PPI need proof or wont pay up...Its WAR

[haydn]

My son had a loan which he defaulted due to unemployment. The Premium Protection Insurance took ages to take over payments but would only pay for the times my son was signing on. Unfortunately my son was unemployed for two years but often failed to get out of bed to sign on, and his claim for jobseekers allowance was terminated until he made a fresh claim. Therefore the PPI terminated their payments too, until my son saw sense and renewed his claim. The insurance failed to meet half the payments. The policy document does not state that a claimant has to be unemployed AND make a claim for benefits in order to receive the protection, it just states the you need to be unemployed. We have tried to prove his unemployment by showing National Insurance and paye payments not being made (they would if he were employed) along with our own witness statements confirming unemployment. They refuse to settle and the remaining balance has been sold to a debt collector. This balance would be paid off if the PPI had paid out in full. What can we do?

[Nightmare4banks]

Hi all!

Haydn,in reply to your post:

Please read my post within this section dated 15-09-06 regarding my success in obtaining a full refund of the PPI plus the contractual interest on 2 loans.

After reading my post,if you need any help or guidance,just ask.

All the best!

[haydn]

Yes,your claim seems similar. The PPI wont pay unless you present them with a form ABI1 (You get this form completed by the benefits office) which confirms your unemployed status. My son was lazy in signing on and got signed off every few weeks because he missed his signing on day, therefore the ABI 1 had gaps. The PPI did not pay out for these gaps in claiming benefit. My question is that the policy does noy require a claim for benefits to be made, only that unemployment occurs. Therefore the policy should pay out. How do you prove unemployment (apart from the lack of Paye and NI contibutions) which simply means you may have been unemployed, you may also have been employed but casual. I feel its time to issue a summons but could do with some options or ideas to offer them one more chance to pay out. Alternatively, do I sue for my calculations of the missing payments or for the return of the premium?

[Nightmare4banks]

Hi all!

Haydn in reply to your post:

What has happened in your son's case is very similar to the situation for self-employed people.The insurance will not pay out unless you have an accountant.Although it does not say this in the policy!This is despite the fact that there is proof of self-employment from the Inland Revenue and payment of NI Contributions.Nothing more than a scam!

Anyway,time to hit back!

I would suggest that your son does the following:

1.Sue the original company for the refund of the premium plus interest backdated from date of the commencement of the loan on the grounds of misselling and being misleading less the amounts paid under the policy.A compensatory payment could be added on to the claim of say around £200-£300 for the misselling itself.

2.Contact the debt collecting company and inform it that:

a.the amount owed is disputed IN FULL.
b.the original creditor is being sued for PPI misselling which would wipe out the balance owed completely.
c.any action should be suspended.(This is because of the dispute).
d.The PPI dispute is an absolute defence should the DCA desire to persue the debt.

Anyway,I hope you find this information useful.

If you have any questions,just ask.

Keep us posted.

All the best!

[haydn]

Thats sounds like the fight I'd choose. I have to do the work for my son. The Debt Collector has bought the debt and they have failed to comply with statutory requirements regarding sending copy default notices and deed of assignment. So they cant pusue until they do.

We are already sueing Halifax for the unfair charges and I suppose because they have sold the debt, they will have to pay back to my son, rather than simply credit the outstanding balance.

Anyway, I will prepare a letter before action covering the points you raised and keep you all posted. This account really should have been paid off by the repayments insurance and not reported as defaulted to the credit reference agencies. Its WAR.

Oh! Nightmare, I just reread your post. If I sue for repayment of the premium plus interest minus the repayments, it comes to a negative sum and just about braeks even if I add £300. I think I should just sue for the amounts of repayments that the insurance failed to meet.

[Nightmare4banks]

Hi all!

Haydn,having rent your last post I would consider the idea of the missing payments maybe better for your son's case because:

1.Your son was clearly unemployed based on all the evidence you have available.Regardless whether he received benefits or not.

2.The fact that some of the payments were made and that the policy is misleading can only go in your favour.

I hope you find this information useful.

[haydn]

I assume the summons will be issued against Halifax Insurance Ireland Ltd as the policy underwriter. It seems that Halifax plc acted as their agent.

[Nightmare4banks]

Hadyn,in reply to your post:

1.Which company failed to "cough up" when your son needed the cover?

The answer to this question is the company that you need to sue.

2.Also,make sure that you issue the summons to the address of the company in our country if the main company is based in Ireland as your post seems to suggest.