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Archive for tag: PPI Deadline Quiz

PPI Deadline Quiz Part 2: PPI and Time

Not sure about all the timescales that are often talked about when it comes to making a PPI compensation claim? Work your way through our quiz and see if you have the facts you need...

1. Ben took out a credit card 14 years ago when he started out as a self-employed plasterer. He has since discovered he has PPI on the account. He thinks he cannot make a claim as the account is 'too old' - TRUE or FALSE?

2. John had a second mortgage for £20,000. He made his last payment on the loan 8 years ago. He can make a claim - TRUE or FALSE?

3. Heidi has received a letter from her bank, inviting her to make a claim for PPI compensation. She has 3 years from the date of the letter to make a claim.TRUE or FALSE?

The Answers

Check the answers out below to see how you did in our quick PPI Deadline Quiz:

1. There is a lot of talk about deadlines when it comes to PPI but Ben can make a claim on his credit card, therefore the answer is TRUE. Even though the account has been open for 14 years, it is still an active account and so he could be entitled to quite a large amount of PPI compensation. PPI on credit cards is the most notorious as the premiums were often calculated as a % of the amount outstanding on the account each month. This meant that PPI premiums add a significant amount to the debt each month (and you paid interest on it). How much Ben could claim back is dependent on how long he has had PPI on the credit card account for and how much he used his credit card. Some credit card account holders have received thousands of pounds back as their accounts were often up to the limit. And finally, being self employed meant Ben was not covered by the PPI anyway... unless he ceased trading as a result of illness etc. which the Financial Ombudsman Service have 'ruled' is too onerous a condition.

2. Jon may struggle to claim back PPI on his second mortgage as the account needs to have been active within the previous 6 years; technically the answer is FALSE. However, we do not have the full facts and details of the account and whilst PPI Scotland does not encourage people to make disingenuous claims (that is, false claims) we would strongly suggest that John write to his second mortgage provider with full details as to why he should receive PPI compensation. However, with banks and lenders already paying out billions in PPI compensation, the likelihood of John receiving any monies is slim.

TRUE! If you receive a letter from any of your banks or lenders, then you MUST check all your accounts carefully and if you see anything that looks like a PPI type policy on any of your loans etc. you MUST make a claim! Banks were told last year by the then Financial Services Authority (replaced by the Financial Conduct Authority) to write to all customers, encouraging them to check their accounts and make a claim. If you receive this letter and leave it too late, you will not be able to make a PPI claim from that lender - even if it is a genuine one!

Think you have a PPI claim? Don't wait any longer - contact Payment Protection Scotland today!