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Scotland Wide PPI Specialists

Can You Claim on Unregulated PPI?

24 July 2017

Have you heard of unregulated PPI? Some people are suffering as a result of being sold a policy that was unregulated. Read this real-life case to find out more…

In 2001, we entered a credit agreement for new windows and doors. The loan was for £10,000 and we were sold PPI alongside it. I realised some years later, that because I was self-employed I wouldn't be able to make a claim.

I asked for my money back but the company in question, GE Capital said I was only entitled to £300 back even though the premiums totalled around £1,400.

I complained to the Financial Ombudsman who said there was nothing they could do as GE Capital were not regulated by the Financial Services Authority, as it was known back in 2001.

This seems really unfair. Is there anything else that can be done?

At Scottish PPI Claims, we hear similar stories about PPI policies relating to catalogues. Before January 2005, general insurance sales were not regulated and therefore, because this policy was sold to you in 2001, the Financial Ombudsman cannot deal with the sale of the policy.

GE Capital were regulated but the sale of the PPI was not. The mis-selling reasons you listed are exactly those that the Financial Conduct Authority is trying to stamp out. High premiums, poor selling tactics and the fact you were sold a policy that did not cover you.

However, there may be one course of action left open to you and that is to write to the Ombudsman again and make it clear you are complaining about the policy itself, and not the way in which it was sold.

This is more likely to be successful if the cover was provided by a regulated company. In some cases, the PPI agreements with GE Capital were provided by Pinnacle, a company that was regulated.

We suggest you highlight to the Financial Ombudsman;

  • You couldn't use the policy due to your self-employed status
  • The inability to cancel the insurance and get a reasonable refund is contrary to the Unfair Terms in Consumer Credit Regulations

There are no guarantees but the Ombudsman may take a different view if you focus on the policy and its terms and conditions, rather than the sale.

The issue with PPI are many and varied. And there are issues with PPI and catalogue accounts as they say the same thing - pre-2005, they were unregulated and thus, you have not course of action to take.

But if the policy is NOT suitable for you, make a point, make a noise, keep asking for your premiums back. And contact Scottish PPI Claims - we may be able to help!