Recovering a Refund for Being Mis-Sold PPI
Possibly the most useful way in which to start an article on the PPI compensation claims process is to explain what PPI is, and how people qualify to claim a refund for being mis-sold PPI. PPI is an acronym of “payment protection insurance”, an insurance product that covers your repayments on credit arrangements if you are unwell and are unable to work, or if you lose your job and have no income.
PPI also ensures that credit providers are not exposed to unavoidable defaults on loans and other credit arrangements during a period of high unemployment. For credit providers such as banks and credit card companies PPI is a lucrative insurance product, as relatively few customers claim against their PPI policy compared to the number of people who claim against other insurance policies – for example car insurance. Because of the significant profits that could be made from selling PPI, credit providers incentivised their sales advisors to sell as much PPI as possible.
How the Mis-Selling of PPI Developed
The mis-selling of PPI developed into a scandal because credit providers also incentivised their sales managers on how much PPI their sales advisors sold. The managers were supposed to be the control mechanism that prevented PPI from being mis-sold; but, because the managers also had targets to meet (and could be demoted if they failed to meet them), the managers failed to apply the brakes on the mis-selling of PPI.
As a result, millions of credit consumers were mis-sold PPI. Eventually the Financial Conduct Authority intervened, introduced new guidelines for the selling of PPI, and initiated a PPI compensation claims process in order that credit consumers could claim a refund for being mis-sold PPI – the refund not only including the return of premiums paid and charges incurred, but also interest on the amount that was owed to the consumer.
The PPI Compensation Claims Process
The PPI compensation claims process involves writing a letter to each credit provider and claiming a refund for being mis-sold PPI. However, many credit providers have unjustifiably rejected claims or miscalculated the refund for being mis-sold PPI, meaning that claimants have had to complain to the Financial Services Ombudsman to have their claims reviewed.
In 2013, the Financial Services Ombudsman received their one millionth complaint about how credit providers handled claims and, at the last count, the Ombudsman had more than 400,000 claims for PPI compensation under review. The Financial Conduct Authority has also re-opened 2.5 million claims for PPI refunds as the complaints that the Ombudsman has investigated to date have a 70% uphold rate.
Who Can Claim a Refund for Being Mis-Sold PPI?
To find out if you were mis-sold PPI, please take a look at the list below. You can claim a refund for being mis-sold PPI if you have made a payment for a mis-sold PPI policy in the last six years, or if within the past three years you have discovered that PPI was added to a credit agreement without your knowledge.
- Your job provided you with an occupational sick pay scheme that would have covered repayments on your credit agreements – so you did not need PPI.
- You were a housewife, a student, self-employed, or a pensioner when PPI was sold to you and you would not have qualified for the benefits of the policy.
- You were mis-informed that PPI was compulsory or that you would not be accepted for credit without payment protection.
- You were not asked about any health conditions that might possibly have excluded you from the benefits of the insurance policy.
You were not told that payment protection was available from other insurance providers (usually because the sales advisor would have lost their commission if you had shopped around).
If you are in any doubt about whether or not you qualify for a refund for being mis-sold PPI and should start the PPI compensation claims process, please call our claims advice department and ask to speak with a financial claims advisor.
Speak with Us about the PPI Compensation Claims Process
We can help you with the PPI compensation claims process whether you are a credit consumer who is not sure whether you were mis-sold PPI, know that you were mis-sold PPI and have not yet claimed, or have already received a refund for being mis-sold PPI and want to check it is correct.
The PPI compensation claims process starts by calling our claims advice department or completing the reclaim form on this page, and discussing the circumstances under which you were sold PPI (if you know) with one of our financial claims specialists.
Our financial claims specialists will discuss with you the types of credit you successfully applied for (we do not need to know confidential information such as account numbers at this stage) and when – if you know – you last paid a premium on a payment protection insurance policy.
If our specialist believes that you have a claim for a refund for being mis-sold PPI (we cannot be certain over the phone), we will send you a claims pack in the post. All you have to do is complete and return the form in the claims pack to us in order that we can start negotiations with your credit providers.
There is no advance fee for our services and you are under no obligation to continue with the PPI compensation claims process once you have spoken to us. For your security, we are regulated by the Claims Management Regulator, and you can be assured of a dedicated and professional service at all times.