Bank - PPI - Responsibility?

Cass

Just a quick one.

Does a Bank hold any legal responsibility for the PPI they provide/sell with any finance loan?

IOW if i apply for a loan, the bank get me to sign the part of the application that covers me with payment protection, can they say they are not responsible for the actions of the insurance company especially since the payments (if the policy is enacted) are paid to them?

Or are the bank "free an clear" once i sign the form, and the insurance company are solely responsible?

coylemj

The document you sign will make it clear that the bank is acting as an agent for the insurance company.

Exactly what 'responsibility' are you referring to?

Cass

Just, would they hold any "responsibility" for any issues with the insurance company/payment protection, and non payment or the stopping of payments.


A poor analogy would be if my car broke down i would go to the dealer i bought it from, and not the manufacturer in Japan/China/Germany, etc. As an agent for the company they hold certain responsibilities for the car.

Same with my PPI. I signed "bank X's" application loan form, acceptance form, etc. Never once did i sign anything with the name of the insurance company. I did not deal directly or separately with the insurance company. Yet the bank say they have no involvement once the forms are signed.


So can they "brush aside" any involvement (perceived involvement), and re-claim the goods. Also i have 85% of the loan paid. I know it's not legally mine till the final payment, but the amount owing in terms of the total loan is small. Plus if they take the car, sell it for pennies, they will still be waiting for the remainder as i'm disabled. (no work, no income).

Ogham

The bank sold it to you - so if you had no need for , it was not suitable for you or you could not benefit from it - they can be held responsible for misselling it.
It happened a lot - there is a big review going on at the moment and in the UK Billions of pounds have been refunded because of mis-selling

See here http://www.moneyguideireland.com/slow-progress-on-ppi-investigations.html

Have the insurance company refused to pay out ? What are the details of the problem .

Cass

It would not fall under mis sold policies.

I had to make a claim (out of work due to tumor), and the insurance company are now saying that i'm fine despite medical evidence, reports, and 2 surgeries. They paid for 18 months, but stopped 7 months before the term of the loan ended (last August), and 6 months before the minimum 24 months payment scale. The bank now want full payment of the balance or the goods back. I'm still undergoing treatment, and on disability so no chance of coming up with the money.

I have kept the bank informed every step, and have the ombudsman involved, but my Mother is disabled, i live in the country (really in the country), and my car is my only means of transport for the entire family. Even if i loose the car i can still claim for the outstanding monies on the loan from the insurance company, however even if successful it will not put a car under my arse until such a time as the situation is resolved. Judging on how long it has taken to get to this point that could be a minimum of another 6-8 months.

I have been informed that my case is extremely strong due to the insurance companies actions. However strong it is or any "guarantees" i get in relation to my chances of success, i fear it may be too late to stop me loosing the car. Not interested in the money, just keeping the car. I bought it brand new, and put a sizable lump of money upfront myself. So the total loan cost was 60% of the cost of the car.


My reason for asking is the bank stand to benefit if they simply wait. If they take the car, sell it for nothing, and come after me for the remainder they will still be waiting until the case is resolved as i have no means of paying for it.

They tell me that they are not responsible, and do not care where the money comes from. I thought they might be willing to listen or even be responsible as i did not request the company they use for PPI, did not get PPI on my own accord (separate to the bank). IOW i would have no insurance but for the bank, would not have used this company but for the bank, etc.

I'm not interested in some legal proceedings (suing, etc.). I'm only wondering if i have any recourse with the bank where they take responsibility for the policies they sell.

My line of thinking is if my TV breaks (fault) i go to the shop i bought it from. They deal with the manufacturer. A poor analogy i know, but somewhat along the same lines.

Ogham

Will the bank consider reduced paymants (if you can afford it) ? Have you been to MABS - they might have some advice.
Can your family help so you don't lose the car ?

Just some ideas.

Sorry - not too helpful ,

Cass

Ogham wrote: »

Will the bank consider reduced paymants (if you can afford it) ?

As the loan term is finished they are seeking full payment. Plus i'm on disability and my mother is disabled the last 30 years, and my Father in his 60's has been out of work for a couple of years. So no help available.

Have you been to MABS - they might have some advice.

Made a call and waiting on a return call with an appointment. As said above i'm in the sticks, and trying to get someone is hard. They only run an office once a week, and it could be weeks before you are given an appointment.

Can your family help so you don't lose the car ?

One on unemployment, and myself on disability. No family to speak of other than that. After expenses, utilities, etc. i have €26 per week to run a car, personal buying (non bill related), etc. Basically i'm in the "red" each week before it starts.

Just some ideas.

Sorry - not too helpful ,

Appreciate the effort.

Not looking to cry in anyone's soup. Just wondering if there is some sort of legal angle i can look into that would stay any action by the bank is all.

Again thanks.

Pat Mustard

First of all, you have every sympathy from me, in this situation you find yourself.

Secondly, please excuse the phraseology here, because I want to get my point across but cannot give legal advice due to forum charter, as you may be aware.

Third, the situation as you have described it is that the insurance company is refusing to pay out, despite medical evidence of illness.

Fourth, the bank, which sold the PPI in the first place, is washing its hands of that aspect, and is pressing for full repayment of the loan, despite the refusal of the insurance company to pay out. There is a two-word phrase relating to organisations that habitually advise people to purchase PPI from a particular insurance outfit, even though they know that said insurance company commonly refuses to pay out to people with genuine, medically evidenced claims: Negligent Misstatement. And it's just disgraceful.

I can see from your posts that you are reluctant to get involved in legal action. However unfortunate this may sound, the only thing that some of these insurance outfits understand is a lawsuit.

I can only offer two pieces of advice.

One, Get a good solicitor, and take advice as to chances of success of suing the insurance company.

Two, do not let this lie too long before you decide on a legally advised course of action. Bear in mind that the statute of limitations has a general time limit for breach of contract of 6 years from date of breach. Beyond that, such legal action will not be likely to succeed, in general.