One of the most common questions we get asked by customers is “how do I know if I had PPI?” We’re here to answer this question and let you know how you can make a claim.
Payment Protection Insurance (PPI) is a product that was introduced by the major banks as a way to help provide protection to consumers in the event of a life crisis that would prevent them from paying off debt.
At the right time and in the right circumstances, PPI was a great product. But the majority of banks realised how much profit it yielded so put pressure on employees to sell the insurance. Often, it was sold unnecessarily and unclearly to customers.
As such, thousands of policies were mis-sold to customers. Once the scandal emerged, the banks were fined and started repaying customers who were unjustly sold the insurance. Over £19 billion in total has been spent on the mis-selling scandal from the biggest four banks.
People have been re-claiming mis-sold PPI for nearly a decade. A total of over £32 billion has been paid to customers by the banks.
But, to draw a line under the scandal and encourage individuals to make a claim, the Financial Conduct Authority (FCA) decided to set a PPI claims deadline for 29th August 2019. All claims must be made before this date.
So, the question many people have is, how do I know if I was mis-sold PPI?
How Do I know If I Have PPI?
The first step to check if you had PPI is to investigate if you had any products on which PPI was mis-sold. These include the following financial products:
- Credit cards
- Personal loans
- Secured loans
- Dealership car finance
- Store cards
- Catalogue credit
- Monthly paid insurance
If you had any of these products, you could have been mis-sold the insurance. If you’re not sure or can’t remember the name of bank or lender, it’s possible to check what previous loans and credit cards you had using a credit report checker, such as Experian.
If you can find the paperwork from these products, look for mentions of PPI. It can often have a different name, including (but not limited to) the following names:
- Payment cover
- Protection plan
- Loan care
- Accident, sickness and unemployment cover
If you can’t find the paperwork, this isn’t a problem. You can ask the bank or lender if PPI was on the product. They should be able to uncover this if the product was active within the past six years.
If the bank no longer has your account details (which they might not have after six years), you can find out from a creditor or PPI claims company if PPI was added to your account.
The best claims companies use PPI software that can help locate your past and present debts which may have included PPI. They can do this with simply your name, address history and bank/credit card/financial company name.
How Do I Know If I Was Mis-sold PPI?
There are many ways that PPI was mis-sold. The mis-selling tactics were vast, and in some instances, it was added automatically without the consent of the customer. If you find it on an old account but have no recollection of it being sold to you, this could be the case.
If any of the following sound familiar to how you were sold PPI, it could mean you are eligible for a claim.
Were the costs and benefits made clear?
The consumer needs to be able to make an informed decision about the product on their own. They need to know what costs the policy is adding to their loan or debt as well as what benefits it is providing. A lot of times, consumers involved in this scandal were not given these details.
This now includes if the bank disclosed how much commission it was receiving on a PPI policy. In a landmark PPI case from Mrs Plevin, the court ruled that excessive commission is another form of mis-selling. If the commission was above 50%, you can make a claim about this. Even if your previous claim was rejected, you can make another claim, citing commission or Plevin as the reason.
Were you aware that PPI is optional and not a necessity?
PPI is not required to take out a loan, mortgage or credit card. Some consumers were under the impression that it was compulsory. Some people even refused the product and were still being charged.
Are there any important limitations in a policy that would affect you if a claim were submitted?
A lot of policies have limitations that could prevent you from ever utilising the insurance. Things such as age, employment, and pre-existing medical conditions are all examples of things that could be limits on the policy and should have been asked beforehand.
If you have experienced any of the above situations, then you could have a case against the banks to file a PPI claim.
How Do I Know if I Had PPI on More Than One Policy?
Recent news revealed that some banks did not inform customers about multiple PPI policies or having policies at all — when, in fact, they do.
With this news, we are strongly encouraging customers to contact their bank again and ask about any policies on financial products. When making a claim with Canary Claims, we always inquire about multiple policies as we are aware that may customers had more than one. With 64 million PPI policies sold in the UK, it’s inevitable that some individuals had multiple.
With all these steps, you should now be able to uncover whether you were mis-sold PPI. It’s important to claim within plenty of time before the PPI deadline to beat the rush.
PPI claims company, Canary Claims, can check if you had any PPI policies and can make a claim on your behalf. We offer an incredibly low fee of only 15% + VAT (18% total) and a no-win, no-fee policy. Contact us today to start your claim.