PPI claim with Welcome Finance refused as it was pre-2003

[Charlos1]

Hi, and thanks in advance for any advice.

I took out a loan with Welcome Finance to purchase a car through a local dealer in November 2002. At the time I was told that, due to my credit situation at the time (I had a CCJ) I had to take PPI or they wouldn't provide the finance.

All told, I paid £1300 out of a total loan value of almost £10,000 in PPI. At the time the loan was taken and throughout I was employed full-time. I was ripped off big style on this, as the car was only £5,000. I was young and foolish

I recently contacted Welcome and filled in their questionnaire to make my claim, but I've been told that, as the loan was taken before 27/2/03, they are not required to investigate it.

Is this correct? Am I being fobbed off? Is there any further action I can take, or have I simply left it too late to claim?

Any advice would be much appreciated.

Cheers

Graham

[leclerc]

Re: PPI claim with Welcome Finance refused as it was pre-2003

When did the loan end?

[di30]

Re: PPI claim with Welcome Finance refused as it was pre-2003

Hi Graham & welcome

You could try contacting the Financial ombudsman service (FOS) who will probably suggest the underwriter/insurer avenue, this is what they usually do, as they were not regulated by FSA at the time, but they were regulated by GISC I believe.

Welcome Finance to my knowledge are being dealt with by the Financial compensation Scheme (FSCS) but they will only deal with FSA regulated policies, I know it seems unfair.

So I take it the broker you used was Welcome Finance? who arranged the loan?
In this case then do contact the FOS, and see what they do suggest, it will probably be as I said, you could ask the FOS to write to the lender on your behalf to find out who the insurers/underwriter were at the time you taken out your loan, or you could do this yourself by asking them to send you a copy of the policy details that are free, they should post them to you within 14 days.

Details of the insurer will be enclosed on the policy details, you can try pursuing them, if this fails, and if they were regulated, the FOS will be able to investigate (take it on). They will check the involvement they had when the policy was sold to you from broker/lender/insurer etc.

Please be aware though, it may take some time, but it's another avenue to take to try getting your refund back to you.

Good luck.

[Charlos1]

Re: PPI claim with Welcome Finance refused as it was pre-2003

Thanks for the replies. The loan ended November 2006. It was arranged by a local car dealership, which has since closed down.

Having looked at the original documents, it mentions Norwich Union Insurance, and Direct Group.

I've since completed the complaint form and questionairre on the FOS site and mailed it off to them a few days ago.