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Archive for tag: PPI Myths

One of The Most Common PPI Myths

There are many myths about the payment protection insurance (PPI) mis-selling scandal. Here we try and help you out, by explaining the most common PPI myth:

No Paperwork means No PPI Compensation Claim

Such a common myth, it is one which sees many people not even attempt to make a claim to get their money back from their bank, building society or lender.

Here Payment Protection Scotland explains that this is NOT the case…


Option 1: Look again!

Not many people keep all the paperwork for all accounts, especially if the accounts are now closed. But, looking again to find any piece of useful information that either you or Payment Protection Scotland can use in claiming back your money on your behalf would be a distinct advantage.

Account numbers, for example, are incredibly useful.

Option 2: Contact the lender

At one stage in the whole PPI mis-selling debacle, banks and other lenders were unwilling to help the customer and this meant they didn't freely give the information customers needed to claim their cash back.

However, times have changed. With various consumer organisation and regulatory authorities chomping at their heels, financial institutions are realising the error of their ways. In other words, they are now giving this information to consumers more readily than previously.

In fact, some banks and building societies are now encouraging customers to make claims, all in an effort to win back trust and a positive reputation.

Option 3: You receive a letter

Back in the spring of 2012, banks and other lenders were told by their regulatory authority that they needed to alert the customer that they may have been mis-sold PPI.

Many people will know have received this letter and if you have, you should use this opportunity - whether you have paperwork or not - to ask for PPI compensation if you are entitled to it.

Some financial bodies have included forms in this letter, which they invite their customers to complete and send back to them. This notifies them that you believed you have been mis-sold PPI and that they need to look into this, providing you with an answer, with an explanation.

UPDATE the deadline on these letters is due to expire very soon. If your bank has written to you, you must make a claim soon.

Option 4: Credit rating agencies

There are various credit rating agencies that gather and keep the financial information that is used to provide you with a credit score. Some of these agencies also keep records and details of any loans that you may have had in the past, including some of the details of the package such as interest rates and other financial products you bought alongside the loan, including PPI. There is a fee for this service.

Payment Protection Scotland can help you too! Why not call us to find out more?

Common PPI Myths

Looking to make a claim for mis-sold PPI? If so, you need to be aware of some common myths about making a claim and how they could affect your claim.


There is no mystery - payment protection insurance (PPI) policies were was mis-sold on a scale never seen before in the UK banking industry. It didn't affect just one or two banks, or a few hundred customers - it was an issue widespread across most, if not all banks, lenders and financial companies in the UK. And the number of customers affects was millions.

If you had a loan, credit card, store card, catalogue account or any product in which you borrowed money from a UK financial institution from the mid-1990s until 2010, you were probably 'sold' PPI.

But there are still some myths circulating about claiming back PPI but what do they mean for your claim?

I agreed to it, so I can't it claim back

There are many customers who think that because they agreed to the PPI policy being added to their account that they are unable to claim back the PPI payments they have made.

If your bank or building society has told you this, you simply must contact PPI Scotland as this is not the case! The terms and conditions in many cases, were not fully explained meaning that you may not have been fully aware of what you were buying.   

The bank said it was suitable for me, so the bank has rejected my claim

This is something called advised sales and have now been modified. Previous to the PPI mis-selling scandal, advised sales were usually verbal. In other words, the customer was under the impression that the bank representative talking to them and advising them to invest in PPI, they assumed that they had their best interests at heart - meaning, that the customers bought the policy in good faith.

There's no point taking my claim to the Financial Ombudsman unless I have 'new' evidence of mis-selling

No, this is not the case. If you feel the bank have unjustly rejected your claim, you can take your case to the Financial Ombudsman and ask them to make the final decision. They are still upholding in favour of the customer in the majority of cases, although they do say that PPI claims are becoming more complex.

I can't claim PPI compensation on catalogue accounts

Many people were 'sold' PPI on their credit account with many well-known catalogues. These accounts were backed by major banks and lenders, and often serviced separately to your catalogue accounts, although you may not have realised. But yes, you can claim PPI compensation if the policy was mis-sold on catalogue accounts.

With a high success rate and experience, as well as specialist inside knowledge when it comes to claiming PPI compensation, simply call us to find out more - it will be the best phone call you make!

PPI Myths in 2017

The mis selling of PPI on loans, credit cards and mortgages has had extensive media coverage. The product that we were told would cover us in the event we couldn't make loan repayments as a result of redundancy or illness was, for some people, of little or no use.

PPI policies were sold to customers on a series of myths and fallacies, with key information omitted from the conversation (if there was a conversation…).

Here are top five mis selling myths, and the facts that you need to know when you make your PPI compensation claim BEFORE the deadline of August 2019;

Myth 1 - Some banks and lenders told (or implied) to customers that the purchase of their 'own brand' PPI was compulsory.

Thefact is, that whilst your loan provider can insist you have some form of repayment protection insurance, it doesnot have to be their 'own brand' PPI product.

Myth 2 - Even if you have a PPI type policy in place, you must have a duplicate policy to cover that particular loan.

But thereality was that some customers already had an 'umbrella' income protection type policy which would have offered sufficient cover for the loan or credit card.

Myth 3 - you were more likely to be accepted for a loan if you took out the optional additional loan PPI policy.

Fact - No representative of a financial institution or bank should have implied or made it known to customers that they were more likely to be accepted for a product by taking out PPI. Credit facilities are offered on a credit rating system, rather than preference.

Myth 4 - everybody is covered!

Fact - this is not the case. For example, car insurance providers payout on an average of 80% or more of the claims made BUT PPI policies paid out on only it was 15% of claims made. Terms and conditions of loan PPI policies may not have been fully explained to you, so the 'employment benefit' part of the loan PPI would be useless, for example, to anyone who was self-employed or retired.

Myth 5 - banks will automatically pay back to you the loan PPI payments you have made!

Not true - as a customer, you must make a claim to your loan provider if you think you were mis sold PPI.

If you think any of the above has happened to you, then call Payment Protection Scotland today to see how we could help you.

Claiming PPI compensation – Myths and Facts

Claiming compensation for mis-sold payment protection insurance (PPI) is most circumstances is straightforward. It should not be a complex process but, every now and then, there can be issues that arise that some customers may need help with.

But, as the months march on, there are some myths that perpetuate and so it is important you understand the process, right from the start…

Claiming with a company such as Payment Protection Scotland will mean a compensation claim is resolved quicker

Any claim management company who tells you this is playing on a myth that has sprung up as part of marketing campaigns from many months ago. This is not true as banks and lenders must respond to all queries for compensation within a set time frame. No company can push through any claim quicker than another.

Claiming PPI compensation with a company such as Payment Protection Scotland is a waste of money

Some people are confident and have the time to make PPI compensation claims for themselves. But other customers feel 'safer' in the knowledge that a company such as ourselves can act as an intermediary, a third person in the process that they can find frightening or off-putting. For various reasons, including debt and a poor relationship with their bank, some customers are not confident or happy about dealing with their bank or lender.

Claiming PPI compensation cannot be done if a customer is in arrears or in debt

Again, this is a myth that seems to have grown out of nowhere. And it is not the case. Some people assume that if they are in arrears, that the PPI compensation they claim will simply be wiped off this debt and they will not benefit in anyway. With a claim management company on your side such as PPI Scotland, we make sure that you not only get the right amount of PPI compensation, but that any other fees and costs incurred on your account as a result of this expensive insurance policy being added to it, are also recouped.

You WILL be in a much better financial position as once your account is back in the 'black' and up to date, your credit score will improve.

Claiming compensation with the help of Payment Protection Scotland is smooth and easy

We believe that the customer service experience we offer customers is one of the best in the business. We will help you if you have a genuine and eligible claim for PPI compensation, whether your case is simple and straightforward, or complex - we charge one feeonly.

Isn't it about time you claim the PPI compensation you are entitled to?