Still have questions?
Check out the answers to some of our most asked questions.
The Financial Ombudsman (FOS)
The Financial Ombudsman (FOS) do offer free support you can find more information at http://www.financial-ombudsman.org.uk/
51%*of PPI claims that were submitted to FOS were resolved in favour of the consumer. Here is a small sample of lenders who said that PPI was not mis-sold, yet were upheld by FOS.
HFC Bank 87%*
Shop Direct 88%*
Barclays Bank PLC 61%*
Lloyds Bank PLC 64%*
For more information go to http://www.ombudsman-complaints-data.org.uk/
*This is the percentage of cases, the ombudsman service resolved in favour of the consumer in the six-months period from 1 July to 31 December 2016.
How do I send documents to you?
Our Pack, Letter of Authority, Terms of Business – please post these back in the free post envelope provided. If you have not received this, please call the number on the letter and we will send this out to you. Alternatively, please send it to the free post address ‘FREEPOST, The processing Centre, NE1 2LA’.
ID, Utility Bills, Bank Statements, Supporting Evidence – you can scan these documents or take a good quality photo of them and email them to the address on the letter. Or you can post this back in the free post envelope provided. If you have not received this, please call the number on the letter and we will send this out to you. Alternatively, please send it to the free post address ‘FREEPOST, The processing Centre, NE1 2LA’.
Do you have an example of what I will pay as a fee?
We are entitled to receive 24% (inclusive of VAT where applicable. If you started your claims journey before 10/07/18 your fee per T&Cs applies) of redress recovered relating to all accounts with your lenders/defendant, no matter if this was received after the initial settlement, whether the redress was received by way of loan / arrears reduction and/or in cash. This fee may be shared with any introducer(s).
For PPI
Example 1: Compensation is cash in hand
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which all £2000 is cash, we will charge you £480 as our fee. You will receive £1520.
Example 2: Compensation is cash in hand with loan and/or future instalment reduction
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £1000 is cash and £1000 is loan reduction, we will charge you £480 as our fee. You will receive £520 and have your loan reduced by £1000.
Example 3: Compensation is used to offset arrears on credit card or loan
If the agreed fee is 24% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £0 is cash and £2000 is loan reduction, we will charge you £480 as our fee. You will receive £0 cash and have your loan reduced by £2000.
For Other products
Example 1: Compensation is cash in hand
If the agreed fee is 36% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which all £2000 is cash, we will charge you £720 as our fee. You will receive £1280.
Example 2: Compensation is cash in hand with loan and/or future instalment reduction
If the agreed fee is 36% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £1000 is cash and £1000 is loan reduction, we will charge you £720 as our fee. You will receive £280 and have your loan reduced by £1000.
Example 3: Compensation is used to offset arrears on credit card or loan
If the agreed fee is 36% (inclusive of VAT where applicable) and the redress we obtain for you is £2,000, of which £0 is cash and £2000 is loan reduction, we will charge you £720 as our fee. You will receive £0 cash and have your loan reduced by £2000.
I have found the correct account number for my claim, what should I do?
Please contact us immediately so we can update the information on the complaint. This may help speed up the process of your claim.
I have added a claim and realised the lender/defendant name I gave is incorrect, what should I do?
Please contact us immediately to correct this. You will then receive a new Letter of Authority to sign and return in a pre-paid envelope.
My personal details have changed, what do I do?
You can either contact us via email or call us and speak to an advisor who will change your details for you.
I am being asked for further information which I do not have?
If you are receiving requests for further information and do not have this, please contact us and speak to your case handler. We may still be able to proceed with your complaint, but in some cases this will result in closure due to a lack of supporting evidence.
Why am I receiving warnings when I have not received the redress from my lender?
If you have not received your redress from the lender, please contact us. The reason you are receiving warnings is due to the system changing your status automatically, and that is therefore why you are being chased for payment. Please get in touch and one of our advisors will be able to change the status of your claim.
Why do I have to pay tax on the 8% interest?
You have to pay the tax on the 8% interest, which the lender will deduct automatically from your redress amount, as this is classed as an income and we invoice you on the gross amount. Lenders will add 8% interest to a redress. From 1st October 2013, lenders are ordered to remove 20% tax from the 8% interest.
Clients can contact HMRC to request a tax rebate for the tax on the 8%, but this will depend upon the client’s income/salary. If a client is under the current tax threshold/on benefits etc. they may get a refund of the tax paid on the 8% interest. Please refer to the www.gov.uk website for details on the current year tax threshold.
Why am I receiving another Letter of Authority when I have already signed one?
You have received another Letter of Authority to sign as your previous one may be out of date, or the Defendant may be different to the one you previously signed for.
What next? (PPI)
If you have had a PPI claim rejected, this ruling implies there is a new opportunity to commence a legal case to obtain a PPI refund. Our specialist team can guide you through the process if you have a case like Susan Plevin, just complete the form below and we will get in touch or call us on 0191 462 0000
Implications for your PPI claim
Industry watch dog, the Financial Conduct Authority (FCA), expressed that more than 50 per cent commission is unjustifiable. This is giving consumers fresh grounds for complaint.
To put it plainly, if a PPI policy was otherwise legally sound, the consumer could persue a claim if the vender got a large, undisclosed commission.
Accordingly, the regulator has additionally issued new rules.Now all firms need to proactively contact previously unsuccessful complainants to inform them that they may now be eligible to complain under the Plevin rules.
Who is Plevin?
Susan Plevin, made a legal move against Paragon Personal Finance after she had PPI added to a loan. Amid her claim for mis-sold PPI, she found that 72 per cent of her PPI premium was taken as commission by the credit broker, Paragon LLP Processing Ltd and the provider of the PPI, Norwich Union.
Plevin contended that inability to reveal these commission levels amounted to an unfair relationship and fought her case to obtain the return of the full premium plus interest.
In 2014, the case went to the Supreme Court where judge Lord Sumption agreed with Plevin. The judge decided that if a PPI seller neglected to reveal to a client that it had obtained a large commission from the product supplier, the deal was unfair under the 1974 Consumer Credit Act.
What is Plevin?
Plevin (Plevin v Paragon Finance Limited) is a legal case that considers whether the levels of commission paid on PPI premiums are proportionate and reasonable. It additionally takes a look at whether consumers were misled by brokers who neglected to reveal high commission levels during the sale of PPI.
How are PBAs mis-sold?
Whilst there are some PBA’s that have been correctly sold, there are many reasons why one may have been mis-sold. For example:
- You weren’t eligible for the products being offered e.g. there were age or medical restrictions for some of the insurance policies that were not explained at the time of purchase.
- You already had cover elsewhere e.g. you may be covered under a work policy or a personal policy purchased before the PBA.
- You were told that you needed to upgrade your account in order to qualify for a loan or overdraft application.
- You may not have been made aware that a free current account alternative was available.
How do I know if I have a PBA?
In most instances, people who have a PBA will have been sold the account either over the phone, on the internet or in their high-street branch. However, on some occasions, bank accounts have been upgraded to a PBA without the client’s knowledge. To find out if you have a PBA, check your bank statement for a set amount leaving your account on a monthly basis.
What is a Packaged Bank Account (PBA)?
Packaged Bank Accounts (also known as Added Value Accounts or Premium Accounts) are current accounts that have a set monthly charge for additional benefits such as mobile phone insurance, car breakdown cover, gadget insurance and extended warranties. The account fees vary in price from around £6 to £35.
Do I have a valid PPI claim?
If you have taken out a loan a mortgage or a credit card, you may have been mis-sold PPI. Below is a list of reasons as to why it may have been mis-sold; if you agree with any one of them you may be eligible to make a claim.
- You were not aware you had been sold PPI
- You had previous medical conditions when you bought the PPI policy
- You already had cover with another insurance provider
- The Lender did not investigate your financial situation to ensure the PPI policy was the right policy for you
- You were advised to take out the policy to obtain the loan/credit card agreement
- The sales person was pushy and you felt you had to take out the PPI policy
- Depending on your employment status you may not have needed PPI. For example, if you were self-employed, the PPI policy would not apply to you
Why are Lenders paying back PPI?
In April 2011, The High Court ruled that all lenders who have mis-sold PPI must compensate clients. Millions of claims have already gone through the banks and billions of pounds have been paid out in redress. Often cases have ended up with the Financial Ombudsman Service, where the majority of claims that were refused by lenders where actually found in favour of the consumers and they received compensation.
How can I tell if I have PPI?
Some borrowers were sold PPI policies without even being told about it; so you may have a payment protection insurance policy you weren’t aware of. If you have a loan, it is worth checking:
- The original loan documents and seeing if PPI is mentioned
- Whether there are any other unexplained charges included amongst the repayments
- Your banking history to see if there has been any other direct debits you were not aware of.
What is PPI?
PPI (Payment Protection Insurance) is an insurance product sold when taking out a loan, mortgage, credit card or other financial agreement. PPI covers the policy holder for their monthly repayments should they suffer an illness, lose their job or any other situation which results in the policy holder not being able to earn money to meet their commitments.