Frequently Asked Questions

Payment Protection Insurance (PPI)

Due to the competitive nature of the financial Services Industry, lenders have had to reduce lending rates to remain competitive. This has caused a drop in revenues on Unsecured / Secured Loans, Credit Cards and Mortgages. Whilst PPI was sold as a benefit to insure the borrowers, as they received anything up to 85% of the Premiums in commission, it may have also been sold as a way of increasing Lender revenues to offset their reduced lending rates.

Some PPI policies may be unsuitable to borrowers in certain circumstances. Policies may not be suitable for the self-employed if they only cover redundancy. Some have so many exclusions that borrowers are often unable to make a claim if the worst does happen.

PPI policies sold by credit card companies, banks and lenders can be overly expensive and are sometimes forced upon the borrower as part of the approval process or hidden within the debt repayment schedule. Debts may be increased by up to 25% to cover the cost of PPI policy.

PPI: What is Payment Protection Insurance mis-selling ? How do I know if I have been mis-sold Payment Protection Insurance?

The plain fact is that a number of PPI policies sold to protect borrowers from their debt in reality offer no protection at all and are simply a revenue stream for the lender. Borrowers may be unaware they are even taking out PPI as they go through the application process.

Lenders may offer low rates that are only commercially viable to them with the addition of a PPI policy and the may also mis-sell PPI policies with sweeping statements such as 'Will pay off your debt' or 'Will safeguard your family' when in fact the product they are selling may be completely inappropriate to the borrower and offer no such security.

PPI: Can I claim compensation for Payment Protection Insurance (PPI) mis-selling?

If you feel that, when you were sold your PPI policy, the salesperson failed to explain exactly what you were purchasing, or you were forced to take out the PPI policy by your lender, you may be able to claim compensation. Also, if you were sold an unsuitable policy while self-employed, unemployed or retired, you may be able to make a claim. The main question is did they mis-sell the payment protection insurance policy to you?

A variety of circumstances exist for determining whether you have a mis-sold Payment Protection Insurance PPI claim, eg:

• Out of work or self-employed at the time when the PPI policy was sold to you? - you probably cannot make a claim so it is effectively worthless
• The Lender did not disclose that fact that they would receive anything up to 85% of the Insurance Premium in commission
• Forced into taking the PPI policy, in order to secure your loan? - you should have had the option to obtain it from another, cheaper supplier
• Not asked at the time of sale whether you already had a similar policy in place? - if you already had loans, financing arrangements or a mortgage in place, you may well already be covered or could have obtained an extension to that cover more cheaply.
• No notification of exclusions? - which might prevent you from making a claim under the policy
• No notification that you can get it from other sources for a fraction of the cost?
• Receiving a considerable amount of pressure to buy it?
• Paying a lump sum for the PPI without receiving advice that it is possible to make the payments on a monthly basis?
• Paying a lump sum up front for the policy, but then paying the loan off early without getting a refund of that insurance premium?
• When increasing your borrowing, the Lender automatically included PPI on your new Loan?
• The Terms and Conditions were not been explained to you?

If any of the above points are relevant to you, then you could have a Payment Protection Insurance Claim for compensation of a mis-sold policy.

BANK CHARGES: How can I have my bank charges refunded when those charges are published in the bank's terms and conditions?

The charges are unenforceable and can be recovered because they are too high. Just because the banks say they were published and you have agreed to them does not mean they are fair! With our Financial Services Background and the expertise of our Panel Solicitors we will challenge the banks' charges on your behalf. We believe we can get your unfair penalty charges refunded.

BANK CHARGES: Will my bank close my account if I claim back these charges?

Some banks have taken this stance. However, The Banking Code Standards Board has advised Banks "to ensure that they do not make a disproportionate response to customers claiming back these 'default' fees and treat the customers sympathetically and positively in accordance with the provisions of Banking Code section 14."

The Financial Ombudsman Service has also criticised at least one bank for this practice, but it is unclear whether the banks will comply with this.

As a precautionary measure, we recommend that all claimants open a new bank account that can be used in the event their bank decides to take this negative approach.

Our Panel Solicitors take great effort to establish a professional relationship with all the banks they deal with. Their communication should not provide any cause for substantial break down in your relationship with your bank.

BANK / CREDIT CARD CHARGES: How do I know how much I have been overcharged?

You will have an idea of your Charges by reviewing your Bank / Credit Card Statements, however, our Panel Solicitors will obtain the full amount you have been overcharged from your bank or Lender, along with any applicable interest which may be claimed on your behalf also..

BANK / CREDIT CARD CHARGES: I have an account, which has been closed for some years now. Can the charges I paid still be reclaimed?

Yes. You can usually claim unfair Bank / Credit Card charges for up to six years from the date you claim on any account, whether the account is open or closed.

BANK / CREDIT CARD CHARGES: I have already started to claim my charges back from my Lender but I am worried that I might have to go to court and represent myself against my bank. Can you still help me now?

Yes, in most cases as long as you have not served Court papers on your Bank or Lender.

BANK / CREDIT CARD CHARGES: Could I make a claim on my own?

Yes. There is a number of self-help websites set up to help consumers. Typically, consumers under-calculate what is due to them, as they do not fully appreciate their full entitlements or don’t know how to calculate them.

• By using experts, your claim is likely to be substantially higher.
• Have you got the time to enter into protracted correspondence with lenders?
• Do you know your full rights?
• Do you know the obligations on the lender?

If you are offered compensation, would you know whether it was the correct amount or considerably understated?

CREDIT CARDS: I have a Credit Card with these charges on. Can you claim them as well?

Yes. We can reclaim wrongly applied charges on any Credit Card or Store Card account.

UNFAIR / UNENFORCEABILITY CLAIMS: Other Claims Management Companies have advised that they can get my debts written off, is this correct?

There are many claims Management Companies stating that they can write off your debt without explaining the full facts,

In our opinion your debts would not be written off, but would be deemed as unenforceable, the Lender would therefore not be able to legally enforce your debt and you would therefore not be required to make any further payments. However you do need to be aware that Lenders may still maintain your Credit Bureau Payment Profile indicating that once you have ceased payments, you would then be in arrears with an outstanding debt and whilst a Notice of Correction can now be placed against your Credit Bureau Profile, stating that your debt has been deemed legally as unenforceable, your credit rating may still reflect the fact that you are no longer paying your debt and this could be taken into consideration by banks and Lenders for your future requirements.

The issue of whether or not a Clients Credit Bureau Payment Profile should be removed if the debt is deemed unenforceable is under review.