47 NAT

I had a friend pop round today who was involved in a minor accident at work a couple of months ago, as he is a sole trader he relied on an income protection policy which has basically given him the heave-ho and refuses to pay out due to there time limitations (will only pay out after 6-7 weeks off work). The recovery of the accident is more of a time of work, than any treatment/medication.

Anyway, going back to last year he took out a personal loan on a Audi and has always met payments, up until the last 2. The bank has now started to get funny insisting if he doesnt make the 2 missed payments plus the next one, they will not hesitate to send the A team round to do there stuff. Incidentally he didnt take out credit protection insurance as the time before taught him, it not worth it...case of once bitten twice shy with him! The income protection was took from his bank after advise from the branch Manager!

What literally can the bank do to him? His credit card companies have been fine and given him a bit of grace and wished him well...

I'm not sure where he stands with the bank, but its causing him serious grief a hes never been in any kind of debt before and it will be a few weeks before he is fit to return to work (has Dr's notes)

Any advise? I was going to suggest him to tell the bank that he can make a small payment, to show hes not a knocker. Will that work?

Nath

MattN

First of all get the small print looked at on the Protection. If I remember correctly it has to pay out for missed payments or it's not a protection policy (assuming he met the criteria, an adequate time frame is allowed i.e. if you were in a coma for for 6 months...).

Anyway, did he just miss the payments or did he tell the bank up front?

I goodwill gesture will keep him out of court this is based on the fact if he offers reduced payments and the bank decline it's their problem. In most cases it's just a case of talking to the right person.

robby

if he has a word with the bank manager and explains the situation he might be able to add the missed payments onto future payments (extra few quid a month) with interest.
Always better to see the bank manager in person

47 NAT

Just asked him if he informed the bank and he says he did before the first payment was missed. The income protection policy wont pay out for another 3 weeks if at all by looking at the small print.

The guys a real worrier and this isnt helping much. You would of thought the bank would be a bit more understanding, considering he took there advice and they seem to have fluffed him with the protection insurance....

Nath