Problem with payment protection after redundancy

paddy147

My sister has been off sick long term for the last 14 months due to a severe illness.She currently gets 201 eur per week Invalidity benifit.

Her employers kept her job for her and kept her on their list of employees as they were decent enough to do so.

Unfortunately,just last Thursday,she was made redundant along with a few other employees due to the company sufferering big financial loses since Christmass.

Her employeer told her to go straight to the Social Wellfare office with the RP50 form

She went up to the Social Wellfare office and asked them what happens next.

They told her she not entitled to anything as she cannot have 2 social wellfare payments,as shes on invalidity payment each week.



Now this is where it get really tricky.

She has a personal bank loan,and she has payment protection in the event of illness and/or redundancy.

She was approved for the loan by the bank (well known Irish bank too) while off sick from work,while her employeers were still paying her a weekly wage (social wellfare payments would go to the employer each week).

But the payment protection company say they will not pay the redundancy payment protection out,as shes on invalidity payment and not getting Job Seekers allowance,so therefore the Social wellfare will not be able to fill in their part of the payment protection form.

The financial company say that she MUST sign on and get Job seekers benifit for them to pay out on the loan payment protection policy.



Is she entitled to the payment protection payout as she was made redundant.

Is there any way to force the payment protection company to pay out on the redundancy protection for her loan????

What has signing on the social wellfare and getting weekly JSA got to do with being made redundant and having a policy that covers redundancy????????

She was made redundant,her policy covers this,so surely the financial company should have to pay out??


Many thanks

Redsquigy

Tell her to go to her local Citizens Advice Centre - they are really very helpful and they will advise her what to do. This is a very tricky situation.

paddy147

Redsquigy wrote: »

Tell her to go to her local Citizens Advice Centre - they are really very helpful and they will advise her what to do. .

Thanks.

Redsquigy wrote: »

This is a very tricky situation.

Possibly a "unique" situation?

wmpdd3

It must happen more often, if someone is on maternity benefit and is made redundant because the company has gone bust, they stay on maternity benefit then go onto JSB / JSA.

paddy147

So none of the experts here can answer this then???

coylemj

paddy147 wrote: »

So none of the experts here can answer this then???

Payment Protection insurance is like mobile phone insurance, it is full of so many exclusion clauses that it is effectively a legal scam so don't be surprised that they're doing their best not to pay.

During the days of the Celtic Tiger these companies were happy to skim off lots of money from people taking out mortgages and car loans. Now that the chickens have come home to roost they're running like rats off a sinking ship.

If you want advice from an expert, see a solicitor.

paddy147

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