Mis-sold Payment Protection Insurance (PPI) Claims

Background

Payment Protection Insurance (PPI) is offered to eligible consumers when taking out a loan or finance agreement to cover your monthly payment if for example: you are made redundant, or are unable to work due to illness or injury, or you lose your job. There are clear rules which should be followed by finance firms and advisers, however, independent research (Which?) shows that around 2 million policies may have been mis-sold.

 

Here are some examples of mis-selling:

• You were told that you had to take out the policy to get the loan
• You were told that taking out the PPI would increase the chance of the loan being approved
• You weren't asked about any pre-existing medical conditions
• You weren't told that you could purchase a similar policy elsewhere
• You were self-employed, unemployed or working for an agency at the time
• You receive a similar benefit through your employer e.g. NHS staff, police force, fire-fighters etc.
• It was not made clear to you that the PPI was optional
• You were not told that the PPI was added as a lump sum and that you would pay interest on it

There are also instances where the PPI is added to the loan without the customers consent or knowledge. Also, some PPI policies can be cancelled, and yet many of the customers that we deal with had tried to cancel the policy to be told that they couldn't.

 

A claim can be instigated for PPI that has been paid off or cancelled within the last 6 years or if you are still paying for it. We can also check loan, credit card and mortgage documentation for PPI that may have been added without your knowledge.

Eligibility

Payment Protection Insurance (PPI) is offered by lenders to consumers taking out a loan, credit card or mortgage and can also be called the following:

• Mortgage Payment Protection Insurance (MPPI)
• Credit Card Repayment Protection (CCRP)
• Accident, Sickness and Unemployment Cover (ASU)
• Life and Accident, Sickness and Unemployment Cover (Life & ASU)
• Personal Loan Protection (PLP)
• Payment Protection Plan (PPP)
• Life Cover

LOAN RESOLUTIONS can accept the following claims:

• Policy attached to an existing loan, mortgage or credit card
• Policy with final or last payment made within the last 6 years (policy could have run out or been cancelled)
• Policy was added as a lump sum or paid monthly

If your client has made a claim on the policy, this does reduce the chances of being able to claim that the policy was mis-sold. However, if the client did not receive what you were entitled to under the policy, they may have a valid claim.

Fees

LOAN RESOLUTIONS do not charge any upfront fee for mis-sold PPI claims.

Upon successful conclusion of a claim we ask for 20% of the amount returned to the client as our fee plus £50 to cover administration.

 

We do not have a minimum claim value: a claim worth £300 to the customer will be given the same priority and service as a claim worth £15,000 to the customer.

Commission

Our standard fee to customers is 20% plus £50 for administration. Cases introduced to us will pay 50% of the 20% commission i.e. the Introducer will receive commission equal to 10% of the client's redress amount.

We do however offer an alternative pricing structure: As you the Introducer is likely to visit the customer, assist the customer with the claim forms etc. we can charge a 25% fee enabling the Introducer to earn 60% commission, i.e. 15% of the client's redress amount, to cover their additional costs.

We are able to negotiate the commission split for Introducers that submit a certain volulme of good quality cases.

Process

1. You provide your client with the "Mis-sold PPI Claim Pack".
2. Upon receipt of the forms we will raise your client's complaint with their lender and request a refund of premiums paid including the interest of the associated loan or credit card plus statutory interest.
3. The lender has 8 weeks to respond to your complaint, however, some lenders have a backlog of cases and take a few weeks longer than this.
4. During this time the lender may reject the case, in which case we will pursue the claim further.
5. If the claim is rejected with a final response, the claim may need to be referred to the Financial Ombudsman Service (FOS), Finance and Leasing Association (FLA) or the Financial Services Compensation Scheme (FSCS). We will undertake this on your clients behalf at no additional cost.
6. If the claim is upheld, we negotiate the settlement figure with the lender.
7. When your client receives their settlement, we will invoice for our fee. When we are paid, we will then pay you your commission.

It is worth pointing out that our process beyond the initial complaint letter is not standard. We provide a bespoke service which is tailored to the lender and individual claim.

 

Recent Cases

We can't list all of our cases, but here is a select few that have settled recently:

 

Information coming soon.

 

Ok, I'm interested, what do I do now?

Firstly, we'd suggest picking up the phone and talking to us. We can answer any queries that you have and discuss how we do things in a bit more detail. Alternatively, you can use our contact form to get in touch and we will call you. If you're still happy with everything, you can register with us. We'll send you an Agency Agreement and Ministry of Justice regulatory guidance notes. If you need any supporting material such as flyer templates, mailshot wording, poster design etc. that can all be provided at no cost. If you want to take things further, we can assist you with business cards and website design.