What Are The PPI Claim Eligibility Requirements?

Posted on June 3, 2019 by Canary Claims calculator and pen laying on top of a budget

Claiming PPI can be a stressful process for the unenlightened. But before starting your reclaim journey, it’s vital to find out if you are eligible in the first place.

With the deadline for reclaiming PPI nearing, many claimants have already successfully received thousands of pounds in compensation. There are two reasons for this:

  1. They acted fast: With the PPI deadline looming, it is vital for anyone who believes they were mis-sold PPI to claim without delay.  
  2. They were eligible: Knowing you meet the requirements to reclaim  PPI can prevent unnecessary delays further down the line.

The deadline set by The Financial Conduct Authority (FCA) for consumers to contact claims company or banks to reclaim PPI is 29th August 2019.  However, it’s crucial to note that it will take the bank or claims company in question approximately eight weeks to examine your claim — so if you contact your bank or claims company near to the deadline, you could be looking at the end of the year before any result is determined.

But before you do anything, you should ensure you understand the requirements of making a PPI claim.

Eligibility Defined

Simply having PPI is not in itself a reason for lodging a claim. The crucial issue is whether or not you were mis-sold PPI by a bank or lender. If you were sold PPI without your knowledge, or if you were not told that it was optional, then you are eligible to claim compensation and have every right to launch your claim.

Your Circumstances Were Not Considered

PPI may have been sold to you despite your circumstances making it an unsuitable policy for you. If any of the following circumstances apply to you, then there’s a strong chance you will meet the PPI “eligibility requirements”:

Employment Status

If you were unemployed, self-employed or retired at the time you took out a PPI policy inclusive of unemployment cover, you’ll be entitled to make a claim.

Medical Condition

You’ll be entitled to reclaim a mis-sold PPI if — at the time you took out the policy — you had a medical condition that left you unable to work.

Your Age

Age is a determining factor for PPI. If you were older than the upper age limit for your specific policy, then you may be entitled to claim.

Terms of Your PPI Cover

You can also claim if the term of your loan was greater than the duration of your PPI cover  — and it was not explained to you that you would be unprotected towards the end of the loan’s term.  

Commissions Were Earned

You can claim if you were not told about the high level of commission earned by each PPI policy sold by your provider. This issue came to light after the Supreme court’s Plevin ruling and led to the FCA put specific rules in place.

You Believed PPI Was Compulsory

If you felt pressured into taking out the cover and were subsequently not informed about the process for cancelling your PPI, you’ll be entitled to make a claim. One of the major reasons why consumers are entitled to reclaim PPI is because they were led to believe it was compulsory.

Misleading Quote

You can claim if the cost of your loan was inclusive of PPI, but you were not informed.

PPI Cover From Your Provider

If you were told that your loan or credit card providers were the only source of PPI cover, then you were misled and may be entitled to compensation.

You Already Had Cover

If a previous policy protected your payments, but you were not asked if you had cover —  or you were told you had to take out separate cover regardless, get claiming.

No Clear Opt-Outs

You will also meet the eligibility requirements to make a PPI claim if there was no clear opt-out at the time of taking out the cover.

Check Your Paperwork

Having your documents and paperwork to hand can be extremely important to cross-reference PPI eligibility requirements. PPI was commonly sold with products like:

  • Loans
  • Mortgages
  • Credit cards
  • Store cards
  • Finance deals
  • Overdrafts

On the original documents, look out for the terms “PPI” or “payment protection insurance” and check their terms and conditions to give you a clearer indication of what you were sold —  or mis-sold.

Once you’re certain of your eligibility, it’s time to start the process and recoup what you’re rightfully owed. Or,  If you’re unsure about the PPI eligibility requirements, seek advice from a credible claims management company.

Canary Claims can provide you with the best advice and service to ensure you are fully compensated. Avoid the deadline, and start your PPI claim now.