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?
No ! Use our Free Checking Service !!If you are not sure if you have been paying PPI on your historic borrowing, we can contact your lenders to see if you were charged any PPI. We conduct this service for you completely free. All you need to do is provide us with are the name(s) of any lenders you have held finance with in the past. We can then approach them for your information. If it transpires that you were sold PPI on certain borrowing, we can attempt to make compensation claims on your behalf in an effort to recover any compensation which may be due to you. We must make it clear that it is entirely your decision as to whether you decide to then instruct us to undertake the claim on your behalf. Alternatively, you may choose to deal with the claim yourself directly with your bank/lender. Our free checking service is therefore undertaken on a strict no-obligation basis. You do not have to use our services to undertake your compensation claim in the event we locate PPI in your name and there is no charge whatsoever if we are unable to locate any PPI in your name.
- QHow long will my claim take?
It can take 2-6 weeks for us to conduct our free checking service on your behalf. This is because different banks / lenders have different response times and some can take much longer than others. We can provide a more accurate timescale if you confirm the names of your lenders to us.
If we locate PPI and you choose to instruct us, your lender has up to 8 weeks to investigate your claim. Some lenders deal with claims quickly and others take the full 8 weeks. If the claim is rejected and appealed to the Financial Ombudsman Service, the claim can take up to 2 years.
- QHow much will you receive?
The average claim is around £2200, but the amount you receive depends on:
- The amount of your finance or balance of your credit card
- The original cost of the policy
- Whether you had other loans with the same provider which paid off earlier loans
- Whether you were charged any late payment charges on your agreement
You may receive far more than the average or far less.
- QHow far back can I 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 (via our free checking service) if the finance was taken out between the late 1990s and 2010 (when the banks generally 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!
- 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 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. For this reason, we do not want to put you into a position whereby we recover compensation for you, but you do not receive any money directly. Please contact us for more information and we can give you guidance as to your options. If you are in an IVA or adjudged Bankrupt, you should seek guidance from your Insolvency Practitioner or the Official Receiver.
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