Frequently Asked Questions

Please see below some frequently asked questions, click on the question to see the answer. If you have any more questions please use the contact us page.

Payment Protection Insurance (PPI)

What is payment protection insurance (PPI)?

Payment Protection Insurance (PPI) is an optional financial product offered to customers who have taken out a loan, credit card or mortgage. It is used to cover repayments if the customer cannot make the repayments themselves.

PPI was also called Accident, Sickness and Unemployment cover (ASU), Life & Accident, Sickness and Unemployment cover (Life & ASU), Mortgage Payment Protection Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment Protection (CCRP).

How was it mis-sold?

Payment Protection Insurance is designed to cover loan or credit card payments if you cannot work, for example, if you become ill or lose your job. Banks and other lenders sold PPI to their customers without fully explaining what it covered. In the worst case scenarios, the banks/lenders lied to customers by telling them it was a compulsory element of a loan, or they simply added it without the borrowers’ consent.

Why should I claim?

The Financial Services Authority (now the Financial Conduct Authority) found that PPI was frequently mis-sold by lenders throughout the UK. By the middle of 2008, 20 million PPI policies existed in the UK and an estimated 7 million were being added to credit agreements every year. This suggests that over 70% of the UK could have been mis-sold a PPI policy at some point in time. It has been reported that as much as 40% of policyholders did not know that the insurance had been attached to their loan, credit card or mortgage. In fact, our own figures indicate an even higher figure.

Figures from the Financial Ombudsman Service (FOS) for April to June 2013, show that in almost 8 out of 10 cases that had been referred to them the lender had wrongfully rejected a PPI claim.

If you were one of the millions of UK consumers who took out some form of credit in the last 20 years or so (the earliest recorded case was 1992), you may well have been mis-sold a PPI policy – and in some cases you may not even be aware of it!

Am I eligible for compensation?

If you can answer ‘no’ to one or more of the following questions, then you may have been mis-sold PPI.

The insurance was optional, was that made clear to you?
Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won’t be covered for any pre-existing medical condition or you were self-employed?
If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in one single payment?
If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?
Single premium PPI insurance normally only lasts for five years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium, even after the insurance expired.
If you bought PPI after 14 January 2005 did the adviser try to persuade you to take it out by saying something like ‘we strongly recommend that you consider taking out PPI’? If so, the sale counts as an ‘advised’ sale and they should have issued a ‘demands and needs statement’ to show why a particular policy has been recommended and why it is suitable for you. If they didn’t, this is grounds for complaint.

How far back can I claim?

PPI has been sold since the 1990s and there is no limit on how far back you can claim.

How much will it cost me to pursue?

We work on a no win no fee basis, so should your claim be successful we charge a fee of 20% plus VAT of the compensation.

When will I receive my compensation?

The process of reclaiming your money can take as little as twelve weeks. However, this can sometimes take longer depending the circumstances.

Can I claim if I've used the policy?

Yes you can, if the policy was mis-sold you can claim on it.

What if I cannot find the original paperwork for my loan or credit agreement?

We don’t need any paper work to check if you had PPI, all we need is the name of the company you took the credit out with. eg Barclaycard

I am in an IVA or have been declared bankrupt, can I still claim?

If you are going through or have recently been through an IVA or bankruptcy, you must speak to your insolvency practitioner or debt advisor before making a claim. We are unable to help you make a claim unless you are up to date with your agreed repayments.

What if I can’t remember who my lenders were?

We recommend using Experian. They are currently offering a 30 day trial of their Credit Expert credit report. This report should reveal all your past lenders you have had. https://www.creditexpert.co.uk just make sure you cancel your membership after 30 days as they do charge a monthly fee.

Packaged Bank Accounts (PBA)

What is a Packaged Bank Account (PBA)?

Packaged bank accounts – sometimes called ”paid-for” accounts – usually charge a consumer a monthly or annual fee. These accounts can be called a lot of different names – gold, premium, upgraded, reward – but the thing they have in common is that they usually include a range of insurance and non-insurance benefits

Why should I complain?

  • If you felt ‘obliged’ to take out a packaged bank account by being told that it was your only available option
  • If you were not told that you could have a free account instead
  • If you were told that you had to have this bank account in order to get a loan or mortgage with the same bank
  • If you were told that you would get a better deal on your mortgage or loan if you took out this packaged account
  • If the insurance that went with the account was not useful to your particular needs (ie breakdown cover but you don’t have a car)
  • If you were not told that you wouldn’t be able to claim on travel insurance due to your age (over 65s usually) or because of illness or a pre-existing medical condition
  • If your bank account was ‘upgraded’ without you being notified
  • If there wasn’t enough explanation about the pricing and overall costs of the bank account
  • If you tried to cancel the account and were told that you couldn’t
  • If no-one told you that you had to register your mobile phone or car for the insurance to be valid

I think I was mis-sold. How much can I get?

If you’re mis-sold you should get the fees you paid back, plus interest. So quite simply, if you paid £15/month for two years you should get £360 back (£15 x 24 months) plus interest.

How much will it cost me to pursue?

We work on a no win no fee basis, so should your claim be successful we charge a fee of 20% plus VAT of the compensation.

If I've closed my account some time ago, can you still help me make a claim?

Yes. In most cases, we can reclaim fees for accounts that have been closed within the last 6 years if the account was mis-sold, all we need is the name of your Bank.

When will I receive my compensation?

The process of reclaiming your money can take as little as twelve weeks. However, this can sometimes take longer depending the circumstances.

What if I cannot find the original paperwork for my loan or credit agreement?

We don’t need any paper work to check if you had PPI, all we need is the name of your bank

I am in an IVA or have been declared bankrupt, can I still claim?

If you are going through or have recently been through an IVA or bankruptcy, you must speak to your insolvency practitioner or debt advisor before making a claim. We are unable to help you make a claim unless you are up to date with your agreed repayments.

What if I can’t remember who my bank was?

We recommend using Experian. They are currently offering a 30 day trial of their Credit Expert credit report. This report should reveal all your past lenders you have had. https://www.creditexpert.co.uk just make sure you cancel your membership after 30 days as they do charge a monthly fee.