What does all the jargon surrounding PPI claims mean? If you’re confused, allow us to explain some of these terms so that you can make a PPI claim with confidence.
Do you ever find yourself wondering what all these acronyms surrounding PPI actually mean? Don’t worry, you’re not the only one.
At Canary Claims, we want to make sure that your PPI claim is simple. In this guide, we explain what all the jargon means so that you not only know exactly what you’re claiming for, but can also understand any information that the bank discusses with you. You don’t need to be a financial whizz to know how to make a claim.
Firstly, we address the big question…
What is PPI?
Payment Protection Insurance are the magic words. This insurance was originally a very good product for certain customers. Unfortunately, it was exploited by too many financial institutions. The insurance was intended to cover repayments for those who had taken out loans or financial packages and were unable to make the repayments due to illness, injury or redundancy.
PPI was commonly sold with mortgages, store cards, credit cards and personal loans. 64 million customers were sold PPI, but for many, it was totally inappropriate for them or the insurance was not sold in the correct way.
This means customers were not asked all of the appropriate questions about employment and health or, often, even if they wanted it — sometimes it was automatically added to products.
As such, millions of PPI policies were mis-sold, which is why so many customers are making PPI claims to their banks to get a refund. This scandal started in the 1990s and since 2011, over £30 billion has been repaid to customers.
What is a CMC?
CMC stands for claims management company. For a fee, a CMC will identify if PPI was sold to a customer, contact the bank or lenders involved and deal with all correspondence regarding the claim. Many people can benefit from the services of a claims company if they don’t have time to claim themselves or don’t want to deal with the hassle of making a PPI claim.
Some CMCs have a bad reputation for charging extortionate fees following a claim or charging upfront fees before an outcome has been made. At Canary Claims, we are a reputable CMC with over a decade of experience making PPI claims on behalf of customers.
What is the FCA?
The Financial Conduct Authority (FCA) is the regulator for thousands of financial services and markets in the UK. It works to ensure that businesses are working as they should and acting in the interest of consumers.
As of April 2019, the FCA will be in charge of regulating CMCs. This means making sure that claims companies are working fairly and in the best interests of their customers.
The FCA is currently organising and promoting the PPI deadline campaign. The deadline has been set for 29th August 2019, meaning all PPI claims must be made before this date. Millions of consumers have made successful claims and, with just over a year left, there is still ample opportunity for you to do so.
What is Plevin?
This is a relatively new term, but it’s important to know what it means. Plevin refers to Mrs Susan Plevin. Her landmark PPI case in 2014 changed the landscape of PPI claims and opened up the opportunity for even more people to make a case to their bank.
71% of Mrs Plevin’s PPI sale was a commission. This was deemed by the court as a form of mis-selling and paved the way for others to claim under the Plevin rule. If over 50% of your PPI sale was a commission, you are entitled to a refund from the bank.
What is The Financial Ombudsman Service (FOS)?
The final term you might come across when making your PPI claim is the Financial Ombudsman Service, also known as the FOS. The Financial Ombudsman can independently review financial cases between a customer and financial institution.
In relation to PPI, if your PPI claim is rejected by the bank, but you believe that you are due a refund, you can refer your case to the Ombudsman. It will review your case and can overturn the decision of the bank. However, the FOS handles a large number of claims and it can take a number of months (or even years) for a case to be resolved.
Now that you understand the language surrounding making a PPI claim — you’re ready to start. Even if you can’t remember if you ever had PPI, don’t worry. We can investigate this for you and look through your old accounts to identify if PPI was mis-sold on any loan, credit card or mortgage. All we need is a few details submitted through our secure website.
It’s important to start your claim before the FCA deadline of 29th August 2019. If you have any more questions, we’re here to help.
Canary Claims is the leading PPI claims specialists. We operate on a no win, no fee policy [Cancellation charges may apply only if the claim is cancelled after the 14 days cooling off period. The fee would be based on the work done at the time of cancelling at a rate of £120 per hour and up to a maximum total of £180] and charge only 15% + VAT (18% total) on successful cases. Don’t be put off by all the jargon — start your claim today with us!