Glasgow: 0141 844 0017 * Edinburgh: 0131 224 0094 * Lanarkshire: 01698 286 463

Quick PPI Questions and Answers

Have a quick query about PPI that you need answering? We have collated some of the questions we are asked and asked our team to come up with quick answers to them.

Questionsandanswers

How far back can a claim be made? I had a car loan a few years, with PPI - will the bank contact me?

The bank may contact you as they are being 'advised' by the Financial Conduct Authority to do so. The easy rule for PPI compensation claim is that if the loan was active in the last 6 years (that is, you were making payments on it), then you could claim. However, there are always exceptions to the rule so if you have a case, why not make a claim?

We have a £7,000 personal loan with Lloyds and were mis-sold PPI on it. How much compensation would we be entitled to?

Without knowing all the details, it would be difficult to be completely accurate but between £1,500 and £2,000 would be a guesstimate. This includes interest at 8% but you could be entitled to more with fees and costs added. And then there is the possibility of commission payments on top.

I am still paying for a PPI insurance product on my credit card with a well-known high street store that also offers banking facilities. I don't recall agreeing to it. Do I have a claim?

The first thing you need to do is look at the details of PPI and see if it covers you. You may also want to look online to see if you can get a better deal from another insurer. Lenders rarely sell PPI these days and so we would need to know more detail about this.

I have an EGG credit card, can I claim?

Yes you can. EGG was one of the companies fined in the past for slow payments etc. so always worth striking while the iron is hot. But EGG itself no longer exists but Barclays bought the company and so they are responsible for refunds.

I have been made bankrupt, can I still claim compensation for mis-sold PPI?

Yes you can, although there are circumstances that you will need to be aware of. For example, you may not receive compensation if you claim is successful, as the money may be used to pay off your debts etc. Cases of debt and bankruptcy when seeking PPI compensation need not be complicated but it pays to get thorough advice on the best way to proceed from an independent source and debt specialist.

We bought a new car through a financial firm who told us that PPI was essential, or we couldn't have the car. Is this mis-selling?

It sure is! The purchase of PPI has never been compulsory!

I closed my credit card and paid it off. Could I still claim?

Whether the account is closed or not is irrelevant. You can claim compensation for mis-sold PPI if it was actually mis-sold to you and the policy was active in the last 6 years.

Your 3-Minute Guide to Claiming Compensation

It is still possible to claim PPI compensation but there is a deadline looming. August 2019 may seem a way off yet, but you need to make a decision, and make it now, about whether to claim your money back or not. Can you afford to lose out?

Guide

What is PPI?

It is aspecific type of insuranceproduct that was sold alongside credit agreements including mortgages, personal loans, credit cards, hire purchase agreements, car finance, catalogue accounts, store cards and many other kinds of credit.

It was designed to protect you as the policy holder that in the event that you were unable to make your monthly repayments on the loan, the policy would do it for you.

But was mis-sold thousands of times over to thousands of customers and you could be one of them.

Why is the PPI compensation saga still running?

The reason why the saga has lasted so long is linked to many reasons - one is the fact that34 million PPI policieswere thought to have been sold in the UK. For many customers, they don't realise they have a claim for compensation, as they didn't know they had been 'sold' it in the first place.

The mis-selling problem

Theway in which the PPI policy was presentedto you at the time it was sold may be an indication of whether you were mis-sold it or not.

In some cases, the debate as to whether you were mis-sold the product or not is can actually be complex thus it is important that, if you are unsure, you seek advice.

However, in the main, many customers were…

  • Told the purchase of the PPI policy was compulsory
  • NOT told the limitations, terms, conditions and exclusions of the policy
  • Not told of their eligibility to claim via this policy - in other words, many people were unable to claim on the policy, as they simply were not eligible. Would you have bought it, knowing this?

But the worst case scenario was when some customers, clearly making an emotional decision to borrow money - how nervous were you about securing car finance for the much-needed more modern, reliable family car? - were told that they were more likely to be accepted for finance if they took out the policy.

Claim it back

Don't let the bank or financial institution get away with it. Make sure that you check all the necessary paperwork today for any signs of PPI - should it be on there? Does it cover you for repayments on the loan? Are you eligible to claim?

If not, the chances of you having a claim for compensation are high so why not let Payment Protection Scotland help?

Important PPI Questions That Need Answering

Many people have question regarding payment protection insurance (PPI) and here we answer just a few of them. If you have a burning question about how claiming back your money work, then contact us to find out more…

Question 1

Q. Who started the whole PPI compensation ball rolling?

The exact name is lost in the midst of time (they may also want to remain anonymous!) but a lone customer noticed that PPI had been added to their account. On looking in to what the policy included (and, more importantly, what it didn't include) the customer decided the policy was of no use to him.

However, on trying to cancel the policy he was surprised, if not shocked to find, that the bank insisted that the carried on paying for the policy even though he was not covered by its terms and conditions!

He reported the issue to the Financial Ombudsman, complaining to other consumer organisations too.  There had already been talk about PPI and how it was being 'sold' to customers.

These events eventually kick started a whole series of arguments that ended in the wholesale compensation process that the banking industry now finds itself in.

Q. How much is the current PPI compensation bill?The London Olympics cost £12 billion and the PPI bill has now gone past this figure. Experts suggest that if everyone who is eligible to make a claim does so, then the bill could be £30 billion or more.

In fact the PPI compensation bill has just hit £30 billion and there are predicted to be many more PPI claims to come.

Q. What is commission and how does it affect PPI compensation?

There has been a lot in the news about this recently since Susan Plevin won her case regarding the payment of commission to the insurance broker who arranged her loan and PPI policy.

This argument had nothing to do with PPI for being mis-sold but the fact that Ms. Plevin would have queried the cost of the product if she had known how much was being paid in commission to the broker.

The Supreme Court agreed, and the Financial Conduct Authority has now translated the ruling that anyone who paid more than 50% in commission and was not told is entitled to claim their money back, irrespective of whether PPi was mis-sold to them or not.

Bear in mind that the average commission payment to a broker was 67% of the cost of the loan, and you can see why this could bump up the final PPI compensation figure.

Q. How do I know that what the bank are offering me is the correct amount of PPI compensation?

As part of our comprehensive service, we examine and assess any offer made to your by your bank or lender, comparing it to our own calculations. If we think you are being under-paid, such as through alternative redress or not being reimbursed for the fees and costs paid by you as a result of PPI being charged to your account.

STILL Don’t Think PPI Compensation is Yours to Claim?

Mr. O, a widower, had seen the headlines relating to the mis-sale of PPI. But like many people, he assumed that it was something that applied to everyone else.

However, after being persuaded to make a claim with the bank he had banked with for 30 years or more, he was startled to discover that he had been mis-sold PPI. He received £2,033.45p in PPI compensation, a welcome boost to his state pension payments.

Like many other customers, he followed the same pattern to make a claim to get his money back. And this is how…

Money

I. Find the information

The banks and lenders can be more helpful when it comes to furnishing customers with the information they need, than what they were a few years ago when the scandal broke but, it still pays to know the law and your rights.

Banks have to keep paper copies of agreements and original documentation for at least 6 years hence, if your account is fairly recent then they will still have paper copies. But many banks hold digital information too.

As Mr.O found out, the banks do know who they mis-sold PPI to. And he was one of them.

II. You may have more information at home that you think!

Old banks statement, both paper copies and electronic ones can also be a great source of finding the basic information you need to complete the form.

Even if you cannot supply ALL the information, simply completing the form telling them you had an account with them and you believe you were mis-sold PPI is enough to kick-start the process.

Mr.O couldn't remember everything about when he took out the two personal loans but he didn't remember discussing insurance. He had other insurances too when he was working to cover the household should be become too ill to work etc. the likelihood was he was already covered.

III. Burden of proof

Many people worry about the burden of proof when it comes to PPI compensation, but it really is not complex or something to be worried about.

There are many, many reasons why PPI was mis-sold to people including the fact that many customers were NOT told it was being added to their account!

If you are unsure about answering the question, 'why do you believe you were mis-sold PPI?' stating that you were unaware that PPI had been added to your account is sufficient.

This is what Mr.O told the bank. He couldn't remember explicitly agreeing to PPI. Although the bank have compensated him, in their compensation letter, they don't say why they are compensating him. The most probable reason is that PPI was simply added to his accounts without him knowing - and the bank know this!

Once you have completed and returned the form, it is down to the bank to begin their investigations to refute or agree with your claim. We can help too. Why not give us a call?

Do You Have Questions About PPI?

Many customers have many questions about the process of claiming back payment protection insurance (PPI) premiums, as well as many other concerns. In this blog, we look at some common questions and concerns. If you need more information or clarification, just contact the team at Payment Protection Scotland.

Questions

Can I make more than one claim with Payment Protection Scotland?

Yes, you can! Each account on which you have PPI will constitute a separate claim from your lender and there is no limit as to how many claims you can make. After all, it is your money…

But do I pay twice as much?

No, you don't. If you make all your claims for PPI compensation at one time, you pay a % of the total amount awarded rather than a % on each PPI compensation settlement you receive.

Can I make a claim on a loan or other account that has been 'paid off' and closed?

Yes, you can, there is nothing stopping you only deadlines based on consumer law. You will need to have been making payments on the account within the last 6 years, as set down in consumer law.

Is there a maximum amount that can be claimed?

No there is not as it is entirely dependent on how much you borrowed, over how long and how much the PPI was charged at.

The average PPI claim has been estimated to be around £2,750 but you could be able to claim back much more than this, or it could be a lot less. Once we have your full details and information, we will be able to provide you with a more accurate figure of how much compensation you could claim back.

How does the Payment Protection Scotland process work?

Once you have contacted us, we will gather a variety of information and detail from you, including the lenders that we need to contact on your behalf. However, before we can do that, we will need written permission from you allowing us to act on your behalf, contacting your bank or lender as a part of the whole process.

These forms will be sent to you and once we receive them back from you, completed and signed, we can really begin to progress with your claim.

How long does it take to get my compensation settlement?

Providing we have the paperwork, signatures and all the relevant information needed, and your bank or lender does not contest your claim, they will hopefully make an offer quickly. There are deadlines by which the bank or lender must respond to your PPI complaint and a timeframe within which they must resolve your case.

How will the PPI deadline be enforced?

Customers wishing to make a claim for mis-sold PPI will need to do so by 11.59pm on 29th August 2019. This relates to complaints about PPI sold before the summer of 2017. Any policy sold after that will be handled separately.

It applies to everyone and so if you want to claim your money back, don't delay - claim today!

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…

Paperwork

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?

Are you missing out of money with your name on it?

If you knew, with certainty, that you were owed thousands of pounds, what would you do? Not bother or claim it back as fast as you could?

Money

The likelihood is you would claim it back. With only a simple letter, you could claim back compensation for mis-sold payment protection insurance (PPI)… and this could be worth thousands of pounds!

How to claim PPI compensation

Claiming compensation for mis-sold PPI is straightforward. What can present difficulties is when the bank or lender deny your claim or eligibility.

There are ways that this can be challenged.

Steps to Claiming PPI compensation BEFORE the 2019 PPI deadline

In the first instance, you need to do the following…

Check ALL accounts

PPI was added or sold to customers on them opening a variety of credit facilities, such as catalogue accounts, car finance, unsecured or personal loans and, in some cases mortgage too. Credit cards were also commonly targeted by banks but any account in which you borrowed money could be affected by PPI

Know what you are looking for

PPI is a generic name for an insurance policy that promises to make repayments on the account should you be unable to do so due to illness, unemployment etc. Different banks or financial companies called their PPI type policies different names; if you are unsure, call PPI Scotland for help.

Why were you mis-sold the policy?

This is the next question you need to answer as part of the whole claiming PPI compensation process. In order to successfully make a claim, you not only need to identify you have PPI, but you also need to prove that it was mis-sold to you. There are many reasons why PPI was mis-sold to customers, from not being told about the exclusions under the policy to not being told that about the policy at all!

Payment Protection Scotland can help you understand why you were mis-sold PPI as these reasons are important in claiming your compensation back.

Put your letter together

For many people, they find this difficult or and not so confident in dealing with banks or lenders. PPI Scotland can help you put together your compensation claim letter, full of detail. Send it off and wait to hear back…!

But, if they say NO…

This is not the end of the PPI compensation story. You still have one more avenue to explore and this is asking the Financial Ombudsman Service to look at your case and make the final decision. Our team will guide you through this process.

IF you try to claim PPI compensation AFTER the 2019 PPI deadline

Unless the policy was sold to you after July 2017, you will no longer be able to claim your money back. Can you afford to take the chance?

Claiming PPI compensation is something you can do if you have been mis-sold PPI… after all, it is YOUR money!

What will you spend your PPI windfall on?

Claiming payment protection insurance compensation is something that thousands of customers have already done successfully. With the recent FCA awareness raising campaign about PPI and the 2019 PPI deadline also taking effect, it seems that many more of us are also prepared to claim our money back.

Spend

And there are plenty of great stories to spur us on like the customer who enjoyed and £84,000 PPI settlement cheque!

How much could you claim?

The amount you could receive is based on several variables:

  • Thenumberof accounts you have with PPI
  • Howlongyou had the policy
  • Howmuchyou paid in premiums
  • Theinterestcharged
  • How muchcommissionthe broker was paid

As these vary from case to case, it can be hard to accurately provide an estimate without knowing a case in detail but, after researching the PPI compensation scandal, the Financial Conduct Authority estimated that the average pay out was around £2,700.

Imagine what you could do with this windfall?

In an attempt to answer this question, several consumer organisations including a well-known voucher discount site have conducted a survey to find out where and how people are spending their PPI compensation monies…

  • Nearly ¼ spent some or all of their PPI windfall on a much-needed holiday
  • Around 20% of people put the money towards a newcar
  • Following close behind was buying newhousehold appliances
  • Many people however (17%) spent their PPI compensation oncatching up with bills
  • 13% decided to indulge inupdating their home furnishings, decorating etc.
  • 12% of people were incredibly sensible and decided tosaveall or a portion of their PPI compensation
  • A tenth of people had a great timeshoppingfor the latest fashions!
  • Gadgets and gizmosare hard to keep up with, especially as the pace of change is so fast - to this effect, 8% of people spent their money on updating their technological gadgets
  • A smaller portion of people enjoyed shopping and wearingnew shoes
  • And, not surprisingly considering the increase in cost of living and the recent recession, 3% of those in receipt of a PPI compensation cheque enjoyed grocery shopping

The economy is also enjoying this injection of money into it, with the PPI compensation being worth around £13 billion thus far… and it keeps growing!

Have you claimed your slice of PPI compensation yet?

The PPI pie is still full of cash - banks and lenders have paid out £30 billion in compensation thus far - with all the major banks still adding more money to their compensation pots, ready to make repayments back to customers

Are You Sure You Know HOW to Claim PPI Compensation?

Even though the whole PPI mis-selling saga has been around for some time now, there is a PPI deadline looming. Backed by the advertising campaign from the Financial Conduct Authority, customers are being urged to make a decision about whether to claim or not.

know_how

And it appears that we are! The total PPI compensation bill has just topped £30 billion, and there has been an increase in cases being opened too. Let's recap on what you need to do to get your money back.

The wrong way…

Not doing anything- you could be missing out on claiming thousands of pounds of your money

Not checking accounts forPPI- some people are so convinced they don't have PPI, they don't look at any accounts for evidence. Some customers attempt to make a claim without checking first, wasting their time and the banks when it becomes apparent that there is no PPI policy to compensate.

And so, the RIGHT way to make a PPI compensation claim looks like this:

BEFORE you do anything, take a look at each and every single account on which you had credit to check for a PPI type policy - don't forget that PPI or payment protection insurance is a generic name for any kind of insurance policy that promises to make repayments if you cannot.

Check accounts such as:

  • Catalogue accounts
  • Credit cards
  • Car finance
  • Personal loans
  • Secured and unsecured loans
  • Mortgages
  • Store cards

It is always 'easier' to make a claim for PPI if you offer proof in the first instance that shows you have the policy on your account. Policy numbers are the solution in this case. If not, provide the bank with as much information as possible.

As part of your complaint, you also need to tell them WHY you feel you were mis-sold PPI. There are many reasons, such as;

  • You were given the impression it was compulsory
  • You were told that your application for credit was 'more likely to be accepted' if you opted for PPI
  • You were not told that there were exclusions in the terms and conditions of the policy that meant any pre-existing medical conditions, for example, were not covered
  • Some conditions and illness were not covered by the policy, such as mental health illnesses or back pain etc.
  • You were self-employed or retired when you were sold the policy (the policy did not cover people in these circumstances

Don't take NO for an answer! Many customers think that if the bank says no, there is no way they can go on to challenge this response but there is…

… and Payment Protection Scotland know what this is - so why not call us to find out more?

The Bank Said Yes!

We hear a lot about hat you can do if your bank or lender says no to your PPI compensation but what happens when they say yes? Does a cheque arrive in the post? How do you pay us for our services?

yes

Will I always get a cheque? I bank online and it takes longer for a cheque to clear in my account

Some banks and lenders will pay PPI compensation monies directly in to a bank account. In most cases, when your bank writes to you to confirm they are compensating you for mis-sold PPI, they will tell you how they will do this. They may say they will pay into your bank by a certain date or send a cheque.

BUT…

Some customers do find that their PPI compensation is paid directly in to their bank and whilst this may be a very welcome sum, how do you know that this is the correct amount?

In recent months, it has been highlighted that some banks are using a little-known loop-hole to avoid paying the customer the full amount.

As soon as you receive you PPI monies, or an offer of payment, always let PPI Scotland check the amount so if there is a discrepancy, we can look to rectify it with the bank as soon as possible.

When do I pay Payment Protection Scotland?

You only pay us if your claim for PPI compensation from the bank, lender etc. is successful and, depending on the number of cases we complete on your behalf, you will pay a % of the amount you collectively receive. We will work this out for you and send an invoice. You pay us when you receive your PPI monies - and not before!

The bank has offered me a certain amount of PPI compensation but how do I know this is the right amount?

There is a way of calculating how much is owed to you, including interests,fees and costs for example, as well as the total sum ofpremiumsyou have paid over the years for the PPI policy.  There is also the issue of commission payments to consider as well. If you paid more than 50% commission to the person who arranged the PPI policy and were not told, then you can claim this money back too.

On the whole, banks are attempting to put right the wrong of mis-selling this policy and are compensating the full amount due to its customers.

Again, as a valued customer here at Payment Protection Scotland, we ensure that all offers of PPI compensation made to our customers are checked against our calculations… but, the decision whether to accept an 'offer' or not is entirely down to you!