PPI Claim Letter
Majority of the Adult Population in The UK is Making Their Own PPI Claim.
October 7, 2011 By
Majority of the Adult Population in The UK is Making Their Own PPI Claim.
Author: ppi claims
The financial phenomenon, which is the mis sold PPI, has gained a degree of popularity that has affected thousands of people even in the United Kingdom alone. This financial error has caused some serious damages among those afflicted but victims have no idea how it got into their accounts in the first place. Some victims even claim that they did not purchase a PPI to begin with. Until now, authorities are still trying to crack down the people responsible for this financial havoc causing trouble on innocent bank clients.
However with the great percentage of people affected by said policy, there are still many among them who are unaware of what a PPI actually is for. Insurances are one type or form of financial security and this is exactly what a PPI is supposed to offer. PPI or Payment Protection Insurance aims to cover your debt in times when you are unable to do so yourself due to an accident, unemployment or any other circumstance that puts you in a situation where you are unable to get your salary or your means of earning or living. There are varying PPI policies available for purchase and this could be obtained through a broker.
But with the rising number of PPI claims made every day, there is something wrong beyond the textbook definition of what a PPI is supposed to do for you. Some brokers really have gone abusing the PPI and have been giving this as a mis sold PPI to their bank clients. So why do they give this mis sold PPI when all the while they are highly knowledgeable about transactions such as these? What you should know is that a percentage of your payment for your PPI is devoted for the commission of your broker, which means that the more expensive your PPI is, the bigger your broker’s commission will be. This is what a mis sold PPI substantially is—a PPI that causes you any financial trouble could be a mis sold one.
A mis sold PPI is something to be seriously dealt with your broker may have given you this mis sold policy in purpose. Your broker must inform you of every detail, terms and conditions that your PPI is enclosed with. Payment is a crucial detail in this business and if he fails to inform you about this then you can suspect that your PPI might be a mis sold one.
However, do you really have to make a PPI claim ? What you need to know is that a single mis sold PPI can cost you a lot of money and maybe even cause so much damage that a financial recovery would seem dim. A whiplash compensation would be something that you would need in the long run and everybody affected by the mis sold PPI should make a claim for themselves too.
Template Letter For DIY PPI Claim
October 6, 2011 By
Since the Judicial Review on PPI in 2011 it is fairly easy to claim it back yourself.
Just send this letter and be patient as the banks are not able to cope with the huge volume of claims despite being given deadlines by the courts.
[Your address]
The Complaints Department
[Lender’s address]
[Date]
Dear Sir/Madam,
Ref – policy number
I believe I have been mis-sold a payment protection insurance policy and would like to request a full refund of my premiums, plus interest paid.
I took out a £xxx loan/credit card at your [branch name] branch on [date] and also bought a payment protection policy which would cost me an extra £xxx over the life of the loan. [The name of the salesperson who sold me the policy is …] The total amount of my premiums plus interest is £ xxxx.
When I took out the loan, I was told that my application would be refused if I did not also buy a PPI policy. The Financial Services Authority’s advice to consumers is that, while it does not breach FSA guidelines, a borrower should not be refused a loan if they choose not to buy an insurance policy.
Possible additional paragraphs – include any which apply to you
[I also told your salesperson that I had adequate insurance cover through a separate income protection policy.]
[I said I did not need the PPI as my employer provides a generous illness and redundancy package.]
[You are not allowed to make PPI a condition of taking out the loan unless you include the costs of PPI in the quoted interest rate, which you did not do.]
[In forcing me to buy this policy, you have also breached paragraph 8.6 of the Banking Code, to which you are a signatory.]
I do not believe being forced to buy this policy as part of the loan was a fair and reasonable obligation as I did not need this insurance and said at the time of taking the loan that I did not want it.
I am requesting a full refund of all my insurance payments, plus interest, which total [£ xxx].
If I do not receive a favourable response from you I will pursue this claim through the Financial Ombudsman.
Yours faithfully,
[Your signature]
PPI Template Letter – One Example
September 10, 2011 By
There are many PPI Template letters available.
Here is just one which you can send to you lender.
[Your name and address] [Date]
[Name and address of company providing payment protection insurance]
Dear Sir or Madam,
Re: Account number: [Your account number] – Letter of complaint
I am writing in relation to the above payment protection (PPI) policy which I believe was mis-sold to me. I believe you have not treated me fairly for the following reasons;
[Delete the reasons that do not apply to you]
• The payment protection insurance (PPI) was added without my knowledge.
• The sales person selling the insurance was pushy and strongly advised me to take the insurance.
• I was [select from – told I had to take the insurance/told I could not get my [loan/credit card/credit card etc] without the PPI/only provided with a quote for the cost of the [loan/ credit card etc] with PPI attached].
• I [select from - was/knew I was soon to be] [select from - unemployed/self-employed/retired/over the age limit] when I took out the policy and [select from – made your staff aware of this/was not asked about this].
• I was not [select from - asked about any pre-existing medical conditions I suffered from/warned that pre-existing medical conditions could affect my insurance].
• I [select from - was not informed that stress and back problems were excluded from the insurance/informed staff about (your medical condition) but was not warned that this would affect the insurance].
• I was not asked whether I already had any existing insurance or employer benefits that would cover my repayments.
• You have been punished by the Financial Services Authority for failing to treat customers fairly and I do not believe that the PPI I bought was sold in my best interest.
• I was sold a single premium policy that was not fully explained to me as [select one or more from – the whole cost of the insurance was not made clear to me/it was not explained what would be refunded if I cancelled the insurance or if I repaid the loan early].
• It was not explained that the PPI would not run for the full term of my loan.
• When I tried to cancel my insurance [select from - the refund I was offered did not represent a fair refund as is required under FSA guidelines for PPI providers /I was told I could not cancel the PPI without taking out a new credit agreement].
Unless you can prove that the policy was fair and reasonable and that I was treated fairly when I was sold the insurance, I demand a full refund of all premiums, and subsequent interest on these payments, that I have paid in relation to this policy. I also expect 8% interest to be added to each payment I have made as this is the statutory amount a court would pay.
I look forward to your full and prompt response to this letter.
If this matter is not settled within eight weeks of this letter I shall be contacting the Financial Ombudsman to investigate my complaint.
Yours faithfully,
[Your signature]
[Your name]
Claim Back Mortgage PPI Now- Even I You Were Turned Down Before
September 7, 2011 By
Since the Judicial Review found in favour of the consumer the number of PPI complaints to the FSO has soared.
Lloyds Bank accounts for 37,000 of these which is twice that of the other banks.
Natalie Ceeney, chief executive and chief ombudsman, said: “These latest figures show a significant increase in the number of new PPI complaints. This period coincided with the time when most of the high street banks and some other financial businesses had put PPI complaints on hold, because of their legal challenge against the ombudsman service and FSA.
“As a result, complaints in this period about PPI were harder fought, and harder to resolve – particularly if we found in favour of a consumer.”
The FOS expects the number of new PPI cases to be bought against banks to continue to rise as the banks have re-opened cases that were previously put on hold.
What Does This Mean For Your PPI Claim?
If you have previously had your complaint turned down by your bank you must write to them again. They are much more likely to be responsive this time. You can use a template letter or use a good claims management company if you want to save time although you will need to pay for the service as they won’t do it for free. Most charge 20% of your refund.
If you get no joy from your bank join the queue of people waiting for the FSO to uphold the complaint and add your complaint to the growing numbers of complaints to the FSO.
Which PPI
September 6, 2011 By
Which is a great website full of helpful tips and advice for consumers.
They have a PPI (Payment Protection Insurance) section where you can claim back PPI yourself quite easily if you have the time and can write a good letter.
PPI was a very poor deal which made huge profits for lenders and insurers.
If you are not sure if you were mis-sold ppi take a look at the checklist here.
There is no need to use a claims management company if you don’t want to. Just follow the Which Guide and use the Which Template Letters they supply on their website.
Which PPI Mis-selling Checklist
Mis-selling checklist
If you can answer ‘no’ to one or more of these questions, then you may have been mis-sold PPI.
- If 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?
- 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.
What to do next.
If you answered ‘no’ to any of the questions in the checklist you should make a formal complaint as you may be entitled to compensation. Use the Which PPI re-claim tool to get redress.
If you didn’t answer ‘no’ to any of the questions you probably weren’t mis-sold, but you might still want to cancel your PPI in favour of better protection.
PPI Alternatives To Keep You Protected
WHICH Guide To Income protection- How IP works
Income protection will cover you if you are unable to work due to accident or illness
Millions of us have policies like critical illness, private medical insurance and payment protection, sold to us over the years by salespeople who convinced us we needed protecting. However, whilst they were right about the protection, they were wrong about the policies.
The one protection policy every working adult in the UK does need is the very one most of us don’t have – income protection (IP).
What is IP?
IP is an insurance policy which provides you with a regular tax-free income if you can’t work because of illness or disability. The benefit paid is up to a maximum percentage of your earnings – often 50% or 60%.
Policies pay out after you have been off work for a period of time known as the ‘deferred period’, and will continue to pay out until you can get back to work or until the end of the policy term – usually retirement.
You can choose a deferred period of four, 13, 26 or 52 weeks, depending on how long you may be able to survive on any savings or how long you receive sick pay from your employer.
The longer the deferred period, the lower the cost – for example, with some policies a four week period would cost more than twice as much a month than a 26 week deferred period.
Do I really need it?
Ask yourself the following questions. If your answer is no to all three, then you need some form of IP:
Will your employer continue to pay you a percentage of your salary indefinitely if you are off sick?
If not, and you are part of a couple, could you pay all the bills and live on your partner’s income indefinitely?
If not (or you are single) do you have savings you could live off indefinitely?
Remember: Illness, accident or disability can happen to anyone. Currently 2.2 million people of working age will be off work for at least six months because of sickness and disability, and more than 2.6 million people are claiming incapacity benefit.
What Happened To PPI Providers – PPI Judicial Review
Judicial review – Source ‘Which’
Which? published an advert in The Times on 5 May calling on members of the British Bankers’ Association to admit defeat over the PPI judicial review. They did so on 9 May.
Between 25-28 January 2011, the British Banker’s Association (BBA) went to court with the Financial Services Authority (FSA) and Financial Ombudsman (FOS) over the mis-selling of PPI policies.
On 20 April 2011 a high court judge ruled that the BBA lost their case over complaint handling rules on Payment Protection Insurance (PPI).
On 9 May 2011 the British Bankers’ Association announced that it would no longer appeal the ruling of the high court, meaning that the banks must continue to compensate consumers if they were mis-sold PPI.
Judicial Review – a win for consumers
Which? is delighted with this outcome. Which? chief executive Peter Vicary-Smith said:
‘We’re delighted that the BBA has at last seen sense. Hopefully this will be a watershed moment in how banks treat their customers.
We’re calling on members of the BBA to respond to the complaints they may have had on hold as a matter of urgency.
No excuses to delay compensation
There are now no excuses to delay compensating those who were mis-sold this insurance product and we’d encourage anyone yet to complain to get their complaint in to whoever sold them the product and to take their complaint to FOS if the are unhappy with the response.
We hope this outcome sends a clear signal to the banks that they must move on from PPI, cannot get away with poor complaints handling, and must pay up to the roughly two million consumers who have been mis-sold.
Letter Template For PPI Claim
September 6, 2011 By
There are many PPI Claim Template Letters available for you use. Here is an example……………
[Your name and address]
[Date]
[Name and
address of company
providing payment protection insurance]
Dear Sir or Madam,
Re: Account number: [Your account number]
I am writing in relation to the above payment protection (PPI) policy which I believe was mis-sold to me.
I believe you have not treated me fairly for the following reasons;
[Delete the reasons that do not apply to you]
The PPI was added without my knowledge.
The salesperson selling the insurance was pushy and strongly advised me to take the insurance.
I was [select from – told I had to take the insurance/told I could not get my [loan/credit card/credit card etc] without the PPI/only provided with a quote for the cost of the [loan/ credit card etc] with PPI attached].
I [select from - was/knew I was soon to be] [select from - unemployed/self-employed/retired/over the age limit] when I took out the policy and [select from – made your staff aware of this/was not asked about this].
I was not [select from - asked about any pre-existing medical conditions I suffered from/warned that pre-existing medical conditions could affect my insurance].
I [select from - was not informed that stress and back problems were excluded from the insurance/informed staff about (your medical condition) but was not warned that this would affect the insurance].
I was not asked whether I already had any existing insurance or employer benefits that would cover my repayments.
You have been punished by the Financial Services Authority for failing to treat customers fairly and I do not believe that the PPI I bought was sold in my best interest.
I was sold a single premium policy that was not fully explained to me as [select one or more from – the whole cost of the insurance was not made clear to me/it was not explained what would be refunded if I cancelled the insurance or if I repaid the loan early].
It was not explained that the PPI would not run for the full term of my loan.
When I tried to cancel my insurance [select from - the refund I was offered did not represent a fair refund as is required under FSA guidelines for PPI providers /I was told I could not cancel the PPI without taking out a new credit agreement].
Unless you can prove that the policy was fair and reasonable and that I was treated fairly when I was sold the insurance, I demand a full refund of all premiums, and subsequent interest on these payments, that I have paid in relation to this policy. I also expect 8% interest to be added to each payment I have made as this is the statutory amount a court would pay.
I look forward to your full and prompt response to this letter. If this matter is not settled within eight weeks of this letter I shall be contacting the Financial Ombudsman to investigate my complaint.
Yours faithfully,
[Your signature]
[Your name]
