In 2005, the Financial Services Authority (FSA) launched an investigation into what has now become known as the payment protection insurance (PPI) scandal. They uncovered mis-selling of policies on an unprecedented scale. In 2007 they issued many of the banks and lenders involved in the scandal with fines and in 2011, the High Court ruled that companies must repay fees from mis-sold PPI.
Lenders had to make provisions for PPI repayment by putting aside money for the purpose and the payouts are already in the billions of pounds. Anybody who was mis-sold a PPI policy is entitled to get their money back and they have the option of getting professional help with the claim if they choose.
PPI can be confusing, so here’s a quick look at some key points to help clarify it.
PPI is an insurance that covers repayments to the lender in the event the policyholder becomes ill, injured or unemployed and is therefore unable to make the monthly repayments. It is an add-on product to consumer credit agreements from banks and lenders, such as loans, mortgages, credit cards, store cards, car finance etc, which covers their repayments in the event that they are unable to.
Some people chose to purchase PPI, but many people were falsely told they had to purchase it, making it mis-sold. Another way in which PPI was mis-sold was when people weren’t told of their right to look elsewhere for a better deal.
Other examples of mis-selling include selling it to people who could never make use of it due to being age or self-employed. Both of these situations render a PPI policy void.
Arguably the worst form of PPI mis-selling were the cases where the PPI was just added on to the customer’s loan repayments without their knowledge – they never knew they even had it and were paying for it.
Can I claim for PPI?
Put simply, if you have or ever had PPI and believe it may have been mis-sold it, you can make a claim. If you have all the literature about the transaction including terms, contracts and agreements, you should be able to spot the PPI and know if you have been mis-sold this policy.
Check your credit agreement documents carefully, or your credit report, but be aware that the product can be masked as something else other than PPI. The best way to check for this is to see if there is an insurance fee or other similar cost that you are paying on your bills. These could be labelled as:
- Payment cover
- Loan care
- Retail payment protection,
- Loan protection
If you are not so sure, you should again go back to the lender and ask for clarification. If you discovered something in your records or their records that you did not know about, probe them. You can also ask your bank or lender if you had PPI, though if they say no but you think that may not be the case, you could request the information about their underwriter. This could give you direct contact to the insurance company and check if that PPI policy ever existed.
All of this may seem a bit confusing or long-winded, which is one of the reasons why some people choose one of the PPI claims companies to handle their claims for them.
How to make a PPI claim
If you choose to claim PPI by yourself, you’ll need to write to your lender and lodge a complaint directly; details of the PPI policy will be needed and therefore you do need to have some of the relevant information to hand. Remember to double check the first offer they make you as it may be quite a bit less than what you are actually entitled to. See a PPI claims calculator to get an estimate of what you could be owed back.
Millions of people have made claims for refunds so far and many have been with the help of PPI claims companies. The reasons people choose us, for example, vary from wanting a stress free process, to wanting professional solicitors to work on their claim for the added peace of mind it gives them.
We have UK based friendly claims advisers only a phone call away and we provide regular updates throughout entire duration of your claim so you always know what stage it’s at and what is happening. All claims are handled on a no win no fee* basis, which means you won’t have to pay anything if you don’t win your PPI case.
We are proud to say that we have helped many people claim back the fees on mis sold PPI policies and if you require it, we can help you too.