Were You Mis-Sold a PPI Policy on Your Mortgage?

FINANCE

There is no doubt that you’ve heard about payment protection insurance, more widely known as PPI. PPI policies were frequently mis-sold in the 1990s alongside credit cards, loans and mortgages.

The systematic mis-selling means that millions of UK consumers are due refunds from their bank. Thousands have already done this, resulting in substantial payouts. To date, over £33 billion has been paid to customers. It’s estimated that over 60 million PPI policies were sold, meaning some people had more than one. Many individuals have received six-figure payouts from their bank.

If you got a mortgage before 2010, there is a possibility that you could have been mis-sold a PPI policy.

But people now have just over eight months left to make a claim. The Financial Conduct Authority has set 29th August 2019 as the deadline for customers to contact their bank. If you haven’t yet made a claim or would like to make a new claim, the clock is ticking. The aim of the deadline is to encourage people to make a claim if they haven’t done so already.

How to Check for PPI on a Mortgage

Many people can’t remember or don’t even know if they were ever sold a PPI policy. This is because some bank employees added it automatically or told customers that the insurance was compulsory. The first part of making a PPI claim is to check if you ever had a policy.

With any luck, you’ll have saved your mortgage agreement and statements. This is where you can find if any PPI policies are listed. It’s important to note that it could be listed under another name, such as card protector or Accident, Sickness and Unemployment (ASU). It might also be listed as repayment cover, redundancy cover or mortgage payment protection insurance.

Some PPI policies would have been paid upfront, while others will have been included in your monthly mortgage repayments. If you’ve been paying it monthly with your mortgage repayments, you could be due a substantial refund. Many consumers have been surprised at how much they’ve received from a claim.

If you do identify PPI on your mortgage, use a PPI claims calculator to receive an estimation of how much you could be owed.

Start Your Mortgage PPI Claim Today to Beat the Deadline

With Christmas just around the corner, it’s likely that many people have put claiming PPI at the bottom of their to-do list. But, bringing it to the top of your list means that your claim will be dealt with sooner.

As the deadline gets closer, it’s likely that the banks will receive even more claims. Organising it as soon as possible is advisable. A claim can take a number of months to be resolved and having that money shortly after the New Year would be a great advantage.

Once you’ve found evidence of a PPI policy on your paperwork, you can make a claim to the bank stating how it was mis-sold to you. Some banks allow you to do this online, but others will require you to write a letter and include evidence.

If you don’t have time to make a claim or don’t know where to start, finding a reputable PPI claims company can be very beneficial. A company can investigate any mis-sold mortgage PPI policies and make the claim to the bank on your behalf. Always find a no-win, no-fee claims company that charges a low fee. New government regulations mean that all claims companies have a fee cap of 24% (inclusive of VAT), but some of the best companies charge less than this amount.

If you previously made a claim but were unsuccessful, you may be able to try again. This is due to the Plevin rule, which means that if there was over 50% commission on your PPI policy but it was not disclosed to you — even if you knowingly bought a PPI policy — you can make a complaint to the bank.

Don’t delay — start your claim today before the deadline arrives in eight months.

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