Payment Protection Insurance (PPI)
Eligibility
Fees
Process
Alternatives
Faqs
Background
Payment Protection Insurance (PPI) is offered to eligible consumers when
taking out a loan or finance agreement to cover your monthly payment if
for example: you are made redundant, or are unable to work due to illness
or injury, or you lose your job. There are clear rules which should be
followed by finance firms and advisers, however, independent research
(Which?) shows that around 2 million policies may have been mis-sold.
Here are some examples of why you may have been mis-sold:
•You were told that you had to
take out the policy to get the loan
•You were told that taking out the PPI would increase the chance
of the loan being approved
•You weren't asked about any pre-existing medical conditions
•You weren't told that you could purchase a similar policy elsewhere
•You were self-employed, unemployed or working for an agency at
the time
•You receive a similar benefit through your employer e.g. NHS staff,
police force, fire-fighters etc.
•It was not made clear to you that the PPI was optional
•You were not told that the PPI was added as a lump sum and that
you would pay interest on it
There are also instances where the PPI is added to the loan without the
customers consent or knowledge. Also, some PPI policies can be cancelled,
and yet many of the customers that we deal with had tried to cancel the
policy to be told that they couldn't.
You can pursue a claim for PPI that has
been paid off or cancelled within the last 6 years or if you are still
paying for it. We can also check loan, credit card and mortgage documentation
for PPI that may have been added without your knowledge.
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Eligibility
Payment Protection Insurance (PPI) is offered by lenders
to consumers taking out a loan, credit card or mortgage and can also be
called the following:
•Mortgage Payment Protection Insurance (MPPI)
•Credit Card Repayment Protection (CCRP)
•Accident, Sickness and Unemployment Cover (ASU)
•Life and Accident, Sickness and Unemployment Cover (Life &
ASU)
•Personal Loan Protection (PLP)
•Payment Protection Plan (PPP)
•Life Cover
Money Matters can accept the following claims:
•Policy attached
to an existing loan, mortgage or credit card
•Policy with final or last payment made within the last 6 years
(policy could have run out or been cancelled)
•Policy was added as a lump sum or paid monthly
If you have made a claim on the policy, this does reduce your chances
of being able to claim that the policy was mis-sold. However, if you did
not receive what you were entitled to under the policy, you may have a
valid claim.
Fees
Money Matters do not charge any upfront
fee for mis-sold PPI claims.
Upon successful conclusion
of a claim we ask for 20% of the amount returned to the client as our
fee plus £50 to cover administration.
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Process
1.We will send you a Customer Claim
Pack to read through and complete.
2.Upon receipt of the forms we will raise your complaint with your lender
and request a refund of premiums paid including the interest of the associated
loan or credit card plus statutory interest.
3.Your lender has 8 weeks to respond to your complaint, however, some
lenders have a backlog of cases and take a few weeks longer than this.
4.During this time the lender may reject the case, in which case we will
pursue the claim further.
5.If the claim is rejected with a final response, your complaint may need
to be referred to the Financial Ombudsman Service (FOS), Finance and Leasing
Association (FLA) or the Financial Services Compensation Scheme (FSCS).
We will undertake this on your behalf.
6.If your claim is upheld, we negotiate the settlement figure with your
lender.
7.Upon successful conclusion of your claim we will invoice you for 20%
of the amount recovered plus £50.
Alternatives available to you
You can
pursue a case for mis-sold PPI directly via your lender's complaints procedure
or the Financial Services Ombudsman. However, we do believe that our experience
with these claims will increase your chances of the claim being upheld
and receiving your entitled refund.
FAQs
How long does the claims process take?
As lenders have 8 weeks to respond to a
complaint, we usually have an offer within a couple of months. However,
some lenders have a backlog and so a claim may take longer. If your claim
is rejected by your lender, we may need to pursue alternative routes which
will add more time to your claim.
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I cancelled the payment protection on my mortgage
a few years ago - can I still pursue a claim?
If you
suspect that the policy was mis-sold, then we can investigate a claim
for you. We can accept claims where the last payment was made within the
last 6 years.
What if I am in arrears with my payments?
Your lender can use your refund amount
to clear any outstanding arrears.
Can my lender use my refund to pay
off my loan or credit card?
If you are not in arrears, you are entitled
to have your refund returned to you - it's your money. Your lender should
not use the refund to reduce your loan or credit card balance. However,
some lenders will refund the premiums made to date, and then reduce your
outstanding balance accordingly, hence reducing your monthly payment amount.
Do you have a minimum claim value?
No - we will accept claims of any value.
Could I pursue my own claim for mis-sold PPI?
Yes, you could. You can raise your complaint
via your lenders complaints procedure and if you are not satisfied with
the response, take your claim to the Financial Ombudsman Services (FOS).
However, using an experienced claims management company may increase your
chances of having your claim upheld and receiving your full entitlement.
