Mis-Sold PPI

[milly143]

Asking on behalf of FIL and don't have time at the minute to look it all up. Am I right in thinking PPI should not be sold against a loan if the person is self employed?

[chelle7272]

See half way down the page:

http://www.moneysavin...im/ppi-loan-insurance

[bednobs]

no, you are not right. PPI can cover other things, not just redundancy (like death or illness).
If he was sold it under the misapprehension it would help if he didn't have any work, that's a different matter

[milly143]

Thanks. Will have to have a read through the link when I have the time.

They say they didn't even know they had it but I don't know how you would actually prove that.

[ladybird49]

My sister in law got a loan from her bank , she didnt want to cash in her isa , she didnt realise she later told me .after shed seen an ad for miss selling ipi,s, that she was paying it , i wrote to her bank explaining she didnt need / want it , as she is retired and would have funds to cover repayments till the loan was paid off and must be reimbused asap
she got it all back im glad to say

[milly143]

That's good to hear Ladybird.

In their case, they took out a mortgage with Northern Rock, who went bust 2 years into their agreement. Because of NR's situtation they were told to go and get a different mortgage somewhere else, so they no longer have that mortgage. However after it was all sorted out they realised they were paying an amount to an insurance company and didn't know what it was for. Upon much digging, they got told it was for a loan they had with NR, so it seems they signed up for it without knowing. They now want to try and claim it back, especially as that loan doesn't exist any more but in my mind it would be hard to prove they didn't even know they had the insurance so they should look into other options, one being that he was self employed at the time. Although I have since discovered that although the mortgage was in both names, the PPI was only in his name, which appears to be classed as mis-sold too.

It's all rather confusing.