As you’re probably well aware, the mis sold PPI claims scandal keeps going on and on, creating endless column inches and reams of media coverage. Whether it’s fresh claim figures from the Ombudsman or radio adverts by claims companies – PPI is a serious issue that banks really wish would go away.
The thing is, it won’t go away and there are still plenty of people yet to make a claim that may be owed compensation. Moneysavingexpert.com believe there’s plenty more claims to come: “Consumers have already reclaimed over £8 billion since January 2011, but that sum is thought to be the tip of the iceberg.” The question is: are you owed PPI compensation? Have you had a mortgage, credit card, car loan or any other form of credit agreement in the last twenty years? If so, you may have also been paying for a hidden or mis sold PPI policy.
UK banks have set aside £18bn for PPI refunds, that’s double the cost of the Olympics and more debt than sent Detroit bankrupt!…
- Lloyds: £7.3bn
- Barclays: £4.1bn
- RBS: £2.2bn
- HSBC: £1.6
- Santander: £750m
- Other banks: £2bn
The money’s there to claim but many people are unaware that they may be able to get their mis sold PPI premiums back. To find out if you’ve been mis sold PPI, let our team take a look at your loan agreements and paperwork. We work on a No Win No Fee basis, so if we find PPI we’ll help you get the refund you’re owed – if you don’t have PPI or you were not mis sold it then you pay nothing at all. Call us free on 0800 840 7292 or fill out the short form above and we’ll call you back.
Let’s have a closer look at what the scandal is all about.
How did we end up with mis sold PPI claims?
Payment protection insurance (PPI) is designed to cover the monthly repayments on your mortgage, credit card or loan if you are unable to make them for a set number of reasons. For example, you may have been made redundant, fallen ill or suffered an injury through no fault of your own leaving you without an income. If this happened, the PPI policy was supposed to kick in and cover the repayments until such time as you can meet them yourself. The problem is, very few policies actually functioned this way.
A large number of PPI policies were mis sold from the outset with sales teams not checking that the consumer was eligible for cover should she need it. As a result when the policy owner claimed, the provider wouldn’t pay out because her circumstances didn’t match the criteria. Not her fault but the fault of the sales person who sold her a useless product by not checking her status. People were also sold over-priced policies, forced to take PPI in order to get the loan and even had the cover included in their borrowing without being told. All classic examples of mis sold PPI.
The widespread mis sold PPI claims scandal came about after the number of complaints rose to a level that could no longer be ignored. A High Court case followed and in April 2011 a judge decided in the consumer’s favour, leading to billions being refunded to millions of people.
Have I Been Mis Sold PPI?
To work out if you can make mis sold PPI claims you need to discover if your policy was mis-sold to you. Think back to the moment where the loan was agreed: were you told of your right to shop around for your own PPI deal? Or were you led to believe that the PPI policy came as a package with your loan? Perhaps you were not even told they were including PPI with the loan? All of these are instances of mis-selling, and there are more. If you think you have a claim, the next paragraph tells you how to calculate your potential refund.
How Much Is My PPI Claim Worth?
First of all it’s important to consider that you may be owed more than one PPI refund, think about it – have you had more than one loan; a remortgage, multiple credit cards, a car loan, a domestic appliance on credit? All of these borrowings could have their own PPI policy attached.
Even if you do not have the original paperwork it is possible to calculate the value of a payout on a single premium policy; you will need the following before we begin:
1: The actual amount of the loan
2: The specific loan terms
3: The APR for the loan
Now, you should follow the simple steps outlined below. Our chosen example assumes a loan of £10000, over a period of five years at 7.9%APR. We have also assumed that the PPI charge adds 25% to the loan; this is a standard figure, but in some cases it can be much more. So, the total amount of the loan, including PPI, is now £12,500. Step by step, the calculations look like this:
Loan Amount = £10,000
Term of Loan = 60 months
Interest Rate = 7.9%
Interest on Loan = £3,950
PPI Premium = £2,500
Interest on PPI Policy = £987.50
Total Repayable = £17,437.50
A £2500 PPI charge with interest over 5 years means adding £987.50, so your basic reclaim amount should be £3,487.50. There is also the need for compensation at a standard rate of 8% per year so we add an extra £79 to the total, bringing it to £3,566.50.
However, there are several factors that may complicate the issue; you may have paid off your loan earlier, in which case you will have paid less PPI, or you may still have parts of the loan outstanding. In this case you may be paid back what you have spent so far, with the rest spread over the remainder of the loan.
How to Claim Back Mis-sold PPI
You have two options when it comes to claiming back your mis sold PPI payments:
1. You can take on your bank alone; or
2. Let a specialist claims company take care of it
Going it alone means you’ll have to make the phone calls, send the letters and fight your lender off your own back and in your own time. The benefit is you keep all of any refund you win, but you will have to put a fair amount of work in over the following 18 months (that’s the average Ombudsman turnaround time). Go through a claims company such as ourselves and you’ll pay 25% plus VAT of any refund, but we’ll do all of the legal and administrative work, chase your lender and take your claim to the Ombudsman if necessary. We also work on a no win, no fee basis so if you weren’t mis sold PPI or we find that you don;t have it – you pay us nothing.
To find out more about claiming back PPI – no obligation – call us now for free on 0800 840 7292, or fill out the form above and we’ll call you back as soon as possible.