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Archive for tag: Can you claim PPI compensation

Can you Claim PPI compensation?

Mr. H was 66 years of age, newly retired after many years working for a public company. He and his wife wanted to sell their property and down size to a smaller place. In order to sell, they felt they needed to do some work on their home. Therefore, Mr H. applied for a personal loan to get the work done. His intention was to pay off the balance when the house was sold.

As part of the loan application, the bank representative suggested PPI would be a good policy as it would protect any repayments on the loan if Mr H. was unable to pay. As he was newly retired, he thought this was a good idea.

The bank representative also suggested it would stand his application in better light as it showed he was being responsible. As this was important to him and his wife, Mr H. signed on the dotted line.

On the face of it, the above scenario looks perfectly sensible and normal. The bank representative, said Mr H., took time to explain all about PPI and the loan he was applying for. It was an unsecured personal loan of £5,000 to make small changes to their current home, including decorating throughout the property.

There are however, several issues with Mr H. and the way he was sold PPI:


It is clear that at no point did Mr H. withhold information. He had been a customer of this well-known high street bank for many years. However, PPI was only valid for people aged between 18 years and 65.

At 66, Mr H. would not have been covered by the PPI policy.


Mr H. was also retired, a fact that he made clear when he told the bank why he wanted a small loan to complete improvements on their current home so that they could sell and down size. PPI was only for people who were in employment for more than 16 hours a week.

Mr H. was not in employment therefore he was not covered by the PPI policy.

A suggestion that buying PPI would stand his application in a better light

Mr H. was acutely aware that as he was retired with no independent income other than his state and personal pension that the bank may not see him his application in a favourable light. It was an emotional decision too as by completing the work on their current home, Mr & Mrs H. felt they would get a better price and sell quicker, something that was important to them as they wanted to move closer to their family who lived over 200 miles away.

The bank only consider applications based on credit score. Whether or not Mr H. bought a PPI policy or not should not have mattered to the success of his loan application. The bank representative was wrong to suggest this.

Has this happened to you? Do you have a claim for PPI compensation?