Are you currently dealing with a rejected PPI claim or are you considering filing a claim which you think may be rejected? Despite over £30 billion being paid to consumers since 2011 for mis-sold PPI, PPI claims are often rejected. However, just because your claim is rejected, doesn’t mean that it’s the end of the road and you may still be entitled to a refund. In this blog post, we explain how PPI works, why a claim might be rejected and what you can do next.
What Exactly Is PPI?
Payment Protection Insurance (PPI) was an insurance product that gave borrowers protection if they lost their job, became ill or disabled or faced any other circumstance that prevented them from paying their debt. While this was a useful product for those who needed it, it was often widely mis-sold to customers. PPI was sold alongside credit cards, loans, mortgages and other financial products — often without the borrower’s knowledge or consent. Since the mis-selling scandal was exposed, claims management companies have been working to secure PPI refunds on behalf of those who were mis-sold the product.
Why Was Your PPI Claim Rejected?
There are a number of reasons your PPI claim may have been rejected. If your policy was taken out over seven years ago, it’s possible that the bank no longer has a record of selling the PPI to you. If your PPI claim gets rejected because it was discovered that you were not actually sold PPI, then this is justifiable.
On the other hand, if you were mis-sold PPI and your claim gets rejected, then you are entitled to reclaim. Regardless of the circumstances, the bank must give a full reason for rejecting your claim.
Why Reclaim PPI?
In the UK, 64 billion PPI policies were sold between 1990 and 2010. In many cases, this was bundled into loans with little or no explanation from sales representatives. It was also often included in loans to people with pre-existing medical conditions who may have never actually been eligible for the product. Other banks and lenders told consumers that a PPI policy was compulsory or that it would improve their credit score.
Even if your PPI claim has been rejected, you still have the right to appeal. A complaint can be filed with the Financial Ombudsman Service (FOS) — which independently reviews financial cases, including PPI claims — within six months of your claim being rejected by the bank.
Referring your claim to the FOS is free of charge and the majority of claims referred are awarded in favour of the customer. However, the FOS has a huge backlog of claims and it may take months, if not years before your claim is resolved. Because of this, it’s worth making your claim if you believe you have a strong case. In this case, it’s vital that you have all of the relevant paperwork for your claim to be considered.
If your PPI claim was rejected and you don’t want to refer your case to the FOS, you may still be able to make a claim under the Plevin ruling. In 2014, Mrs Susan Plevin filed a claim based on the high level of commission made on her PPI sale. The lender, Personal Paragon Finance, made 71% of commission on her PPI sale — this was not disclosed to her. You can make a claim under Plevin to recover the commission amount if over 50% of your PPI sale was a commission. At the height of the mis-selling scandal, the average commission made on PPI sales was 67%.
Has your PPI claim been rejected? Canary Claims is a no-win, no-fee PPI claims specialist with a low fee of just 15% + VAT (18% total) on successful claims. We can gather all the necessary evidence, refer your claim to the FOS on your behalf and guide you through the entire process. We have helped thousands of people claim back money due to mis-sold PPI. Reclaim your PPI today.