Reclaim payment protection insurance on loans

Can you claim back your PPI on loans? Did you take out payment protection insurance over the last six years? A huge percentage of PPI policies were missold and can be claimed back in full with interest. We have succesfully claimed hundreds of thousands of pounds for clients. If you’ve got a loan, credit or store card, you urgently need to check whether they included insurance as part of it. If so, without realising, you could be paying £1,000s for potentially worthless cover.

The misselling has often been systematic, banks forcing staff to sell these policies or face lower pay. You may have been told the insurance was compulsory… IT ISN’T! That alone counts as mis-selling. Plus the self-employed, unemployed, retired, those with pre-existing conditions, or who are covered elsewhere, have all commonly been sold unnecessary policies.

To find out if you qualify for your PPI policy money back in full please contact us

You could be entitled to claim if at the time of the application your lender

  1. Gave you the insurance when self employed or unemployed
  2. Did not ask if you already had cover for the loan
  3. Did not make you aware you could get the cover elsewhere
  4. Ask if you would over 65 by the end of the loan
  5. Ask if you had any pre existing medical conditions
  6. The repayments lasted longer than 5 years
  7. The lender added the insurance onto the loan upfront
  8. Did not tell you the seperate calculation for insurance repayments
  9. Told you it would help pass the application
  10. Told you it was compulsory

CLICK HERE TO SEE IF YOU CAN CLAIM BACK YOUR PPI

The Financial Services Authority (FSA) has fined numerous banks and financial lenders for the mis-selling of PPI. A few of the main culprits are more familiar than you might like.

 

Alliance & Leicester were fined £7million largely due to the fact that telephone sales staff had failed to make it clear that insurance is optional. Staff training tactics
include aggressive sales techniques aimed to put pressure on the customers who questioned PPI. The company has apologised and also promised to pay back any customers who have lost out through PPI mis-selling. Customers can be assured that the lender is taking this matter very seriously.

Egg, a large credit card company, has also been fined £721,000 by the Financial Services Authority due to serious failings in approximately 40% of their telephone sale to customers. Cases have been reported were PPI was added to customers’ credit cards even without their consent. For those customers who turned down PPI, they were met with sales staff using ‘objection handling’ techniques taught in training sessions which included over-emphasising the benefits of PPI or advising them that they could cancel at a later date if they decided they did not need it. Egg is likely to pay out a substantial amount of compensation which is estimated to total around £1.67million for every 10% of customers who receive a refund as a result of inappropriate sales techniques.

Capital One is also a major credit card provider and in 2007 they were fined £175,000 for the mis-selling of PPI. The FSA has said that Capital One have failed to provide ’adequate systems and controls’ when they sold the insurance product.

GE Capital Bank was also fined £610,000 for the same reasons and also for failing to treat their customers fairly.

Liverpool Victoria Banking Services (LVBS) were fined £840,000 plus compensation for unclear and misleading sales practices relating to PPI. The FSA found over 60% of 97 sales calls to be non-compliant as the cost of PPI was added to agreements without the customer asking for it, consenting to it or even knowing about it. When reviewing the calls, the FSA found that, if a customer stated that they did not need or want to purchase the insurance and objected to the sale, LVS representatives would pressure them into accepting the product. LVS are also under investigation for mis sold mortgages. Even more disturbing, the cost of the premium was added to the loan and so customers had to pay additional interest on the unwanted product too.

HFC Bank were fined £1,085,000 for failing to take reasonable care to ensure that the advice provided to customers when purchasing PPI was suitable, and for failing to have
adequate systems and controls in place to monitor the sale of PPI and the AA has been branded the company to offer the most expensive PPI policies by the Times online.

Blackhorse are also amongst the list of lenders being accused of mis-selling PPI with the main allegation against them being that the interest rate they offered to customers who chose to take out PPI was significantly lower than the interest rate on the same loan amount for those who didn’t want PPI.

Three firms: Regency, Loans.co.uk and the Home Shopping firm Redcats have also been handed fines for mis sold mortgages and selling payment protection insurance to customers that may not have needed it. Redcats were fined £270,000.

It is strongly advised that anyone who has a loan, credit card or mortgage should check their agreement to identify whether or not they have a Payment Protection Insurance policy. If this is the case and you think it could have been mis sold to you, then you should consider making a complaint.