Can I claim back PPI for a deceased spouse?(1 October 2012)
Some people may not realise that it is not only their own mis-sold payment protection insurance (PPI) that they could be entitled to, but also that of a husband or wife who has passed on. If your spouse has sadly died but you know they were paying for PPI during their lifetime – and suspect it may have been mis-sold to them – you should find out whether you are entitled to claim it back.
The key is to first establish whether they were paying for it. PPI was usually sold alongside products such as credit cards, mortgages and personal loans. A monthly amount was paid into a policy with the aim that if the person became unable to afford repayments on their borrowings, as a result of redundancy, illness or accident, they would be protected by the PPI arrangement.
Many people were sold this kind of cover by banks, building societies and insurance companies, including well-known financial institutions such as HSBC, Barclays, Lloyds TSB, Santander, Natwest and Halifax.
The second step is to work out whether the PPI was mis-sold. In many cases, lenders and other companies sold PPI to people even if they weren’t truly eligible for it. For example, due to a person’s employment status or medical history, they may not have met with the conditions specified and therefore, despite paying for PPI, when they needed it they would not have been able to claim it. This meant it was wrongfully sold.
There were also cases whereby NHS workers and people employed in similar roles were already protected by an arrangement in their existing contracts, and therefore didn’t need PPI. If a financial business sold PPI to these people, it also constituted mis-selling.
There were even people who didn’t realise they were paying for PPI, or thought it was compulsory, which meant they couldn’t have truly understood what was being sold to them. This was clearly mis-selling.
If any of these situations applied to your late spouse, or you suspect that this was the case, you should investigate it further. If you need help with this, there are PPI solicitors who can provide advice and support. If you choose your PPI claim company carefully, they will remove a lot of the hassle and stress from the process for you and only take a fee from any compensation that you receive – while you, of course, receive most of it.
So, if you or your deceased marital partner were mis-sold loans and you need to submit loan protection claims, or similar complaints – don’t hesitate to find out more.