Payment protection

Whispered

Hi I'm not sure if this is the appropiate forum. Please move me to the correct one if it's not.

Basicially I was made redundant in November. I have 2 loans, both of which have payment protection. When I contacted the insurance company they told me to continu paying back the loan and when they have processed my claim, I would be reimbursed. They recieved the last of my paperwork in the first week of December. I have not heard from them since. I rangtoday and was told they were working on it and they would get back to me when they have more info.

While I understand the need to continue paying, I simply can't do it for much longer. I'm nearly 800 overdrawn due to these loans. Is there any way I can encourage them to speed it up a bit? I'm about to get into a lot of trouble for a loan which, as far as I was aware, was fully covered. I didn't realise that it could tak up to 2 months to process a claim. It feels like I've been taken for a fool, paying back almost 10% extra every week to STILL have to worry about th loan.

Any advice appreciated.

broker2008

Which company is it through ? Was it done direct or via a broker ?

Whispered

The first one is with St Andrews. They recieved my paperwork early December. I got a letter from them yesterday saying that there was a problem with the part of the form the welfare office fills in. I rang them, told them how he made the mistake and was told it was fine. So I rang again this morning and it had been "referred back" and I will be told if it will be accpeted without further paperwork within 7 days. :mad: So another week to find out if I have to start again.

The other one is with PWG. They recieved my paperwork on the 30th Dec aparently (despite them being posted at the same time) and they are currently working on claims recieved on the 24th. So they haven't even begun to sort it yet.

Like I said I understand they are busy and I understand the need to continue payment, but I simply can't keep it up. It's the only thing still coming from my current account, everything else has ben moved to joint accounts or canceled. I'm suprised my bank has not stopped payment leaving my current account at this stage.

EDIT: It was the insurance offered with the personal loan.

Jet Black

From my own experience these companies are a joke. They take ages to process a claim and then send you a letter asking for more documents or form x was not filled in correctly.

What you need to do is contact them and ask how long will it take to process the claim. Make sure you keep in contact with them to get any updates.
Then contact the bank and explain the situation. Say you are waiting on the PPI claim and you were told it would be processed in x days. See if there is any way they can they can help by letting you stop paying the loans for a month or two, or reduce payments.
The majority of time these companies are third party to the bank so if you go to the bank you will just be given a phone number to contact them.

I think the way the payment of PPI works is went you first draw down the loan the bank pay the full amount to the insurance company, then whatever that cost is is added to the loan, so if you were to miss a payment it should not affect your claim but may affect your ICB record. Clarify this with the bank thou.

Whispered

I called them again today, one told me to call back this day next week the other said to call again tomorrow (have been telling me this for ages now)

Do you know if they can refuse to pay out? The girl on the phone was saying things along the lines of "IF the claim is successful" and that the assesor decides if the claim will be successful or not and how long after processing payment is made. How does that work? I would have though you buy PP to cover you if you're made unemployed, you pay back for 3 years - get made unemployed....where is the decision to be made?

Perhaps I'm just panicking over nothing now.

Jet Black

They could only not pay if you were not eligible. Some of the terms are must be employment for 6 months, be a permanent postion, be an employee, not contract work and took the job knowing you were going to be made redundant.

Not sure how long it would take to process the payments, it should not be more than a couple of days once its accepted.

These insurance companys leave you waiting and ask for more information in the hope that you will not follow through on the claim.