| What Is PPI? | | | | claim PPI if they have actually made a claim on the |
| Payment Protection Insurance is an insurance product | | | | insurance. |
| that protects you from payments you have to make | | | | What Can You Claim Back? |
| should you be unable to make those payments. | | | | The first and biggest sum you can claim is usually |
| Typically it covers you if you are made redundant | | | | everything you paid out in PPI since 2004. Banks |
| (but not if you get fired), if you are unable to work | | | | typically would charge you a lump sum for PPI at the |
| due to illness or if you have an accident. It can be | | | | beginning of your loan or mortgage. This means you |
| taken out to cover any kind of credit that you have | | | | were charged interest on the PPI at the same rate |
| to pay for. Typically for mortgages, loans and credit | | | | at your loan / mortgage. If you took at a 5 year loan |
| cards. It can also be taken out on store cards and | | | | with some of the worse PPI offenders then PPI |
| even to cover the payment of other types of | | | | could work out at up to 25% of the total you paid |
| insurance such as life insurance. | | | | back. So a £7,500 loan over 5 years with PPI you |
| PPI can be a useful product. | | | | could end up paying back up to £13000. £3000 of |
| What Are PPI Claims? | | | | which would be PPI plus interest! You would of only |
| Although PPI can be a useful product the FSA | | | | had to pay £10,000 without the PPI. |
| (Financial Services Authority) that regulates the selling | | | | On top of this you may be entitled to a standard |
| of financial products has deemed to have been | | | | rate of interest on the money that should have been |
| miss-sold a lot over the past 6 years. It has been | | | | yours, usually 8% per annum. Finally in cases of |
| miss-sold in the following ways: | | | | excessive miss-selling you may be entitled to |
| [1] Customers were being charged up to 10 times | | | | compensation for the whole ordeal as it could of led |
| what the products is actually worth! | | | | to serious detrimental debt problems and even |
| [2] Customers were being sold PPI that would never | | | | bankruptcy. |
| of been eligible to claim on it anyway because they | | | | How Much Can You Claim Back? |
| may have been self employed, been in a job that is | | | | If you had a breakdown each month of what you |
| classified as dangerous, on a short term contract, | | | | paid out in PPI since 2004 then you can add all this up |
| been too old or have pre-existing medical condition. In | | | | to give you a minimum estimate. Also if you are still |
| fact if you checked the small print in some policies | | | | paying for this over priced PPI then you can cancel |
| you would find lost of exclusions. Some don't cover | | | | the policy which will reduce your monthly outgoings. |
| you if you are of work ill with back pain or stress | | | | You could then, if desired, sign up to an independent |
| which are 2 of the biggest causes of absence from | | | | and reasonably priced PPI policy. This policy would be |
| work. | | | | paid each month not in one lump sum with interest. |
| [3] Finally people were sold PPI in a way that is not | | | | Alternatively if you don't know what you actually paid |
| consistent with FSA guidelines. Either they weren't | | | | in PPI, to get a ball park figure it is 20% of what you |
| aware PPI was included with their credit, they | | | | paid back in loans, mortgage and credit cards |
| thought they had to buy the product or that it would | | | | between 2004 and 2010 that had PPI. So if you paid |
| increase their chances of being approved for credit | | | | back on average £500 which included mortgage and |
| or high pressure selling techniques were used to sell | | | | credit cards, over 6 years that is 72 months, 72 x |
| the product. E.g. "we would like to approve you for | | | | 500 is £36,000. This would probably equate to |
| this credit but we are worried about what would | | | | £7,200 of PPI. |
| happen if you were to lose your job...". | | | | PPI Claims Management companies that I have |
| If any of these apply to you then you can claim back | | | | spoken to say they have recovered £20,000+ for |
| what you paid, plus interest and in some cases PPI | | | | some clients. Especially if you have a lot of debt that |
| compensation for excessive miss-selling. Currently | | | | you "juggle" between credit cards and a big |
| 90% of claims are valid so if you do have PPI that | | | | mortgage. The biggest claim I am aware of was |
| you have been paying the past 6 years there is a | | | | £41,000 for a single client which was PPI spread out |
| 90% chance it was miss-sold unless you shopped | | | | across 1 loan and 3 credit cards. £41,000 of money |
| around and bought it independently of your mortgage | | | | that the client would not have had if they had not |
| / loan supplier. In some cases customers can even | | | | decided to pick up the phone and make a claim. |