How to Reclaim PPI From Your Bank

Posted on June 20, 2018 by Canary Claims reclaim PPI checklist

With just over twelve months until the PPI deadline, now is the time to reclaim PPI.

Payment Protection Insurance (PPI) is a policy which was mis-sold to millions of people. For nearly a decade, the banks have been paying customers who were wrongly sold the insurance. But now the Financial Conduct Authority (FCA) has set a deadline for claiming back mis-sold PPI. To reclaim PPI, you must act before 29th August 2019. The clock is ticking and everyone should act soon to make sure their PPI claims are submitted on time.

The PPI Scandal and How PPI Claims Began

Payment Protection Insurance (PPI) was a policy primarily sold with loans, credit cards, and mortgages. The policy was excellent for some customers as it covered repayments if a customer couldn’t pay due to unemployment or sickness. But the banks saw PPI as a very profitable product and put pressure on employees to hard-sell the insurance. As a result, millions of PPI policies were sold, often unnecessarily and without consent.

Although the majority of PPI was mis-sold during the 1990s and early 2000s, some policies do date back to before this. But it wasn’t until 2005 that the full extent of the scandal was realised.

In 2005, the Financial Services Authority (since changed to the FCA) highlighted that it wanted to investigate the sale of PPI. The following year, the FSA began fining various banks and lenders for how PPI was sold to consumers.

It was in 2011 that a landmark court ruling forced the banks to deal with PPI claims and pay back customers who were mis-sold the insurance.

Since then, millions of customers have made PPI claims. Collectively, the banks have paid customers £30 billion for successful mis-sold PPI claims. With 64 million PPI policies sold, the likelihood that you had PPI is high — even if you don’t remember buying it.
It’s worth checking if you did have PPI and making a claim for your money. Here, we’ll explain the steps you need to take to reclaim PPI before the impending deadline.

Why is There a PPI Deadline?

The PPI deadline was set by the FCA to prompt people to make a claim, rather than continually putting it off. Announced in August 2017, the FCA felt two years would be a sufficient amount of time to make a claim. Since the announcement of the deadline, millions of customers have contacted their banks and PPI claims companies to reclaim PPI before the deadline.

The ‘Have You Been Mis-Sold?’ Checklist

If you’re not sure if you’ve been mis-sold PPI, here is our simple checklist of questions to ask yourself:

  • Did you take out a loan, credit card or mortgage between 1990 and 2010? There were 64 million PPI policies sold in total, meaning it’s likely that you could have been mis-sold PPI on one or more of these financial products. Some PPI policies were sold before 1990, but it may be difficult to find evidence of this.
  • Do you remember being told PPI was compulsory? Many customers were told that PPI was a necessary add-on and that they couldn’t get their loan or credit card without it. If you remember this happening to you, you were definitely wrongly sold PPI. There are a number of other ways that PPI was mis-sold — see the details below in our step-by-step guide.
  • Do you have the paperwork? Even if you don’t have your paperwork, don’t worry, you can still reclaim PPI if it was wrongly sold to you. If you do have the paperwork, PPI will be listed if you were mis-sold the insurance.

Step-by-Step Guide to Reclaim PPI

We know that reclaiming PPI can be time-consuming for many people, from finding the paperwork to the constant back-and-forth with banks and lenders. That’s why we’re here to do the work for you. For a small fee, we take the hassle out of making a claim.

1. Use the Canary Claims Contact Form

Like many people, you might not be sure if you can reclaim PPI because you can’t remember if you ever had the insurance. The first step is to complete our simple online form with a few details such as your name, address and how many PPI policies you think you may have been mis-sold.

2. Wait For Us to Uncover Any Mis-Sold PPI

After confirming your details and any information about previous credit cards, mortgages or loans you’ve had, we will find out if you ever had PPI. If you dealt with multiple banks and lenders or if your PPI policy is old, this can take a while, but we won’t give up until we’ve done a thorough search on your behalf.

3. We Will Reclaim Your Mis-Sold PPI

If we identify PPI on any old accounts, it’s now time to start your claim. We will gather the information on how the PPI was mis-sold. PPI was mis-sold in a variety of ways and sometimes added to the product without the consumer’s knowledge. Other forms of mis-selling included telling consumers it would increase their likelihood of being accepted for credit, or without telling consumers the full terms and conditions of the policy.

4. Wait For Your Result

The bank should reply with an outcome within eight weeks. Unfortunately, some banks and lenders require follow-ups and communication to ensure a claim is resolved quickly and efficiently. At Canary Claims, we do all of this for you. If your claim is successful, you’ll receive your money and we will take a small percentage for the work we have done for you. If your claim is unsuccessful, you won’t pay us anything! However, we can refer your case to the Financial Ombudsman, which will independently review your case.

It’s worth bearing in mind that the Financial Ombudsman has a huge backlog of PPI claims to work through, meaning you could be waiting two years for a resolution. If we believe you have a strong case, it’s worth referring your case to the Ombudsman to allow you to reclaim the PPI you’re owed.

How to Claim PPI if You’ve Previously Been Declined

If you’ve previously made a PPI claim that was unsuccessful, this is not the end. A new ruling called Plevin gives you the chance to claim again — and this time you could win your case.

You’ve probably never heard of Plevin — it refers to a Mrs. Susan Plevin and her precedent-setting PPI case against Paragon Personal Finance. During her case, it was revealed that 71% of the PPI sold to her was a commission on the sale. This was not disclosed to her during the sale and, as such, she received a refund.

Plevin has given thousands more people the opportunity to make PPI claims under this rule. If more than 50% of your PPI sale was a commission, you can claim a refund for the additional amount over 50%. On average, banks made 67% in commission on PPI sales, so if you successfully make a PPI claim under the Plevin ruling, you would receive a refund for the 17% extra.

If your previous claim has been rejected, making another claim under Plevin is worth it. Many people have claimed back thousands of pounds from their bank under this rule. The process of making a Plevin claim is identical to any other PPI claim — follow the same step-by-step instructions above.

The important thing is to act now. Although August 2019 may seem like a long way off, the deadline will soon arrive. The banks are busier than ever, so starting sooner means you will receive your money sooner and don’t risk losing what you’re entitled to.

Canary Claims are ready to start your PPI claim today. With 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 only 15% + VAT (18% total) on successful claims, we’re the best choice for your case.