FSCS Refuses PP1 claim

[barbill13]

I have just received a letter from FSCS refusing my claim. On the grounds that this was set up on a monthly renewable payment basis and we therefore could have cancelled at any stage. Secondly the policy terms and conditions were made available and although the benefits my husband had (very generous work package) were significant, the PPI policy would have provided a greater level of cover. As the policy was presented by an advisor we were in a position to question its validity or refuse.

We had an original mortgage several years before the current one we are now claiming on. Both mortgages and PPIs were arranged by the same advisor and this included PPI through LLoyds. LLoyds have settled a claim in our favour immediately on the same grounds that we have submitted the claim against the second mortgage broker. We believe that we agreed to the PPI insurance as we had it on our first mortgage and were under the impression it was a condition of the mortgage. We believe if it had been explained to us that we did not need it as my husbands benefits ensured we were covered for 6 months then we definitely would not have agreed.

I do not understand why LLoyds paid immediately (the payments were also monthly with them) and that FSCS has refused. Any advice on how to deal with this would be welcome.

[skv123]

Re: FSCS Refuses PP1 claim

I have just received a letter from FSCS refusing my claim. On the grounds that this was set up on a monthly renewable payment basis and we therefore could have cancelled at any stage. Secondly the policy terms and conditions were made available and although the benefits my husband had (very generous work package) were significant, the PPI policy would have provided a greater level of cover. As the policy was presented by an advisor we were in a position to question its validity or refuse.

We had an original mortgage several years before the current one we are now claiming on. Both mortgages and PPIs were arranged by the same advisor and this included PPI through LLoyds. LLoyds have settled a claim in our favour immediately on the same grounds that we have submitted the claim against the second mortgage broker. We believe that we agreed to the PPI insurance as we had it on our first mortgage and were under the impression it was a condition of the mortgage. We believe if it had been explained to us that we did not need it as my husbands benefits ensured we were covered for 6 months then we definitely would not have agreed.

I do not understand why LLoyds paid immediately (the payments were also monthly with them) and that FSCS has refused. Any advice on how to deal with this would be welcome.

They are a fund of last resort with no formal appeals process. I think you will struggle to take this any further.

I appreciate this isn't nexactly what you want to hear but i think it's best to put the matter behind you.

Happy to see if anyone disagrees though.