Deceased PPI Offer

Monkey15 · 4 April 2019 at 9:40AM

Hi. My Mum made a PPI claim through a 3rd party, prior to passing away. 4 weeks after her death, an offer was made to her for quite a large amount of money which they were offering to send by cheque upon receipt of a new ‘letter of authority’ as the one she had signed was older than 6 months! I believed bank, etc only had 8 weeks to respond? I contacted the 3rd party but they stated as she had died, it would not be paid out. Being upset at loosing my Mum suddenly, I didn’t pursue it. But it’s upsets me to think they’ve made money out of her when they took too long to reply?!
Any help much appreciated, I don’t know whether to retry the original company, try a new one or try to do it myself. The 3rd party company were not at all helpful the first time round. Many thanks

Nasqueron · 4 April 2019 at 10:13AM

Banks have 8 weeks to look at and respond to your complaint before you have the right to refer to the FOS, this does not mean they have to resolve your complaint and pay out.

Redress from PPI complaints is paid to account holder (your mum), not to the PPI firm, you then pay them their cut, they do not receive the full refund and pay you. Ask the bank to issue the cheque to the estate (or you if you have probate), you have already succeeded in the complaint, you don't need to (nor can you) complain again.

If your mum used a claims firm then in all likelihood you will have to pay them however as there was a valid LOA when the complaint was made and the payout was a result of the complaint (assuming it wasn't rejected, LOA expired and then the bank did a Plevin refund?)

dunstonh · 4 April 2019 at 11:05AM

I believed bank, etc only had 8 weeks to respond?

No. Its an objective rather than a hard target.

I contacted the 3rd party but they stated as she had died, it would not be paid out.

PPI redress is paid out to the estate if the debt it was linked to was repaid in full by the estate. If the debt was written off at death, then the redress is kept by the lender.

However, the contract with the CMC ends on death (virtually all contracts end on death).

But it’s upsets me to think they’ve made money out of her when they took too long to reply?!

They havent taken too long to reply.

Before you do anything, was there a debt at the point of death or is the debt the PPI is linked to long repaid?

[Deleted User] · 4 April 2019 at 12:21PM

Monkey15 wrote: »

4 weeks after her death, an offer was made to her for quite a large amount of money which they were offering to send by cheque upon receipt of a new ‘letter of authority’

Unless you are confused due to the passage of time, this sounds very suspicious.

The Bank would not request a Letter Of Authority before any cheque would be sent since only a Claims Management Company would want or need an LOA.

Note that Banks don't pay PPI redress to any CMC, it goes direct to the complainant who then receives a bill from the company.

Are you sure the "cheque" being offered was not just the Claims Company saying that there could be potential redress and so wanting a new LOA? It certainly sounds that way and would explain both why the Bank didn't respond and why the CMC said no payment would be made as she had died.

The best thing you can do is check who sent the letter offering a cheque in exchange for an LOA.

You may well find that no complaint was ever sent....

Deceased PPI Offer

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