I understand that Lloyds TSB has agreed to pay out for mis-sold PPI insurance policies. Does anyone know whether this applies to business and limited company customers as well as personal ones?
- posted
12 years ago
Claiming in respect of PPI insurance mis-sold
Loading thread data ...
- Vote on answer
- posted
12 years ago
How can a business benefit from PPI?
How can a business become sick (using the normal meaning) or made redundant?
I know that you can get "key man" insurance, but surely that is a different beast entirely
tim
- Vote on answer
- posted
12 years ago
That is why I posted here. Many small limited companies have one director who has doubtless given a personal guarantee to the bank for its loan to the company. That sole director could become sick and the business collapse as a result. Would the insurer pay out? I doubt it.
- Vote on answer
- posted
12 years ago
But giving a guarantee is not "being sold PPI".
There already are "best practice" rules about business guarantees, especially wrt joint owners of property which, if the bank breach, will cause the guarantee to be worthless.
But in most cases the law assumes that a businessman who has given a guarantee did so voluntarily after full consideration of his business options, and is bound by it. Simply arguing that the bank said "sign this or you don't get the money" is not enough. For a B2B contract, the law will start with the premise that "walking away without the money" is a perfectly reasonable option that the businessman SHOULD have fully considered, and it's not the bank's fault if he didn't.
tim