The above is one of the most common questions that we hear from our customers. In this article, we will gladly answer it and provide an insight into how you can make a claim.
Payment Protection Insurance (PPI) is an insurance product, presented by major banks, to protect consumers in case of their inability to meet the debt payment in the event of a life crisis.
Formerly at an appropriate time, PPI used to be an excellent product. However, over the years, the banks realized its profitability and, therefore, pressed their employees to sell the insurance. Disappointingly, the PPI selling turned out to be useless and uncertain for customers.
Consequently, the number of mis-sold PPIs increased to thousands of policies. As a result, there came a terrible scandal, which led to bank fining and insurance refunds. It cost banks over £19 billion in total to pay for the mis-selling scandal.
The process of mis-sold PPI reclaiming has lasted for about a decade. The total sum paid to customers by banks is over £32 billion.
Aiming to recover from the scandal and encourage people to make a claim, the Financial Conduct Authority (FCA) decided to set a PPI claims deadline by 29 August 2019. In other terms, claiming by that date is obliging.
Therefore, the burning issue of the day is how to get to know that your PPI was mis-sold.
How Do I Know If I Have PPI?
Your initial action is to check your PPI existence so you can inquire whether there is a mis-sold PPI on any of your financial products. It includes:
– Credit cards;
– Personal loan;
– Secured loan;
– Car dealership finance;
– Store cards;
– Catalogue credit;
– Monthly paid insurance;
If you have doubts, or probably cannot remember the name of your bank or lender, there are credit report checkers, such as Experian, where you can find the information about your previous loans and credit cards.
If the documents for these financial products are accessible, you may look for PPI mentions there. Note that it might list as:
- Payment cover;
- Protection plan;
- Loan care;
- Accident, sickness, and unemployment (ASU) cover, etc.
In case you do not have the required documents, you have to contact your bank or lender. If your product has been active within the past six years, they will be able to identify the PPI on this product.
After six years, the bank may stop maintaining your account details. Where it happens, apply to your creditor or PPI claim company to check whether PPI added to your account.
To locate consumer’s past and present debts, which may include the PPI, the leading claims companies use PPI software. The only necessary information for it is a name, address history and bank, credit card, or financial company name.
How Do I Know If My PPI was Mis-sold?
The PPI mis-selling tactic is quite widespread, and automatic add-on without customer knowledge is just one of the ways. As in the case when you find the PPI on your old account but you are sure you have not confirmed it.
If any of the following seems familiar to how your PPI was sold, it could mean that you are eligible for a claim.
Have you received a coherent picture of your PPI expenses and benefits?
It is up to consumer’s rights to ascertain the additional expenses to their loan or debt and possible benefits to make a favorable and conscious decision about the product. Most frequently, the consumers, who became involved in the scandal, have not been knowledgeable about the required information.
In particular, the bank may conceal the commission it receives on a PPI policy. There has been a landmark case with Mrs. Plevin, where a subnormal commission fee turned out to be another way of PPI mis-selling. Due to it, if your commission fee goes beyond 50%, you should make a claim. In case you get a rejection, make another claim, referring to the exaggerated commission or the “Plevin case.”
Have you been aware that PPI is optional?
PPI is not compulsory! Although there exists an opinion among the consumers that the PPI is mandatory, you need to know that you can take out a loan, mortgage, or a credit card free from it. However, there have been incidents when people refused to take out a product but still could not avoid PPI payment.
Are there any vital limitations in a policy that may affect you in case of the claim submitting?
There are, indeed. These limitations include the issue of age, employment, and already-existing medical conditions. Having discussed or set these limitations in advance, you will prevent yourself from the inability to use the insurance afterward.
If you face any of the above situations, you should bring a case against the banks and file a PPI claim.
How Do I Know if I Had PPI on More Than One Policy?
According to some sources, some banks did not inform customers about multiple PPI policies and policies’ existence at all, though, it is not quite so.
We strongly recommend our customers to contact their banks and acquire all the necessary information about any policies on financial products. Dealing with claims in Canary Claims, we always inquire about several policies as far as we know that our customers may have beyond one. Considering that there are around 64 million PPI policies sold in the UK, there is no wonder that some consumers may have a few.
After being acquainted with each paragraph, you will be able to identify whether you PPI mis-sold. The sooner you claim your PPI — the better. Take your time, but be sure to do it ahead of the deadline.