Frequently Asked Questions
- QWhat is PPI?
PPI is a form of insurance which is normally sold on personal loans, credit cards and mortgages. It is designed to cover your monthly payments on your accounts should you be unable to work due to accident, sickness or redundancy. PPI has been around for decades. In theory, it is a useful, important product to have because it can provide you with piece of mind to cover your loan / credit card / mortgage payments should you be unable to work.
- QWhat is wrong with it ?
- A.It was expensive, unsuitable and in some cases added to your account without you knowing! Furthermore, as the insurance had many exclusions, most people could not claim when they needed to. The Citizens Advice Bureau investigated the market and found that consumers were being overcharged by as much as £1.4 billion per year for PPI. PPI added around 13%-56% to the cost of a loan and a survey in 2001 suggested 85% of people who tried to claim on the policy were unsuccessful. Following the recent court action in the High Court, the banks have set aside over £22 billion in compensation which is due to be paid out to customers if their claims for mis-selling are upheld.
- QAm I eligible?
People who have been mis-sold PPI have much in common. Here is a list of reasons why you may have been mis-sold:
- Were you unemployed or retired when you took the loan out? The insurance was pointless, you would never be off work!
- Did you receive full sick pay from work? Were you self-employed at the time you signed your loan agreement? Most policies would have excluded the self employed if you tried to make a claim.
- Did you have any pre-existing medical conditions at the point of sale of the loan? Most policies don’t allow you to claim if the illness you had was one which was pre-existing.
- Were you aware that you were paying for PPI cover? If you weren’t, you were unlikely to have been told about all the relevant terms and exclusions about the policy.
- Were you told you ‘had to take PPI’ to get your loan or were you pressurised into taking the insurance out.Were you told the true cost of the PPI.
- Were you asked whether you had any other income protection insurance which you could have used instead?
- QDo I need all my original documentation or account numbers?
A.If you do not hold any finance documentation relating to your loan or credit card, we can still make a claim on your behalf. We can write to the bank who provided your finance and find out if you have been paying for PPI. Whi6lst we cannot guarantee that your bank will still hold your documentation, we can certainly request the information in the hope we can secure details of your previous finance agreements.
Our ‘Customer Agreement’ form is drafted to make it easy for you to provide the names of your lenders so we can make enquiries with them to see if you have been paying PPI. As such, all we require is the name of your lender to begin our enquiries!
- QHow long will my claim take?
Every PPI case is different and how long it takes may depend on the following factors: Our average timeframe to get your compensation is around 8-12 weeks, but we cannot guarantee to settle your case in a specific amount of time. Some take much less time and other cases take longer. If the claim is taken to the Financial Ombudsman Service, the claim may take up to 2 years.
- QHow much will you receive?
- A.The average claim is around £2200, but the amount you receive depends on a number of factors. If you need further information, please contact us asap.
- QHow far back can I claim?
- A.There is no time limit to claim. We have successfully claimed compensation on loans from as far back as the 1980s. However, if you (or your lender) do not hold any documentation about your historic borrowing, then we may not be able to help. This is because the majority of banks / lenders do not hold records prior to the late 90s and so if you dont have information about your finances prior to this date, then there is little chance your lender will. Therefore, the general rule is that if you do not have information about your historic borrowing, we may be able to recover the details from your lender if the finance was taken out between the late 1990s and 2010 (when the banks stopped selling PPI). We can give you more advice on specific banks / lenders retention periods if you contact us.
- QI’ve made a claim on the policy, can I still make a PPI mis-selling claim?
YES, even if you’ve used the policy to cover your repayments, you can still make a full PPI claim but your compensation will be reduced by the amount you were paid whilst you were claiming under the policy.
- QCan I make a claim on a CLOSED loan account?
YES of course, it makes no difference if your account is open or closed, other than the compensation will be worked out slightly differently! Check through your loft and pull out all of those agreements asap!
- QWill making a claim affect my relationship with my bank?
We have never experienced a customer suffer any adverse reaction from a bank following a PPI Mis-Selling claim. However, we cannot guarantee anything and if you are at all concerned, you should speak to us before making your claim.
- QCan I make a claim if I am in arrears, in a debt management plan or bankrupt?
- A.Yes you can. However, any compensation that would be due to you may be applied against the arrears on your account. Please contact us for more information and we can give you guidance as to your options.
|Monday||9:00am - 5:00pm|
|Tuesday||9:00am - 5:00pm|
|Wednesday||9:00am - 5:00pm|
|Thursday||9:00am - 5:00pm|
|Friday||9:00am - 5:00pm|