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Think You Know Everything About Claiming Back PPI?

Then take our quiz and see how you do!

Everyone has a PPI claim… or do they?

Not true! Claiming compensation for mis-sold payment protection insurance (PPI) is not automaticand just because you have a policy does not mean that you are automatically entitled to your money back. You will need to show that you were mis-sold it.

Puzzle

If you were off work with a bad back, the PPI policy would NOT have covered you

True! There are many exclusions under the terms and conditions of PPI, some of which are better known than others but not at the time that people bought into the policy. In terms of medical exclusions, a 'bad back' were not seen as a reason by which the policyholder could claim on the policy. In terms of more serious spinal injury, you may have been able to.

If you had depression or another mental illness that prevented you from working, you would be able to claim on your PPI policy?

Not true! Again, in the very small print which was easily missed was that some PPI policies did not cover mental health issues or illness. Many people are aware of the debilitating effect that mental health issues have on people and despite all the recent help and raising awareness, the PPI policy was not conducive to helping people in this way.

If it was a joint loan, it was a joint PPI policy?

Again, not true! The PPI policy was usually assigned to one person. If you wanted both of you covered you would pay for an insurance policy each. Many people were not made aware of this at the time of purchase and so when they thought they would be covered by the policy, they found that their claim was invalid.

PPI has a low payout rate?

True! Investigations found that PPI policies paid out in only 15% of cases and when they did, the process was slow and laborious, another criticism levied at the banks and the PPI policies they sold.

Payment Protection Scotland is a leading claim management company

True. We are incredibly popular as a claim management company and successful too. We welcome enquiries from everybody. If you would like more advice on your potential claim, as well as more information on how we can help you get your money back, all you need to do is call us. There is no obligation either!

PPI Mis-Selling Situations

Q. I have PPI on my credit card, which I agreed to buy as I thought it was a good policy to have. I am unsure if I have a claim for PPI compensation. However, at the time I took out the card, I was self-employed although I now operate as a limited company. Do I still have a valid claim?

Chalkboard

Payment protection insurance (PPI) was mis-sold in so many different ways that, even though there are long lists of proven mis-selling reasons, on occasions, it does come down to individual cases and circumstances.

In this case, the successful conclusion to the case would lay in the fact of whether the bank knew you were self-employed at the time they sold you PPI on your credit card. In most cases, the bank or lender would have known, as they would have performed checks to satisfy themselves that you could make repayments on the credit card.

We would need to look closer into the case, as the likelihood is that you would be entitled to PPI compensation and we would be happy to help!

Update: you may also want to consider looking at how much commission was paid to the lender who arranged the policy too. There are cases where more than 50% of the cost of the PPI policy was paid as fees to the broker.

Q. I have a bank account that is permanently overdrawn and I have since discovered that some of the 'fines' I paid were down to the bank taking out PPI premiums. I have read that I may be able to claim back these late fees and fines too - is this a possibility?

This has been in the headlines recently as a claim management company brought it to the attention of the authorities that banks were still picking and choosing which aspects they compensate customers for and which they don't, costs and fees being one of them.

The Financial Conduct Authority and the Financial Ombudsman Service have made it clear that banks and lendersmust compensate customers back to the financial position they would have been in if PPI had not been added to their accounts.

Following this line of thought would suggest that you do have a case for claiming these fees back as part of your PPI compensation claim, however, you would need to discuss this with us in full - why not call us?

Update: banks and lenders are being told they need to take another look at the costs and fees incurred when they added PPI to customer accounts and take the necessary compensatory action.

Q. I have no idea if I was mis-sold PPI! The whole process was a complete blur when it came to the loan that I took out with the bank and I admit, I just signed what was put in front of me…

You are not the only customer who feels this way!

The mis-selling of PPI highlighted that the process of how additional products were sold alongside loans etc. People often felt confused into signing, so much so that the sale of PPI to customers became part of the process, without question. Representatives were no longer pointing out it was a separate product and that it was not compulsory.

The fact you have no idea that you were being sold it, means it was mis-sold and you could have a valid claim for PPI compensation!

Your Easy ‘How to’ Guide for Claiming PPI

The FCA is urging anyone with a PPI claim to make a decision - and that means deciding whether to claim your money back or not. This is our quick, no-nonsense 5-minute guide on how to claim compensation for mis-sold payment protection insurance (PPI) before the August 2019 PPI deadline.

Take -it -easy

Step 1 - Finding out if you have PPI

If you are super-organised when it comes to paperwork and documentation, then this step shouldn't be much trouble. If you have lost paperwork or are unsure what it is you are looking for, then read on.

Knowing a little bit about the history ofhowPPI was mis-sold will help you understand what it is you are looking for.

PPI was sold alongside loans, mortgages, store cards, credit cards personal or unsecured loans etc. Sometimes, customers were told they had to buy but in other cases, it was either part and parcel of the loan or was added after you had taken out the loan. However, it was added to your account(s), if you were told about it, you were probably told what a great product it was.

PPI was sold on the promise that in the event you were not able to make repayments on your loan, the policy would do it for you. This was as a result of a loss of income, such as unemployment or redundancy.

Look for an insurance product that promises to make repayments in the event that you couldn't.

Step 2 - Call Payment Protection Scotland

You don't need to use a specialist claim management company to claim your money back, but many people feel it is the right move for them.

As a leading and reputable company, we have helped thousands of customers to successfully claim PPI compensation. We check that you have a claim and we also check any offers or settlements made by your bank or lender are correct.

The decision about whether you take their offer or not is entirely yours.

Step 3 - If your claim is refuted

Some banks will not honour your claim for PPI compensation. They may say, for example, that it is the most suitable product for you.

You don't have to take their word for it. Either independently or through Payment Protection Scotland, you can log your complaint for PPI compensation with the Financial Ombudsman.

To find out more about how we can help you, call Payment Protection Scotland today. With a 'straightforward' claim, you could be enjoying a windfall within weeks!

How Do You Know if PPI Was Mis-sold To You?

You would think it would be obvious but there is a bewildering array of reasons why PPI may have been mis-sold to you.

Questions

Our PPI mis-selling wheel will help you whether you are starting a new claim or whether you have made a claim and it has been rejected.

Here at Payment Protection Scotland, we aim to help people by offering a professional service, to help them claim their money back.

We know and understand that PPI was sold to millions of customers across the UK, including here in Scotland. We are passionate about helping you claim your money back and we don't want you to miss out.

But if you don't make your claim soon, you could face not having your money back at all. You have until August 2019 to launch a PPI complaint so take a look at our mis-selling wheel top find out more.

Here are some ideas as to why you probably were mis-sold PPI…

Our graphic shows six reasons why PPI may have been mis-sold to you, although there can be other valid reasons too.

Many people, for example, were told that PPI was compulsory - it was NOT! You could have bought a similar type policy from somewhere else, getting a substantially better deal and cover.

A common sales tactic is the second reason on the mis-selling wheel. It was the implication that buying the policy would place your application for a loan or credit card etc., in a much better light. Again, this is not an acceptable selling practice.

Likewise, many people were also not told of the specific exclusions such as not being covered on the grounds of existing health issues or that how you worked also impacted on whether you were covered or not.

And possibly the most misleading one is the fact that for some customers, they were not even told that PPI was added to their accounts and this is why it is so important to claim back PPI compensation from your bank, credit card provider or lender!

Why not get help from Payment Protection Scotland? We are experts in the field of PPI compensation.

Were YOU mis-sold PPI?

  • Were you told it was COMPULSORY?
  • the sales representative IMPLIED it would benefit your application
  • If you did buy it, were you told the cover would NOT last the full term of your loan?
  • Were you told about the health issues and illnesses that would NOT be covered under the policy?
  • Were you unemployed, self-employed or retired at the time you took the policy out?
  • It could have been added without you knowledge or consent...

 

Have You Been Mis-sold PPI?

What is PPI?

Payment protection insurance (PPI) was a policy that was meant to protect you in the case that you could not make repayments on a loan due to loss of income, either through unemployment or sickness.

What is the problem with PPI?

It was not the golden ticket for the consumer that we thought it was but it was a path paved with gold for the banks, who made up to 80% profit per policy.

Wrong

The customer, paying for a mightily expensive policy was not covered in a way that they thought they were… but no one knew this until someone pointed out how unfair the policy was.

As a result, thousands of customers found out how useless the PPI policy was. They found that they would have been unable to make a claim, especially in cases such as those who were self-employed or retired. Thousands of other policies were mis-sold for others reasons too.

Banks must now trawl through years' worth of records, find the people they mis-sold PPI to and invite them to make a claim.

What does this mean for you?

It means that if you can prove you were mis-sold PPI, you can claim your money back. This would include;

  • All premiums paid
  • Interest at 8%
  • Any fees and costs
  • Commission, if the amount paid was more than 50% of the cost of your PPI policy but you weren't told

"But, I don't have PPI!"

Many people who call us for advice will tell us they have received a letter, it looks genuine enough but how can they make a claim if they don't have a PPI policy.

The truth is simple - if your bank or lender has written to you, somewhere in the past you must have been paying for a PPI policy, you just may not have known it at the time, or now.

This is because some PPI policies were 'sold' to customers in a way that meant the customer had no idea they had bought it. It has simply been added to their account.

This was prevalent in cases where people applied for and were accepted for loans, credit cards and so on, online. The 'opt-in' box for PPI was already ticked at the bottom of the small print and thus, many people did not see it.

Neither were people made aware of the limited amount of cover it offered. In fact, the truth is that if someone had talked through the terms and conditions, highlighting what the policy did not cover, we doubt you would have bought it.

If you think you have a claim for mis-sold PPI why not let Payment Protection Scotland help you make a claim?

5 Reasons why PPI Could Have Been Mis-Sold to You

Payment protection insurance (PPI) was mis-sold to thousands of people all over the country. Adding significant expense to loans, credit cards, store cards, catalogue accounts and many more credit products, PPI was mis-sold for many reasons.

Here is the countdown of the most 'popular' mis-selling of PPI to customers…

Five

Number 5 - Policies mis-sold to the self-employed, unemployed and retired

Even though PPI is meant to protect repayments when income is lost, the definition of income in terms of those unemployed at the time they were sold PPI, as well as those who were retired is somewhat different to that of a person in employment.

The income stream these two groups have is not considered to be 'economically active' therefore, under PPI they had no income to protect.

In terms of those who were self-employed, they were sold a product that was so complex in terms of claiming on it, that it was almost impossible for them to make a claim.

Would you, for example, close your business if you become unwell? This is what the PPI policy would effectively demand!

Number 4 - Policies mis-sold to people with pre-existing medical conditions

The policy was clear: those suffering from pre-existing medical conditions would not be covered by the policy.

In some cases, the policy also stipulated that they would not cover claims by people unable to work due to mental health illnesses or back problems.

Again, customers were NOT made aware and paid for this expensive policy assuming that the whole of the body was covered, both physical and emotional illnesses.

Number 3 - 'You MUST buy this…' or 'it will really help your application…'

Halfway through our countdown and we see the mis-selling reason turn to playing on the emotional state of the customer.

Applying to borrow money is an emotional decision with far-reaching consequences. If successful, you have a new financial responsibility. If the decision is no, then you have a problem to solve.

And so, it being hinted that your application was more likely to be approved if it is protected by PPI would almost guarantee your purchase of it.

PPI - nor any other product - is compulsory.

Number 2 - The single premium policy

These were all the rage some years ago. Unlike other customers who paid a monthly premium, some people were sold the policy with one lump sum being added to their loan.

Not only adding an expense to the loan, there was also interest charged on this lump sum too. And, to make matters worse, the term of the policy rarely lasted the same length of term as the loan.

AND, in the top spot…

You did NOT know you had PPI! Are you confident you are not a victim of mis-selling?

 

Confident You Weren’t Mis-Sold PPI?

With the compensation pots of the banks being boosted with yet more cash, the saga that is the mis-selling of payment protection insurance (PPI) looks set to roll for some time yet.

BUT, where did it all go wrong? And how do you know you were mis-sold the product? Time to ask MORE questions…

Sold

Was the product right for you?

Anyone selling you a financial product, whether it is in insurance for your home or income related as in the case of PPI, they MUST check that the product is right for you.

In many cases where PPI was mis-sold to people, this did not happen for a variety of reasons such as;

  • needing to hit 'sales targets'
  • the lure of commission
  • the prospect of large profit margins

Were you retired when you took out your loan?

Anyone self-employed or retired at the time they took out a loan and were sold PPI would have found that making a claim in the policy would have been difficult. This is because their stream of income is not one commonly protected under this kind of policy.

In many cases, the Financial Ombudsman who rules on disputes between customers and banks have highlighted several times that if people knew when they were sold the policy that it was not suitable for them, they would not have bought it.

How is your health?

Many insurance policies, not just PPI, insure people against loss of income etc. due to ill health. This is common in policies today too and thus, in some cases, you will be asked specific questions about your health.

It is important to answer these truthfully as by not doing so, you could effectively be buying a policy that you cannot claim against. In the case of PPI, this happened but not because the customer was untruthful!

In some cases, the sales representative did NOT make it clear that anyone living with or suffering from a pre-existing medical condition would not be covered by this policy.

Effectively excluded under the policies terms and conditions, anyone looking to make a claim would be sorely disappointed.

Where you asked or advised to take out the policy? Were you given all the detail?

The re-occurring theme across thousands of cases for PPI compensation is that fact that customers were effectively duped into the buying the product.

From lack of information to being advised to take out the policy for one reason or another, the customer trusted their bank.

In many cases, just like you, the customer had had a variety of products and services with the bank over many years - why would they not trust them to have their best interests at heart?

Unfortunately, this trust has been abused and you have paid the price. Now is the time to strike back and make a claim for PPI compensation. Can Payment Protection Scotland help you?

The PPI Mis-selling Saga – Missing Trust

Payment protection insurance (PPI) is now surely the most infamous insurance product ever to have been sold in the UK.

Handshake

A golden ticket…

No bank, building society or financial company seem to have been immune from the riches and profits that the sale of this insurance product offered.

From swelling the company profits to gargantuan proportions, to swelling the salary of the bank representative who sold the policies to customers, PPI was for everyone involved, the golden ticket.

But not the customer

But, it wasn't actually the golden ticket for everybody.

The people who did not benefit from the sale or purchase of PPI were the vast majority of customers who bought it.

Sold on the premise that it was the financially responsible thing to do, customers were swayed, cajoled and pressured into buying an insurance product that was, in many cases, not right for them.

For example, people who were self-employed, it only offered to pay out if they were too ill to carry on running their business and close it down.

This ring of permanency is not something that is common to many illnesses, thankfully.

Other customers simply did not realise they had 'bought' PPI. This took different shapes;

  • the banks often wrote to customers, telling them this great product had been added to their account and was all part of creating a better service for them, the customers, who, the bank inferred, they cherished so much.
                                                                              
  • For others, the 'buy PPI' box was already ticked at the end of a very long, very fine small print with all the conditions of the credit card they were purchasing.

The cost of PPI outweighed the meagre cover it offered, to the few people who had any hope of making a claim. Those that did try to claim, only 15% were successful in claiming any sort of pay out.

And even then, they had to wait 12 months before they received any money by which time they were either better and back at work or in severe financial straits.

The turning tide

The banks are still struggling to gain back the trust of consumers, both the 'man on the street' and the large companies and global corporations that they do business with.

The fixing of the Libor exchange rate didn't instil confidence that banks had, in fact, changed their ways.

The PPI mis-selling scandal opened up a whole can of worms in effect. It threw the spotlight on to an often unlit part of British banking. The attitude that the banks knew what was best, financially, for their consumers is gone.

Consumers are now more aware of their rights; they do not have to buy any additional products along with their loan and, if the bank do stipulate they want the repayments insuring, they cannot insist that the consumer buy their products.

Isn't it time you claimed your money back?

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?

Top 5 PPI Mis-Selling Tactics – Were YOU a Victim?

To claim PPI compensation, customers need to prove they were mis-sold PPI on their mortgage, loan, store card, catalogue account or credit card etc. This means telling the bank or lender why you believe it was mis-sold to you.

Tactics

Unsurprisingly, over the last six years of PPI compensation claims, there are some popular mis-selling tactics coming to light. So how is the top five looking?

1. Self-employed, unemployed or retired?

If you were NOT asked about your employment status OR after making your employment situation clear - you were not in employment or you were self-employed or enjoying retirement - but were still sold the policy, you have an eligible compensation claim.

Most PPI policies also had anupper age limitbeyond which the policy would not pay out, normally 65. Therefore, if you were 'too old' to make a claim when you were sold PPI then you have a claim. If you passed this age threshold whilst you had the policy, you may be entitled to claim the premiums back after this date.

2. Pre-existing medical condition?

Exclusion for pre-existing medical conditions is fairly standard across many insurance policies. In other words, very few insurance policies will pay out on a medical claim if it comes to light you suffered from the condition etc. before you took out the policy.

However, many customers were not made aware of this when they took out the PPI policy and neither were they asked specific questions regarding their health.

PPI did not cover 'bad backs' unless it was a spinal injury of some sorts and neither did it cover mental health issues, two common reasons for extended leave of absence from work.

You should also have been made aware of any other exclusion under the policy.

3. Compulsory? Advised to buy?

Some financial institutions, banks etc. sold PPI policies on the basis that it was compulsory - which it is not.

The policy was entirely optional although it was oftenhinted to customers they were more likely to secure the loanor make a successful application for a mortgage etc. if they took out the PPI policy.

If you were sold the policy after 14 January 2005 and the PPI was 'strongly recommended' (or similar terms were used) then this constitutes an 'advised sale'. Unless you received documentation that clearly illustrated why this policy was recommended for you, then you may have an eligible compensation claim.

4. Did it suit your circumstances?

Up until May 2009, most PPI policies were sold as 'single premium cover' policies. This meant that the cost of the PPI was added to your loan and you were made to pay interest on this amount, as well as the loan amount you borrowed.

Most single premium policies last a 'standard' five years - if your loan or product lasted longer than this, then you may have a PPI claim. Similarly, you may also want to consider making a PPI claim if the loan was in joint names as PPI covered only one person.

Also, if you made it clear to your lender that you already had some form of payment protection in place, but they still sold you PPI, then you could have a claim.

5. Didn't know you had PPI...?

Most customers are surprised to find they had PPI cover! Some old policy agreements simply had a tick box to decline PPI on their loan etc. and this had now deemed to be mis-selling.

Check you PPI documentation and if any of the above apply to you and consider making a PPI claim!