Payment Protection

[CoverItAll]

Good afternoon,

If any Forum Member has Payment Protection Insurance, and believes that it was not sold to them correctly, my Company will with pleasure look into this for them completely free of charge. It is as much in our interest as it is in theirs, to expose those responsible for mis-selling this product.

I have never seen a proven case of mis-selling in the prime mortgage market. Most complaints seem to be about PPI rolled up and added as a single premium to a secured or unsecured loan, thus providing up to 70% commission to the seller. There is absolutely no advantage to the borrower in having single premium PPI rather than monthly paid, in fact quite the reverse is true. The only advantage is to the seller.

Please, never, never, never buy single premium PPI.

[carlmcmullen]

John,

Can somebody still have a claim of mis-selling PPI whilst in an IVA ?

[CoverItAll]

There is nothing within Insurance Regulation that says that if an Insured enters an IVA, any of his rights under the insurance contract are forfeit.

Is there anything within the IVA sphere that removes those rights ?

[carlmcmullen]

No i dont belive there is, however if there claim was successful this would probably be classed as a windfall and the money paid into the IVA.

But as you have suggested these type of companies need to be exposed !

[CoverItAll]

Would 100% of the award be classed as a windfall and taken in IVA repayment ?

[carlmcmullen]

Afraid it would as far aw i was aware - Unless Ian / Melanie tells us any differnt

[CoverItAll]

Even if it is classed as a windfall I still think it is right to make companies who mis-sell PPI pay for this, especislly when the single premium PPI is a major part of the debts.

Without the single premium PPI, the Client might well have been able to manage their debt.

[MelanieGiles]

Definately a windfall, but under the terms of the IVA you may be able to keep the first £500.

[CoverItAll]

Definitely worth it then, as no cost to the Client is involved.