Here are some common questions and answers about mis-sold PPI.
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Payment Protection Insurance is insurance which is taken out with a loan or a mortgage to protect the Borrower if for some specified reason they are unable to make their payments on the loan, for example if they become ill incapacitating them from work or lose their job.
For this reason, it is sometimes known as "Accident, Sickness and Unemployment Insurance" (ASU).
In recent years, according to the Office of Fair Trading (OFT), there has been widespread mis-selling of PPI by Banks and other Lenders.
Examples of mis-selling include;
1) You have been sold PPI that is substantially overpriced. Many banks and Lenders have sold PPI to Borrowers that represents, in some cases, up to 40% to 50% of the value of the loan. This is in contrast to many PPI products in the market place, which can be taken out for monthly payments over the term of the loan often representing less than 5% of the loan.
2) The Lender did not undertake a proper "fact find" of your financial situation, in which case a PPI product was sold to you which was inappropriate for your needs.
3) The Lender may have said to you that the PPI was compulsory and you would not receive the loan unless you took out the PPI, when in most cases this is incorrect and it is generally optional.
4) You may have been sold PPI that was clearly not appropriate for your needs; for example if you are unemployed or retired, there would be no reason to insure against losing your job and similarly, if you are self employed, the employment provisions of most PPI policies do not apply.
5) You may have been sold PPI when you already received full company sick pay at work, making the need to insure against sick leave from work unnecessary.
6) You were sold PPI and the lender received a secret commission and contrary to law, failed to disclose or account to you for this.
7) You may have been required to take out a further loan to pay the policy up front, increasing your monthly payments and increasing unnecessarily the cost of the PPI when many PPI providers will accept monthly instalments over the term of the loan.
You can make a claim if you were sold a PPI policy at any time in the last 15 years.
If successful in your claim, you are entitled to claim back all of the PPI premium that you have paid, including any interest you have paid. You may also be entitled to receive an account of any secret commission that the Lender was paid by the insurer on the policy that they did not disclose to you. You are also entitled to claim interest on any monies you are owed and should not have paid.
Since our firm was established 11 years ago, we prided ourselves on our clients receiving 100% of their compensation. As solicitors, we claim our legal fees from our opponents (in this case, the lender who sold you your PPI) on top of any compensation and therefore, we gave you the guarantee that our clients receive 100% compensation.
However, following Government changes and the introduction of the Legal Aid and Sentencing of Offenders Act which came into force on the 1 April 2013, we are now not able to recover all of our legal fees from our opponent and therefore only on successful cases, we do make a small charge from our client's compensation. This will be capped at 15% of the awarded compensation (i.e. plus VAT this is a total deduction of 18%)
Therefore, if you are successful in your claim there will be a charge of up to 15% of your compensation. If for whatever reason, you are unsuccessful we will make no charge for our work and therefore our agreement remains a no win, no fee agreement.
Given the new rules will allow solicitors and claims management companies to charge a fee of up to 50% of the compensation awarded (and we are aware of firms who do this), we think our small deduction is very competitive and keeping in the tradition of ensuring clients get the maximum, and as much of the compensation as possible.
Generally, the speed at which your claim may be settled depends on how promptly the Lender replies and negotiates with us. We find that most claims can be processed within a matter of months. At Claims For You we pride ourselves on our speedy service as many of our former clients can attest to.
No, we will be able to do most of the necessary paperwork for you. You will have to check the details of your claim before it is submitted, but we will assist you with this.
For no obligation advice, call free on 0800 092 1497 or fill in the form and we'll call you back