Why Are PPI Claims Rejected?

Posted on February 25, 2019 by Canary Claims Woman sat at a laptop reading a PPI claim rejection letter

Everyone who submits a PPI claim wants success from their case. But, why are some PPI claims rejected from the bank, and what can you do about it?

With just seven months left to reclaim PPI, you need to act soon to find out if you’re due a PPI refund. But, if you’re curious to know why PPI claims are rejected and if there is anything you can do about it, we can answer your queries below.

Remember, you need to make a PPI claim before the deadline of 29th August. If your claim has been rejected previously, we urge you to take action and try again before this date. You can claim by yourself or use a claims company, such as Canary Claims, to act on your behalf.

Here are some of the reasons a PPI claim is rejected and how you can submit again before the deadline.

Insufficient Evidence

One reason for a rejected claim could be due to insufficient evidence provided to the bank or lender. If you find yourself in this situation, you may need to submit more evidence to the bank. The more information and proof you can include with your claim, the more likely the bank will uphold your complaint.

The Bank Could Have Made an Error

Many of the banks have falsely rejected some customers PPI claims. Last year, Barclays bank admitted an error after wrongly telling customers they did not have PPI. It said that it has notified all of the customers who were affected.

Since the emergence of the PPI scandal, many of the banks have been set fines by the Financial Conduct Authority for not handling cases correctly.

In the first half of 2018, the Financial Ombudsman Service (FOS) upheld an average of 29% of claims from the consumer. This means the banks reject many legitimate claims. If you think that you have a case, it’s worth submitting it to the FOS as it could result in success. Some banks are worse than others for rejecting claims, for example, the FOS upheld 71% of HFC PPI claims.

Claim Again Due to Plevin

If your claim was rejected, you can claim again under the Plevin ruling. This means that you are complaining about high levels of commission on your PPI policy.

In 2014, a PPI case from Mrs Susan Plevin against Paragon Personal Finance resulted in a new ruling. It was revealed that 71% of Mrs Plevin’s PPI policy was a commission. She argued that if she knew about the high level of commission at the time of sale, she might not have bought the PPI policy.

The case went to the Supreme Court and ruled in favour of Mrs Plevin. As such, it set a precedent for all future claims. Individuals can make a PPI claim about high levels of commission if over 50% of the PPI policy was a commission.

It was common for the banks to have 67% commission on PPI policies at the time. This means that thousands of more people are eligible to receive a refund from their bank. If your PPI claim was previously rejected, you can claim again and state the Plevin rule of high levels of commission as your reason for making a claim.

When your claim is rejected, you must either send it to the FOS within six months of a decision or try and make a new claim to the bank with the Plevin ruling.

Canary Claims can help you to claim again if the bank rejected your PPI claim. We charge just 15% + VAT (18% total) on successful claims. Start your claim with us today.