Hello chaps...not much information as posting for my sister, but general advise please.

My bro-in-law is self employed. He took out a loan with RBS and was sold PPI. My sis is now looking into claiming this back because she believes that they wouldn't have paid up had he claimed because of his employment status...so...

1. Is the assumption on the self employed thing correct? Or does it depend on the policy?

2. She has contacted RBS and they have fobbed her off for the last 8 weeks. She has asked my advice and would I be right in thinking that once the last deadline is up (her deadline - end of this month) and they don't do anything would she send an LBA?

3. Does the test case on bank charges have any relevance to PPI? Reason I am asking is that I am trying to work out if they are just stalling to make her give up or for a specific reason.

I don't have any other information currently - no figures, timescales of loan etc and am going home in 10 mins.

However I would appreciate a response and I should post back in the morning knowing the information needed.

Many thanks!!!!!

It is very likely that it was unsuitable - but you would need to check the policy.

The bank charge test case has no relevance whatsoever - the legal issues regarding misselling of PPI is established misrepresentation law. Have a good read through the stickies at the top of the PPI forum for more info.

Seems like most loans(well 2 of mine + mums) say they cover self employed however the cover is pretty rubbish and is not near as good as for employed on the unemployment. To claim on mine for unemployment you would have to involuntary cease trading due to insolvency and declare this to the inland revenue, and it will not cover temporary cease in trading so if it was winter snowing and you were a builder and could not go and build for 2 months you would have to shut down your business then prove you were hunting for a job. Where an employed person would just need a letter from employer saying they no longer worked for them. Chances are theyd find a reason not to pay out anyway.

Thank you both - time to get reading over the weekend!