– Are you the kind of person that wouldn’t take an item back if it broke while under warranty?
– Would you put money away each month for 5 years then let the bank keep it?
– Do you withdraw a portion of your wage each month and burn it in the garden?
If you answered ‘yes’ to any of those questions then don’t bother reading on, instead: go buy 10,000 cassette players and set up a market stall. Being mis sold Payment Protection Insurance is like being sold anything that doesn’t work or is inherently faulty, in this country we have laws to ensure that you can get your money back and you should be using them.
Whether you think you have PPI or not you should at least check your loan paperwork for mention of any of the following:
Payment Protection Insurance
Accident Sickness Unemployment cover
Credit Protection Insurance
Loan Repayment Insurance
If you don’t have your paperwork, you just need to ring your lender and request it – check with them how much copies will cost.
To have been mis sold PPI, one or more of the following has to have happened:
1. It was included in your borrowing without you knowing
2. It was over-priced
3. The lender said you had to take PPI if you want the loan
4. The policy was completely useless as you weren’t eligible for cover
Think back to the time of the agreement and try to recall the meeting/phonecall/online application – was there any hint that PPI was not fully explained or optional?
Trust me, it’s worth looking into, not only for the cash (which I’ll come to in a minute) but also for your pride – are you happy being cheated out of money? And consider this: UK banks and lenders used our tax payments to bail themselves out not too long ago and now they’re back paying each other millions in bonuses. To them your full refund might be a night out at a swanky club, to you the money could really make a difference.
Besides, why wouldn’t you want your money back?
If it helps, imagine signing up for a loan as a more regular purchase – say a hat. Imagine the loan was a hat and the PPI was a pair of sunglasses, now let’s go back through points 1 -4 above…
Shop assistant: “So, you want a hat do you? Well here’s what’s going to happen:”
– “I’m going to add a pair of sunglasses to the transaction, they’re for me so I’ll choose them and you’ll pay for them later on when you’re not looking, But I won’t tell you.”
– “The hat is worth £10 but I’m going to charge you £100.”
– “Like the hat do you? Well I’ll only sell you the hat if you buy these sunglasses as well.”
– “I’m going to sell you some sunglasses that don’t fit you and even if you could wear them; the lenses are clear plastic.”
Ridiculous I know, but you wouldn’t stand for such behaviour when buying any other product or service so why is it OK when you buy PPI?
Making a claim is simple enough to do, sure there’ll be a bit of work to do if you go it alone and you’ll need to dedicate some time to it but the payout may well be worth it. Which brings me on to an important point…
Do you not want £2,750? OK, that’s the average industry PPI refund per policy (bolded for a reason, which I will come to) and you may get less or more. Whatever the amount you may have paid monthly PPI premiums for the entire life of a loan, mortgage or credit card – the total amount handed over could be huge and it’s just sitting there waiting for you to claim it. To be fair to the banks, they’ve put the money to one side, it’s up to you to start the process.
The average PPI refund is £2,750 per policy and you can easily have more than one PPI policy. Just think about all of the loans, credit cards, mortgages, re-mortgages, car finance agreements, appliance loans, furniture credit you have had. Every form of credit you’ve ever had may have come with PPI, we’ve had clients with more than 10 separate claims, couples with 20 – one for each policy. We had one client with 14 PPI claims, of which 11 resulted in payouts.
Failing all of that, if you’re not interested in claiming unfair payments back or justice then look at it this way: you’ve put money away each month without thinking about it and now you’re simply asking for the lump sum.
Shortcut summary: Being mis sold PPI is like being sold a faulty TV, a hat that’s too big or a £100 banana – you wouldn’t stand for it so why would you not get your money back that you spent on worthless, inappropriate, over-priced PPI? If that alone doesn’t motivate you then the average refund is £2,750 per mis sold policy and you may have more than one policy. Plus why do you want the banks keep your money anyway?
This is part 2/15 – continue your PPI claims education…
PPI Claims 101 – 1/15 | What is PPI?
PPI Claims 101 – 2/15 | Should I Bother Making a PPI Claim?
PPI Claims 101 – 3/15 | How To Claim Back PPI Yourself
PPI Claims 101 – 4/15 | How To Find The Best PPI Claims Company
PPI Claims 101 – 5/15 | No Win No Fee PPI Claims Explained
PPI Claims 101 – 6/15 | What is a PPI Template Letter?
PPI Claims 101 – 7/15 | Credit Card PPI Claims
PPI Claims 101 – 8/15 | Mortgage PPI – The Hidden Windfall
PPI Claims 101 – 9/15 | PPI Claims Deadline – Forget One, Remember The Rest
PPI Claims 101 – 10/15 | The Information You’ll Need To Make a PPI Complaint
PPI Claims 101 – 11/15 | What To Do If Your PPI Claim Is Rejected
PPI Claims 101 – 12/15 | The Financial Ombudsman & PPI Claims
PPI Claims 101 – 13/15 | Payment Protection Insurance Consumer Questionnaire
PPI Claims 101 – 14/15 | How Long Does a PPI Claim Take?
PPI Claims 101 – 15/15 | Do I Need To Pay Tax On My PPI Refund?
Think we’ve missed something? Recommend a topic using the comments section below.
By John Gregory
John writes for a OracleLegal.co.uk as well as a number of financial blogs, he also create content for infographics, FAQ’s and personal finance sites. You can find him on Google+ and Twitter, get in touch – he doesn’t bite. Unless you’ve been mis-selling financial products.
At this time we are continuing business as usual however our team will now largely be working from home. This limits our phone contact availability. Customer support remains available Monday to Friday but please email in to email@example.com with your query. We aim to get back to you within 48 hours. On receipt of PPI refunds our fees remain payable and can be paid via our website www.oraclelegal.co.uk/payments/ or via BACS. We are also working on some other areas of potential claim for you in connection with your PPI and will be in touch shortly where applicable to present this to you.