What is PPI and why has it been mis-sold?

Payment Protection Insurance or PPI is a type of insurance available when you take out a loan, it’s designed to protect you from going into arrears if you cant make a repayment for a specific set of reasons. Fundamentally it’s a great idea and one you may seriously consider if offered it, however, you may have been paying for it already without knowing.

Up to 20 million Payment Protection Policies have been mis-sold as part of loans either without the consumer knowing or without the full details being explained. If you have taken out any of the following in the last 10 years, whether you’re still repaying or not, you may be able to reclaim thousands of pounds back in compensation:

• Mortgage
• Personal Loan
• Car Loan
• Secured Loan
• Consolidation Loan
• Credit Card

The common mis-sell of Payment Protection Insurance (PPI) is it’s inclusion in a loan agreement either on a compulsory basis or without notification, the result is you may have been paying too much for a policy you don’t even know you have.

If you would like to find out if you’ve been mis-sold PPI, call us now on Freephone 0800 031 6078 or fill out our super quick form. Remember most people we speak to think they don’t have PPI, when they do!

How do I know if I’ve been mis-sold PPI?

It’s not just the concealment of insurance policies within loan agreements that’s the problem but also the sale of inappropriate policies to ill-advised consumers. Severe bad practice from Loan providers has resulted in up to 20 million consumers being mis-sold Loans, Mortgages, Credit Cards and Car Finance and here’s how to tell if you’re a victim:

Key points to consider:

• If you were self-employed, unemployed, redundant or retired when you took out the loan? If you’ve paid or been paying for insurance that provides unemployment cover and the provider knew you were not in need of it, you have been mis-sold.

• Have you had a medical problem in the past? Most policies won’t cover you for medial conditions you’ve had in the past. If this wasn’t made clear to you or were never asked about your medical history, you may have a claim.

• Has your provider already been fined for mis-selling? This is a simple way of gauging how likely it is you have a claim. Many providers have already paid out on claims and been fined for mis-selling.

• Were you sold a ‘single premium’ loan policy? This type of policy puts a lump sum on your loan amount at the beginning of the repayment term to cover the insurance. If you have had or do have one of these you may have a strong reclaim opportunity.

• Were you given full details of the insurance? This really covers the whole problem with mis-sold PPI. As a responsible lender, your loan provider should have told you about the full T’s & C’ of your loan insurance policy, if they didn’t, you have been mis-sold.
• Have you borrowed any of these from any of these lenders:

If ‘yes’ then there’s a strong chance that you have a PPI policy as all of these lenders have been fined by the Financial Services Authority (FSA) for mis selling PPI. If you’re unsure whether you have a PPI claim or want to get your reclaim started, simply fill out the secure online form or give us a call now on 0800 031 6078.

Can I claim if I have an IVA?

YES. Loans, credit cards and other borrowings that you’re repaying through an IVA may have PPI policies attached and you can still receive a refund if they’ve been mis-sold.

How long does a payout take?

Every case is different and payout times will vary depending on when you took out the borrowing, what paperwork you have, how quickly the lender or insurance provider replies. Our team deals with our end of the case as quickly and efficiently as possible and have won payouts in as little as 3 weeks but yours could take 3 months or longer, so be prepared for a wait.

How much will I get?

This varies depending on how many policies you have, how much you borrowed and how much the insurance provider charged you for the worthless cover. The FSA believe the total compensation needed to refund mis sold PPI victims is close to £4billion. The consumer watchdog, Which? estimate that around 2 million policies have been mis sold, combine these two figures and you have an average payout of £2000. Of course, yours could be less, but it could also be more. The only way to find out, is to make a claim.

What are the costs of claiming?

It costs absolutely nothing to make your claim through PPIClaimsUK. Unlike some companies, we think it’s your right to make a claim and you shouldn’t have to pay to do so. If you choose to let us fight your case, then your claim will be handled on a No Win No Fee basis. If we win, we charge 25% plus VAT of the payout amount, if we don’t win, you pay absolutely nothing. Here’s the Ministry of Justice Fee breakdown that we adhere to:

Can I make a PPI claim against a policy that has expired?

YES, whether you cancelled a policy or finished paying back the loan, you can still make a claim.

Can I make a refund claim against a PPI policy which I have actually used?

YES, even if you’ve made a successful insurance claim through the policy, you can still make a PPI refund claim.

How far back can I claim?

If you have taken out a Mortgage, Loan, Credit Card or Car Finance in the last 10 years, there’s a good chance you’ve been mis-sold PPI, even if you’ve re-mortgaged, paid the debt off or defaulted. The strength of your claim depends on a number of factors and is determined by your own individual circumstances. Below are three typical scenarios that we come across with mis-sold consumers, see which one best describes your situation:

- Your policy started in the last six years – It doesn’t matter if you’re still using it or not, You can make a claim.

- Your policy started over six years ago –  If you’re either still paying it back or it ended within the last six years, You can make a claim.

- Your policy ended over six years ago -  Banks only have to keep the last six years paperwork, but if you have the loan agreement, You can make a claim.

How do I know if I’ve been paying for Payment Protection Insurance?

1 in 3 people in the UK have some form of Payment Protection Insurance (PPI); despite this the vast majority we’ve helped to reclaim their money were unaware they had been sold an insurance policy as part of their loan.

But how does this happen?

Many Banks and Building Societies only provide quotes based on the ‘with insurance’ figure and fail to mention that part of the cost is for PPI. With sales patters like “the fully protected loan will cost…” it’s no wonder that you may have signed up for a policy that you were completely unaware of.

The first step towards finding out if you have been mis-sold PPI is taking a look at your original loan agreement, if you have PPI it should be shown in the breakdown of payments section. If you don’t have your agreement or you’re unsure about what it says, you can call us on Freephone 0800 031 6078 and speak to a one of our friendly advisors about getting your completely FREE – NO OBLIGATION assessment.

I was told I had to take out Payment Protection Insurance to get the loan – was I mis-sold?

If you’ve applied for a Mortgage, Loan, Credit card or Car Finance and been told by the provider that you must also have an insurance policy from them; then you could have a claim. By subscribing to the Banking Code your lender has agreed not to insist upon forcing consumers to take insurance in order to get the loan or card and is therefore breaching regulations.

Like anyone buying a loan product, you rely on the salesperson to provide accurate and trustworthy information to ensure you are fully aware of what you’re agreeing to. If you were required to take out an insurance policy or unable to opt out of it, then you have been mis-sold your policy.

To find out if any of your debts have a compulsory PPI policy, call us now on Freephone 0800 031 6078 and speak to a member of the team about getting your FREE – NO OBLIGATION claim assessment. We’ve said it before and we’ll say it again… most people we speak to think they don’t have PPI, when they do!

Did I need unemployment cover when I took out Payment Protection Insurance?

A major selling point of PPI (if it’s sold properly) is the unemployment cover it provides should you find yourself out of work with payments to make. But this is only suitable if you were working at the time you took the policy out; if instead you were any of the following then it’s possible you’ve been mis-sold PPI:

• Retired
• Unemployed
• Worked under 16 hours per week
• Self-employed
• Full time Student
• Stay at home parent

Due to a pressured selling style and uneducated sales staff, you may have been inappropriately sold unemployment cover as part of a PPI policy without being fully aware of the terms and conditions.

My lender says I have already paid for my PPI and won’t give me a refund.

This is a common complaint from consumers who signed up to a ‘Single premium’ or ‘Front Loaded’ Payment Protection Insurance (PPI). With these policies, all of the interest for the PPI is calculated and added to the loan amount as a lump sum at the beginning of the term.

Under the regulations set out in the Banking Code, your loan provider has a duty to provide you with the best product for your situation, based on your best interests. If you’ve been sold a Single Premium PPI as part of a loan and weren’t made aware of the alternative ‘pay monthly’ insurance options, you can claim a refund.

If you’re unsure whether your policy is a ‘Single Premium’ or want to start the process of claiming a refund, call us now on Freephone 0800 031 6078 and take the first step to getting Your money back.

There is insurance on my loan but it’s not called PPI, is it the same thing?

Although often referred to by the media as Payment Protection Insurance or PPI; loan insurance is also known by a number of different names. These include:

• Guaranteed Asset Protection (GAP)
• Accident Sickness unemployment (ASU)
• Personal Loan Protection (PLP)

Different names are used depending on the provider and the loan product being sold but generally all do the same thing, with the exception of GAP insurance which is specifically issued with Car Finance. Whatever it’s called, if it’s been mis-sold then you’re owed a refund, give us a call on 0800 031 6078 to get your free, no obligation claim assessment.