14 February 2017 Enterprise Insurance – Compensation Payment Update
Premium Credit are continuing to receive compensation monies from the FSCS in respect of Enterprise policies and to apply these to agreements.
The FSCS estimate that circa 75% of eligible borrowers have now received their compensation payments.
For the remaining borrowers, the FSCS will continue to work through their claims. FSCS Chief Executive Mark Neale has stated;
“Where payments are outstanding, this is generally because of discrepancies between the information held by the liquidator and by the responsible brokers, or because the liquidator also believes the broker still owes money to Enterprise for the policies concerned. FSCS cannot pay policy holders until these issues are cleared up.”
Premium Credit cannot provide compensation payments to borrowers until the amount has been agreed and paid by the FSCS. Once compensation monies are received from the FSCS, we will contact the broker and borrower to inform both parties of the amount received and how this has been allocated. In the meantime, any monthly payments from borrowers will continue to be collected as usual.
If you are a customer and have any queries regarding this process, please do not hesitate to call us on 0344 736 0342.
If you are a broker with a query please speak to your Business Performance Manager.
An Update in Regard to Enterprise Insurance Company Plc and FSCS Compensation Scheme
We are pleased to advise that we have now started to receive payments from the Financial Services Compensation Scheme (FSCS). These payments are in respect of borrowers who used Premium Credit to fund their Enterprise policies and who are eligible for compensation.
We will apply the compensation we receive from the FSCS to pay down the balance owing under each eligible borrower’s Credit Agreement. In the event that the compensation received exceeds the balance owing to us we will promptly pay the surplus to the borrower. This is unless the borrower has expressly authorised and instructed you, as their broker, to receive the surplus on their behalf.
Premium Credit is obliged to allocate compensation to the relevant Credit Agreement and to pay out any surplus compensation upon receipt from the FSCS. In the event that you have not requested to receive payment of the surplus yourself AND confirmed the borrower’s authority and instruction for you, as their broker to receive such surplus, we will make payment directly to the borrower.
To request to receive payment of surplus on behalf of the borrower, once we have received confirmation from the FSCS that a payment is to be made we will issue you a proforma wording. This should be completed with your details in the signature box, dated, printed on your company letterhead and signed by an authorised signatory of the firm before being scanned and e-mailed to us. Such confirmation must be received by us within 7 days of the date of issue.
We will be writing to the borrower to notify them that you have instructed us to pay the surplus compensation to you on their behalf. In the event that any borrower requests payment of the surplus directly to them, or you have not confirmed that the borrower has authorised and instructed you to receive the surplus compensation on their behalf, we will pay the surplus directly to the borrower. If we have already paid the surplus to you and the borrower disputes having authorised and instructed you to receive this surplus on their behalf we will recover this from you and remit to the borrower.
Should the compensation received be less than the balance owing to us we will continue to collect the remaining balance directly from the borrower via monthly payments. Please note that if the FSCS later decide that the borrower was ineligible for compensation we will repay the compensation to the FSCS on behalf of the borrower and will debit the outstanding balance under their credit agreement. Where you have received this payment on the borrower’s behalf, we may be entitled to set off and deduct this from any payment due to you under your trading agreement an amount equal to any surplus which is repayable.
In the meantime, should you have any queries regarding this process, please do not hesitate to speak to your Business Performance Manager.
FSCS Statement on Enterprise
Please click the button below to read the full FSCS statement on their website.
Enterprise Insurance Website
Visit the Enterprise website to read the latest communication from the liquidator of Enterprise Insurance Company Plc on 27 October 2016.