How to go about Claiming PPI Compensation
There are a substantial number of people who are unaware that they are eligible to make PPI claims for compensation. How do we know this? Well, for years banks and other credit providers have been increasing their provisions to pay customers claiming PPI compensation, yet billions of pounds still remains unclaimed.
One of the reasons for so much money being unclaimed is that payment protection insurance (PPI) was mis-sold systematically for many years to thousands of customers – sometimes hidden behind other fees and charges, or added to a credit account without the customer´s knowledge or consent.
This article explains how you may be amongst the many thousands of credit consumers unaware that you are eligible to make PPI claims for compensation and how you can go about claiming PPI compensation from your bank or other credit provider.
How the Mis-Selling of PPI Occurred
The mis-selling of PPI occurred because payment protection insurance was a lucrative product to sell. Relatively few people claim against PPI policies in comparison to car insurance policies and household insurance policies, so banks and credit providers were able to negotiate huge commissions from the providers of PPI for signing their customers up.
Banks and credit providers incentivised their sales advisors to sell as much PPI as possible, and penalised them if they failed to meet their sales targets. Consequently sales advisors frequently mis-sold the benefits of PPI, told customers that it was compulsory alongside a credit agreement or simply faked PPI agreements.
How PPI claims work
Our process is really easy and we are here to guide you every step of the way…
Call or fill the form
One of our friendly helpful advisors will speak to you, with no pressure or obligation to proceed with a claim.
We check if you had PPI
We don’t need account numbers, just the lender name. Don’t worry about lost paperwork, we can still check for you.
We process your claim
You receive your cash £££!
Unfortunately the sales managers – who were supposed to monitor the compliant sale of payment protection insurance – were also incentivised for their teams to hit sales, and risked demotion if they failed. Due to this irregular practice by the banks and credit providers, all controls over the sale of payment protection insurance evaporated.
PPI Claims for Compensation Begin to Escalate
Although the first PPI claims for compensation had been made in the 1990s – and PPI identified as a poor-value product in 1998 – the sale of payment protection insurance continued unabated for more than a decade. In 2009 the Financial Services Authority introduced new guidelines for the sale of PPI and for claiming PPI compensation.
The guidelines for claiming PPI compensation were challenged by the British Bankers Association, as they allowed customers to make historic PPI claims; but, in 2011, a judicial review of the new guidelines ruled that customers who had been mis-sold PPI could recover compensation if a payment had been made to a PPI policy within the past six years, or if a customer had only just discovered that they had been mis-sold PPI within the last three years.
As a result, thousands of customers started claiming PPI compensation and, to date, more than £17 billion has been repaid. The worst perpetrators of the PPI mis-selling scandal were the major High Street banks, but stores such as Homebase, Land of Leather and Argos also mis-sold PPI along with their store cards. The domestic repairs company HomeServe and Swintons Insurance have also received hefty fines from the city watchdog for mis-selling PPI.
Should I be Claiming PPI Compensation?
Whether or not you are entitled to make PPI claims for compensation will depend on the circumstances in which payment protection insurance was sold to you. If PPI was added to a credit agreement without your consent then “Yes” – you were definitely mis-sold PPI and should be claiming PPI compensation. Other reasons why you might be entitled to make PPI claims include:
- You were told that you would not be accepted for credit without PPI or that it was a compulsory protection against illness or unemployment
- You were self-employed or had an occupational sick pay scheme that would have covered your credit repayments
- You were a student, a housewife or a pensioner when PPI was mis-sold to you and therefore not eligible for the benefits
- You were not asked about pre-existing medical conditions that may have excluded you from the benefits of the policy
- You were not told that PPI was available from other insurance providers
The final reason is the one which most commonly entitles customers to make PPI claims. This is because highly-incentivised sales advisors would not have wanted you to shop around and potentially lose the sale (especially when warnings had been around for more than a decade that PPI was a poor-value product).
Speak with us.co.uk about PPI Claims
If you are in any doubt about whether or not you should be claiming PPI, please do not hesitate to contact our freephone financial claims advice service and speak with one of our helpful advisors. Our advisors will be able to help you establish whether or not you were mis-sold PPI and – if so – talk you through the process of claiming PPI compensation.
All calls to our financial claims advice service are completely confidential and, if we believe that you have a claim for PPI compensation, we are willing to make the claim on your behalf – although you are under no obligation to use our convenient service when you call us.
For your security we are regulated by the Claims Management Regulator, so that you can be assured of a dedicated and professional service at all times. We also operate on a “no-win, no-fee” basis – so, if we make PPI claims for you on your behalf and fail to recover compensation for you, there will never be a charge for using our service.