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 ?
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 a massive £9 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?
- 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?
Loans from as far back as 1989 have been successful (if you have all your original loan documentation), but generally, we can try to make claims against any account you may have over the last 10-11 years. It does help considerably on older loans that you have your loan account number available. We can give you more advice on specific banks / lenders 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?
Yes you can. However, any compensation that would be due to you will simply be applied against the arrears on your account. Please contact us for more information and we can give you guidance as to your options.
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