Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

PPI Compensation: Yes, A Windfall Could be Yours!

The PPI saga has been running on for so long now that it consumer apathy is understandable. We have always been taught that anything that sounds too good to be true, probably is and so, we exercise caution.

Windfall

Mixed in with this sense of apathy are good luck stories that only happen 'to everyone else'. For example, people assume that PPI compensation is only available to the select few, especially when you read stories of people receiving thousands of pounds in compensation.

This stroke of fantastic luck compounds the issues of apathy and caution. But it really can happen. Take a look at this story of Mrs S and her PPI payout…

Like everybody else, I gotloads of text messagesand mail relating to PPI compensation claims. I also saw the adverts on TV. Like most other people, I had loans and a credit card, as well as a mortgage from the mid-1990s onwards.

I then received information from a claim management company and I liked what I read. I looked them up online to make sure they were areputable claim management companyand decided that it would give it a try.

What I liked was the way that they said they would check if I had PPI or not, and then make a claim with my permission. I sent back an enquiry form with some basic details and in return, they sent meletters of authorityfor each of the banks and companies I had had loans and credit cards with.

I told them that I had no policy numbers etc. but that didn't seem to faze them. I work full time and just didn't see how I would have the time to contact these companies and do all this myself.

Every now and then, I would get forms from them which I filled in with as much information as possible and then a few weeks ago, it happened: I had a phone call from a staff member at the claim management company who said there would be £5,000 in my account by the end of the month!

It was from the credit card company who admitted straight away that PPI had been added to the credit card as part of a package.

As for the other claims, I have one or two yet to decide although the mortgage company have said no. I am going to look into that further as I am not sure if I still have a claim. In fact, alongside the claim management company, I am going to ask theFinancial Ombudsmanto look at it.

What would I say to other customers? Go for it! It really doesn't do any harm to take a look. And work with a claim management company - but do your research first to make sure they have a great track record.

With this story in mind, why not contact us at Payment Protection Scotland? Mrs S's claims are still active and she could get more money. This could be you BUT ONLY IF YOU CALL US!

Your Entitlement to PPI Compensation

PPI compensation is not an automatic payment which is why, if you think you have been mis-sold this insurance product y your bank or lender, you need to make a claim by August 2019.

Justice

It may seem a long way off but if past performance is anything to go by, there could all kinds of thrills and spills to come between now and the PPI compensation deadline of August 2019. So, what are you entitled to in terms of compensation?

Eligibility criteria

We invest a large amount of time in assessing every case that is presented to them for eligibility. After all, attempting to make a claim that is not eligible is a waste of both time and money. Although the vast majority of people with PPI are entitled to claim their money back, it pays to know what constitutes an eligible claim;

  • Policy- the first and most obvious starting point is checking to see if you have a PPI policy or not. This can be difficult in some cases as:
    • a) it is not always called PPI - this is a generic phrase, it could be called anything!
    • b) some lenders hid their insurance policies in the small print, making it difficult to spot.

Check every aspect of the paperwork that you have. In some cases, such as a credit card, it is a small box at the very bottom of a long set of terms and conditions. The box will be pre-ticked in most cases, a mis-selling point in all cases…

  • Time- the PPI saga has been on such a gargantuan scale that it is possible to make claims on accounts that go right back to the mid-1990s. It will be more of a challenge but with perseverance and determination, it may be possible. This is because the banks and lenders have faced enormous pressure from regulators, consumer bodies and consumers themselves to make right the problem that they caused.
  • Mis-sold or not?- and finally, the case is balanced by this third point and that is how the policy was sold to you. There are many reasons for mis-selling of PPI policies to people, from a customer being advised it is the best one for them, but not being given clear reasons why to the fact that many accounts simply had the policy added to it, without the permission of the customer to whom the account belonged.

Do you have a claim?

Many people still have yet to make a claim for mis-sold PPI and, if you are one of them, why not ask Payment Protection Scotland for an assessment of your case? Call our team and set the ball rolling - you could be enjoying a pleasant windfall this side of the festive season!

Have YOU Made a PPI Claim?

There are thousands of customers yet to make a claim for mis-sold PPI and if you are one of them, you need to hurry because the PPI deadline is ticking away.

But it's two years away yet…

The PPI deadline has been set for 29th August 2019 which is now just under two years away. But you know what life is like - things happen, Christmases come and go, holidays and the occasional crisis or two combines meaning that time just whizzes past before your very eyes.

But it only takes a matter of weeks to settle a claim…

Straightforward, uncomplicated, non-complex (get our drift!) claims are resolved in a matter of weeks. But you know, banks want to hold on to their profits and so they are not just giving money away. Some claims will take a matter of weeks, other months but if your claim is referred to the Financial Ombudsman, it could take 12 months or more to get a resolution.

But I could lodge my complaint on 29th August 2019, and they will still have to honour it…

Yes, you are right. You have until midnight on 29th August 2019 to submit your claim for PPI compensation. But what happens if everyone else does the same and the IT system crashes...? No one knows what will happen or how many people will make last-ditch PPI compensation claims but why take the chance?

But I don't know if I even have PPI…

Yes, this is a common issue. In fact, there are thousands of people across the UK, like you, who have no idea that there were mis-sold PPI. Banks and lenders sometimes just added it to people's accounts without asking them or checking if it was the right policy for them. There are some accusers who say that the banks and lenders DID know that the insurance policy was not suitable but still added it and still took your money. Isn't it worth finding out?

But I won't get much compensation…

In essence, it doesn't matter if you are owed a few hundred pounds or thousands, it is YOUR money that the bank simply took from you. And who wouldn't welcome a windfall of cash, no matter how small? More importantly, claiming your money back is about sending a clear message to your bank and lender: this kind of underhand, deceitful, greedy behaviour will not be tolerated.

But can Payment Protection Scotland help me…

Yes, we can. We offer a no win, no fee service and when you call us, you are under no obligation to continue your claim with us. But we think when you see out success rate and our brilliant customer service, you will stick with us: and we will get your money back if you are entitled to PPI compensation.

PPI Mis-Selling Situations

Q. I have PPI on my credit card, which I agreed to buy as I thought it was a good move. I am unsure if I have a claim for PPI compensation. However, at the time I took out the card, I was self-employed although I now operate as a limited company. Do I still have a valid claim?

Payment protection insurance (PPI) was mis-sold in so many different ways that, even though there are long lists of proven mis-selling reasons, on occasions, it does come down to individual cases and circumstances.

In this case, the successful conclusion to the case would lay in the fact of whether the bank knew you were self-employed at the time they sold you PPI on your credit card. In most cases, the bank or lender would have known, as they would have performed checks to satisfy themselves that you could make repayments on the credit card.

We would need to look closer in to the case, as the likelihood is that you would be entitled to PPI compensation and we would be happy to help!

Update: you may also want to consider looking at how much commission was paid to the lender who arranged the policy too. There are cases where more than 50% of the cost of the PPI policy was paid as fees to the broker.

Q. I have a bank account that is permanently over drawn and I have since discovered that some of the 'fines' I paid were down to the bank taking out PPI premiums. I have read that I may be able to claim back these late fees and fines too - is this a possibility?

This has been in the headlines recently as a claim management company brought it to the attention of the authorities that banks were still picking and choosing which aspects they compensate customers for and which they don't, costs and fees being one of them.

The Financial Conduct Authority and the Financial Ombudsman Service have made it clear that banks and lenders must compensate customers back to the financial position they would have been in if PPI had not been added to their accounts.

Following this line of thought would suggest that you do have a case for claiming these fees back as part of your PPI compensation claim, however, you would need to discuss this with us in full - why not call us?

Update: banks and lenders are being told they need to take another look at the costs and fees incurred when they added PPI to customer accounts and take the necessary compensatory action.

Q. I have no idea if I was mis-sold PPI! The whole process was a complete blur when it came to the loan that I took out with the bank and I admit, I just signed what was put in front of me…

You are not the only customer who feels this way!

The mis-selling of PPI highlighted that the process of how additional products were sold alongside loans etc. People often felt confused into signing, so much so that the sale of PPI to customers became part of the process, without question. Representatives were no longer pointing out it was a separate product and that it was not compulsory.

The fact you have no idea that you were being sold it, means it was mis-sold and you could have a valid claim for PPI compensation!

How was PPI Mis-sold and On What?

With the Financial Conduct Authority once again throwing light onto the PPI mis-selling scandal with the announcement of a PPI claims deadline, we thought we would take a look at how PPI was mis-sold and on what financial products.

PPI is…

… an insurance policy that was a debt-specific product. It was a policy that should have covered repayments on a loan etc. should you be unable to do so due to ill health, redundancy etc. In other words, when you were unable to continue repayments because you could no longer work.

PPI was mis-sold alongside…

… financial products in which customers borrowed money. There are several credit agreements and products you need to check, including;

  • Unsecured loans - also known as personal loans, PPI was often attached to these
  • Business loans
  • Store cards - similar to a credit card but you used the card in one particular high street shop
  • Mortgage
  • Second mortgages - for example, if you borrowed a sum of money secured against your home. These loans are sometimes referred to as secured loans.
  • Overdraft - an overdraft is a credit facility, albeit a short-term one but you may find PPI was part of this agreement too.
  • Car finance or anything else you bought on credit - these products are referred to as a 'finance agreement' or 'hire purchase agreement'
  • Home shopping account - this includes any catalogues you may have had too.

PPI was mis-sold because…

  • You felt pressured or obligated into buying it - some customers were told they must buy it!
  • You were promised a better deal or a cheaper interest rate if you did buy it
  • You were given the impression or told you were more likely to be accepted for the loan etc. if you did buy PPI
  • It was added to your account without them telling you
  • You were self-employed, retired or unemployed at the time it was sold to you (you were not covered by the policy as a result)
  • You were told that it did cover pre-existing medical conditions, although it didn't
  • You had a pre-existing medical condition but it was still sold to you anyway
  • You were not told that when it was added to your account, you would pay interest on both the loan and PPI
  • The PPI ran out before the end of the loan but you weren't told this
  • You were advised to buy it but you are not sure why

You can make a PPI compensation claim…

… until 29th August 2019. And that means you need to act now! Why not call our team for more information? There is no obligation and our service is no win, no fee so you get the best deal for you!

PPI Compensation – A NEW Reason to Complain

For many years, the sole reason to complain about PPI was that it had been mis-sold to you. In other words, you had been pressured into buying it or you were told it was must-have in order for your loan application to be successful - and there were more reasons besides - but there is now a new reason to complain. This reason also extends to people who have made a PPI compensation claim and won their money back.

But what is this new reason to complain about PPI?

Commission

A few years ago, a college lecturer by the name of Susan Plevin borrowed money taking out PPI as suggested by her loan broker. However, with all the publicity around mis-sold PPI, she decided to check her policy and make a claim for compensation. When she was in receipt of the original documents, she noticed that the broker had been paid a staggering amount of commission.

In fact, the commission the broker received was more than half the cost of the policy! Ms Plevin took her case to court, successfully arguing that if she had known that the commission payment was so high, she would have questioned the cost of the insurance product.

The court agreed and this has formed the basis of a new tidal wave of PPI complaints. But what does it mean?

PPI Commission - Your NEW Claim

The Financial Conduct Authority (FCA) has interpreted the court ruling and has now opened the gates for people to claim more compensation. If the commission paid to the broker - the person who arranged the loan (this can be a bank or lender) - was more than 50% of the cost of the policy and you were not told this, then you can claim your money back.

More Cash Even if Your Complaint was Rejected

It may be that you have tried to claim compensation because you felt that the PPI policy was mis-sold to you. If your bank disagreed and the Financial Ombudsman also agreed, you may not have received your money back.

But now, banks are writing to people to tell them that they may have a second chance of claiming. And this revolves around the ruling on commission payments.

What Should You Do Now?

Banks and lenders have been told to contact customers asking them to make a second claim for compensation based on this information. This doesn't mean you will get your money back but banks and lenders do know how much commission they charged, and if they owe people this money back.

We can help too so why not give us a call today and get your money back?

What to Include in a PPI Complaint?

If you are considering making a claim for PPI compensation - and you should! - you need to know what you need to tell the bank or lender in order for your claim to progress as smoothly as possible.

How to Complain?

By post or online.

Lenders and banks are now willing to compensate people who were mis-sold PPI and as such, they have now made it easier for people to contact them. If you have access, start by looking at the bank or lender's website for instructions on how to claim compensation. You can also write to them.

Claim management company

Or you can get someone to do it for you. This could be a relative or friend, but you will need to give them written permission to access your personal and financial information. You can also use a reputable claim management company, such as Payment Protectiom Scotland. We charge a few for our professional service, as do other professions for their specialist services.

What to Include?

If you are making a complaint about PPI being mis-sold to you and/or complaining about the high rate of commission on the sale of PPI, you will need to provide the bank or lender with as much information as possible, including;

  • Your full name (or both names if the PPI policy was a joint one)
  • Your date of birth
  • Your phone number - this is essential for the bank or lender to be able to contact you with any questions or to inform you of the progress of your case
  • If you have it, the PPI policy number - it isn't essential but can be useful in tracing your policy quickly
  • The date when you bought the PPI policy
  • You will also need to tell the bank when you took out the loan, credit card, etc. to which the PPI policy was or is connected.
  • You need to tell them of your circumstances at the time you bought the policy - this may include something like your employment status, the company or organisation you worked for and why you believe the policy was mis-sold to you.

Why Was PPI Mis-Sold to You?

There are many reasons why PPI could have been mis-sold to you. Search our blog for the most common mis-selling reasons or why not give our team a call?

We offer a fantastic service with one aim in mind: to get you your money back. We do charge a fee for our service but, on a 'no win, no fee' basis. In other words, you don't pay us unless we have been successful.

And, when you call us, you are under no obligation to continue with a claim. Call us today to find out more!

PPI Mis-Selling – The Main Reasons

Payment protection insurance (PPI) is an infamous product, especially the way in which it was sold. If you had a loan, credit card, store card, car finance, catalogue account etc. from the mid-1990s onwards, it is more than likely that you had PPI.

In the majority of cases, it was mis-sold and there are many reasons why this is the case. With the Financial Conduct Authority announcing a PPI deadline of August 2019, read through the following list - have you been mis-sold PPI?

Were you mis-sold PPI?

I. You were pressured into buying PPI or told that you must buy it

II. You were promised a cheaper loan rate if you took out PPI because it made the loan a lower risk, or something similar

III. You were told you were more likely to be accepted for a loan, credit card etc. if you took out PPI - again, you may have been told because this made you a lower risk

IV. You didn't know you have PPI because it was added without your consent

V. You were advised to buy PPI- advised sales are now more tightly controlled but many people were advised to buy PPI even though the policy clearly didn't suit their needs

VI. At the time you were sold PPI, you were either self-employed, employed or retired but you were still told or advised to buy PPI

VII. You had apre-existing medical condition at the time that PPI was sold to you which may have affected your ability to make a claim against the insurance policy - in most cases, pre-existing medical conditions were not covered by PPI

VIII. You were told that your pre-existing medical conditions were covered by the PPI policy, even though it would not have been - PPI did not cover pre-existing medical conditions and also did not cover illnesses such as mental health or 'back problems'

IX. It was not made clear you wouldpay intereston PPI when it was added to your loan - this made borrowing money very expensive

X. It was not made clear that thelength of the PPI policywas shorter than the term of the loan - that is, your loan was over 10 years but your PPI cover only extended to the first 5 years of the loan

Do You Have a Claim?

There were an estimated 64 million PPI policies sold to millions of customers across the country. If you had a loan, credit card, catalogue account, car finance, mortgage etc. you could be a victim of mis-selling. And PPI was still being mis-sold as recently as 2010!

The time has come to claim your money back - do it now before time runs out…

PPI: You Probably Don’t Even Know You’ve Got It!

It is a scandal that has rocked the British financial industry, forcing several step changes to the ways banks and lenders operate. But even with the announcement of a PPI deadline of late August 2019, the Financial Conduct Authority is left with a headache: just how do they encourage people to make a claim for PPI compensation is people don't even know if they had a PPI policy or not?

Do You have PPI?

We want anyone who has a claim for PPI to get their money back and, as such, we have been giving out all kinds of suggestions and ideas over the years to help people locate the PPI policy that could lurk on loans, credit cards, catalogues and more.

To help determine if you are likely candidate for having PPI, answer the following questions:

Did you take out or have a loan, credit card, catalogue, car finance, store card that allowed you to spread payments over many months or any other kind of borrowing from the mid-1990s onwards?

If you did, the likelihood is that there will be PPI on your accounts. Most banks and lenders were affected by the mis-selling scandal and so even if a bank or building society says they have compensated all the customers they say it affects, there are people like you who have yet to make a claim.

Where you sold additional policies at the same time as you took out a loan?

Even today, when we buy something, usually electrical, we are asked if we would like to protect it with an extended warranty or some kind of breakdown insurance. Depending on the product you are buying and the insurance policy being offered, it could be a good idea.

Or, the policy may be so basic that actually, it is not worth the paper it is written on or the money you ware paying for it. It may also be that another insurance policy you already have would cover the problem if there was one. And this is what happened with PPI.

PPI was often sold as an additional 'catch all' policy that some people felt compelled to buy and others thought that it was compulsory. But when you take out a loan or credit card etc., you don't need to buy anything else (although this can vary for bigger loans or mortgages).

Did you apply for a credit card, store cards, loan etc. online?

You may not have realised you bought PPI at the same time you opened a credit card account or bought a loan online etc. especially if you did so online. The option for PPI was usually already ticked, meaning you bought it and were paying for it without realising.

We can help determine if you have or had PPI and whether you have a claim for compensation. In most cases, customers do have a claim, successfully claiming all of their cash. Isn't it time you did the same?

PPI & Debt: Quick Questions and Quick Answers

If you are juggling debt, you may wonder if PPI compensation is yours to claim. If it was, you could make headway in clearing some of these debts. But you probably have many questions. You may be nervous about making a claim too when faced with banks, lenders and the possibility of more hassle when it comes to money you owe. Our quick questions and answers cut through the waffle…

Can I complain about PPI while on a debt management plant or DMP?

YES, you can complain about the sale of PPI whilst you are on the DMP. If your bank or lender is NOT a creditor, any PPI compensation due to you, you will receive.

But, if your bank or lender is a creditor, any PPI compensation you receive will in part or all of it, be offset against the money you owe in the DMP.

Either way, it is worth making a claim for PPI compensation.

What about if I have a debt relief order or DRO?

YES, but, if you make a claim during the 12-month moratorium, you may find that your DRO is revoked. This is because a PPI refund means you are no longer eligible for a DRO.

If you do want to complain about PPI, you must tell the official receiver that you want to do so and whether you have complained previously. If you don't tell the official receiver and continue with your claim, your DRO restrictions may be extended and it may be that you committing an offence too.

I have an individual voluntary agreement (IVA), can I claim PPI compensation?

If you are on an IVA, it is unlikely that you will receive any PPI refund or compensation regarding the complaint if you owned the policy when the order was made. This includes if you have been discharged from the IVA too.

This is because a PPI policy is considered an asset and is therefore covered by the terms of the IVA.

If you still want to claim, an insolvency practitioner could help you and explain in more detail how your claim or refund would be dealt with. It is important to seek advice as failing to do so and receiving a 'windfall' of cash could mean you commit an offence.

 If you claim is successful, it is more than likely that the PPI compensation would be paid to your insolvency practitioner.

Can I complain about PPI if I have been declared bankrupt or sequestrated?

It is unlikely if you have been declared bankrupt or sequestrated that you will receive any refund in relation to a PPI complaint if you owned the policy when the order was made. This includes discharged bankrupts and sequestration too.

This is because the policy would have been counted as part of the bankruptcy estate. It is the official receiver who owns the PPI policy and thus they have the right to claim any PPI compensation owed.

Again, it is important to seek formal advice as making a claim and pocketing the proceeds could see you prosecuted for breaching the terms and conditions of the bankruptcy or sequestration.

Want to know more? Our team are on hand to answer your questions