The original deadline to claim mis-sold PPI passed on August 29, 2019. However, you may still be able to make a different kind of claim.
Martin Richardson, director of legal services at MoneyPlus Legal, explains everything you need to know about PPI and how a new Supreme Court ruling has enabled a ‘second wave’ of claims dubbed PPI 2, that could see people receiving more compensation.
Q: What is PPI?
A: PPI, or Payment Protection Insurance, was sold legally until late 2010 with types of credit, such as loans, credit cards and mortgages. Its purpose was to ensure that credit repayments were made in the event that the card-holder or borrower was unable to work. People could make a claim on their PPI and pay off some or all of their debt for a period of time.
Q: Why would I make a claim for PPI 2?
A: If you’ve ever had any credit cards, store cards, mortgages, loans, overdrafts or other types of credit in the past, you could have been sold PPI with them. Under the Consumer Credit Act, millions of people could now be entitled to further payouts. Although a PPI 2 claim has to be lodged in court, law firms like MoneyPlus Legal will take on your claim on a ‘no win, no fee’ basis.
Q. What is PPI 2?
A: In the first wave of PPI claims it was found that banks and financial institutions had mis-sold this insurance product. For example, an unemployed person doesn’t need Payment Protection Insurance in case they are made redundant. However, it has now emerged that banks and financial institutions not only mis-sold PPI but also charged hidden commissions which on average was 67 per cent. Successful PPI 2 claimants will receive between £2,000 and £4,000 on average.
Q: Can I still make a claim?
A: While the deadline has passed (on August 29, 2019) for what I call the ‘first wave’ of PPI claims, you can still make a PPI 2 claim in two circumstances: if you previously made one and it was rejected, or if your complaint falls under the new Supreme Court ‘Plevin’ ruling.
You could submit a claim for Plevin if over 50pc of the cost of your PPI was paid as commission to your lender, but you weren’t aware of this.
Q: What if I want to make a claim for PPI I was sold years ago?
A: As long as you have the proof to back it up, you can claim for a PPI policy you took out 10 or 30 years ago – there is no limit.
Q: How do I check if I can make a PPI 2 claim?
A: You can check your old documentation yourself - such as credit card statements or loan agreements. If you’re unsure, there are many companies, such as ourselves, who can run a check for you. We can submit a check of credit products you had on your behalf and confirm whether PPI was added to it without you knowing or if a considerable amount of commission was taken by the lender in the same circumstances.
There are three sets of people that can now make a claim: customers that didn't make a PPI claim the first time around; anyone who has had a PPI claim refused; customers who were not paid back hidden commission in full.
Q: How do I make a claim?
A: You can make a claim to the lender yourself, however, this can be stressful and time-consuming, and if a case goes to court, you may need a solicitor to act on your behalf. We can help you make a claim and manage the process from start to finish.
Once we have the relevant documentation from you, we’ll send you a Letter of Authority and a Damages Based Agreement. After you’ve signed the agreement, we’ll kickstart the process by contacting the lender to access your file, before confirming if you can make a claim and calculating the value of it. A letter of complaint will then be written and sent to the lender, inviting them to issue the compensation. If they choose not to respond or reject the claim after 28 days, the case goes to court.
If you don’t get compensated, we don’t get paid either, so you won’t lose out if the case doesn’t go in your favour. If there is a pay-out, we take an agreed share; however, we fund the whole litigation process and therefore take the fallout if nothing comes from it.
Visit www.moneypluslegal.com or their FAQs page for more information. For help making a claim, call them on 0161 413 2163 or send them a message.
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