At some point, you may have been offered Payment Protection Insurance upon claiming a credit card, a mortgage, or some form of a loan. Dating back as early as the 1990s, this add-on service was offered to help consumers pay-off their balance for reasons such as losing income due to an accident, illness, disability, or even death.
The idea seemed sound: purchasing this will be a benefit in case of an emergency, a contingency plan for those who are more paranoid. While it was an extremely novel idea back in the day, a majority of people this was sold to were in fact, unaware of it. Some may claim that this would be your problem for not having figured it out, but this is, in fact, a good case for a mis-sold claim.
More often than not, any loan, mortgage, or credit card application could have ended up with an avenue to sell you PPI. Should the memory elude you, it might probably help to go over your previous mortgage, credit card, and loan agreements. If you notice the terms “payment cover,” “protection plan,” “loan protection,” “ASU,” or “loan care,” then you were likely sold a PPI.
If even that basic piece of information is lost on you, then chances are high that you were also mis-sold PPI. This add-on service, much like most agreements you must sign-on, is required to be properly explained in full detail for you to understand it.
Most sales agents tend to breeze through the explanations, merely telling you that you will need it and thus you have to purchase it. In some other cases, these were even sold to people who were not eligible at the time, proving that it’s a mis-sold service!
PPI is considered to be a mis-sold service in a circumstance where the policies were unclearly explained or not explained at all. If you were sold PPI but you were self-employed at the time or were diagnosed with pre-existing medical conditions, then you should not have been eligible, meaning it was mis-sold. Furthermore, when at least half of the commission goes to the lender and you weren’t told, then it’s also mis-sold service!
If you’ve filed a claim for mis-sold PPI, then you can expect the compensation to arrive in two parts: a refund and statutory interest. The complete computation involves a total refund of the PPI premium you paid when you were first offered it. Over that, you will receive any interests you have paid on those premiums as well.
To compensate you for the mess, you will also be awarded a statutory interest of 8% for each year since you first purchased the PPI. Take note that this will be treated as savings income for tax purposes and the total amount will already have some tax deducted.
Unfortunately, claims for mis-sold PPI can no longer be made. A deadline of August 2019 was set for all claims, so if you’ve only noticed now, then there’s very little you can do to reclaim that amount.
If this situation sounds like another policy you’ve had previously and are unsure if it was a mis-sold service, then contact our expert in the UK on mis-sold claims now! Get in touch and see what services we can provide for you.