PPI has been around since the early 80’s. Lenders have given it many names, such as Payment Protection Insurance, ASU, PaymentCare, Loan Protector, Payment Guard and ScotGuard. There are many, many more aliases.
In an ideal world, you will have the paperwork. If so, we can tell you immediately if you have paid PPI. You can either pop in personally to our office, post the documentation to us or even fax or email our team. In certain circumstances, we can even do a home visit. A chat with our team is often enough to give a pretty fair indication as to whether you currently pay PPI, or have done in the past.
However, don’t worry if you don’t have the paperwork. That’s where our expertise comes in. If you currently bank with the lender, or even if you ceased to do so up to 10/12 years ago, we would normally expect to recover your full borrowing regards back as far back as 1995 or even earlier. Every lender is of course slightly different.
To find out more about your historic credit, you can, for example, open an account with www.noddle.co.uk. It’s free for life and allows you full access to your credit file and, amongst other things, all the credit commitments you have taken out or repaid in the last 6 years. You could also check your bank account too. Many banks now offer online facilities that can allow you to view your bank statements as far back as at least 10 or more years ago. In addition, historically paid direct debits and standing orders may still be held by your bank. Simply visit your branch and ask them to print off your list of payments.
PPI may have been mis-sold for a variety of reasons. These are detailed below. One or more of these reasons may apply, and the list is not exhaustive.
Did you have a pre-existing medical condition at the time of taking the cover? If this was not accepted by the underwriters prior to being put on risk, you may not have been covered in the event of a claim.
Your loan protection may not have covered the whole period of the loan. For example, if you had a secured loan, it would be normal for the repayment term to be more than 5 years, but the cover may have only protected you for a maximum period of 5 years, leaving you uninsured for the remainder of the loan term.
The lender insisted that taking the cover was compulsory. A lending decision was not allowed to be conditional on cover being purchased.
The sale of a lump sum insurance may not have been appropriate depending how quickly you intended to repay the borrowing.
You may not have been eligible to take the plan depending on, for example, the number of hours that you worked, your type of contract or your job location.
You may have had existing insurance in place.
You may have had sufficient savings and investments that made taking the cover inappropriate.
The policy terms and conditions of the cost of the cover may not have been explained at the outset of taking the policy.
This very much varies depending on what the insurance premium was and the passage of time.
For example, if you took a loan in 2000 that went full term and included lump sum PPI of £2,000, then you would recover the premium, the interest on the premium for the period over which the loan was paid PLUS 8% simple interest for each year until the point a mis-selling claim is settled. This interest portion is always payable under deduction of tax at 20%.
Claims made under a policy or current arrears are likely to affect the final amount of compensation payable. Current and previous debt schemes such as Trust Deeds, IVAs, Sequestrations and Bankruptcies can also have an effect.
If you choose to proceed using the team at Beat the Banks, we need you to ensure that prior to submitting claims, you bring to our attention any previous or current debt issues.
The lender normally has up to 8 weeks in which to issue a final decision. Typically, most look to acknowledge a claim within four weeks of receipt. Some may even settle at that point.
At times, certain lenders may be under pressure with time limits, for example, as a result of newly announced provisions or FCA enforcement action. If a claim does not receive a final decision within 8 weeks, you have the option at that point to take the matter directly to the Financial Ombudsman Service (FOS). Given the well-publicised volume of cases submitted to them, this could delay a final decision by up to two years.
If a claim is rejected by the lender and you do not agree with the decision, you have the right to refer the case to FOS. This must be done within 6 months of the final decision letter by the lender. A final decision by the FOS can take up to 2 years, although it can be much quicker.
Once compensation has been agreed, the lender has 28 days in which to pay compensation. This is normally in the form of a cheque payable to you or via a BACS payment directly into your account.
All our claims are accepted on a “No Win No Fee” basis. If your claim is not successful, then you pay us nothing. Our success fee is 30% plus VAT at the prevailing rate. This is currently 20%.
A fee will be payable for any claim(s) cancelled after the 14 day cooling off period.*
Alternatively, you can choose to submit the claim yourself.
For example, if we successfully reclaimed £1000 on your behalf, then our charge would be £300 and £60 would be payable in VAT at the current rate of 20%. Our fee is charged on the total of (a) the total refund of PPI premiums and (b) the gross amount of statutory interest – that is prior to the deduction of income tax at the rate of 20%. Lenders are obliged to deduct income tax, irrespective of your tax status, at settlement.
Dependent on your tax position, you may be able to recover this amount via your annual tax return.
*Unlike many other PPI companies, we only ever recover your lender records via a FULL Subject Access Request under the Data Protection Act 1998. This involves the payment of a £10 statutory fee to the lender. If you have no proof that you paid PPI with the lender, we would ask you to pay the fee. This fee is refundable only in the event that you choose to cancel your enquiry within the 14 day cooling off period.