A PPI claim is where the customer who has Payment Protection Insurance (PPI) attached to a facility. Facilities can range from anything from personal loans through to credit cards, store cards, mortgages, secured loans, and even business finance such as business loans and commercial overdrafts. Barclays, in particular, offered a personal overdraft insurance which they used to sell.
Once established if PPI was applied to any of these facilities, a claim can then be made against the Bank with regard to whether the policy was sold as it should have been by the lender and the sales personnel, and whether the client was provided with the protection that is required, by Law, to receive. This is monitored by the Financial Services Authority (as it was then known) and now known as the Financial Conduct Authority (FCA).
If it is established (as it is in the majority of cases) that the policy was mis-sold, and the client was not provided with the protection that they should have been when taking out the policy, then they can obtain a refund.
That refund would include any PPI premiums which had been applied (whether it was by a lump sum or a monthly sum debited from whatever facility that they had), in addition, there would be the interest on the premium which is calculated at the prevailing rate of the facility. This can mean that anything concerning a credit card could be high, as the prevailing rate of a credit card itself is sizeable. On top of both these figures is added the compensatory interest which is set at a rate of 8%. Again, depending upon the actual figures and time of PPI, this can again mount the claim to a substantial level.
Up until the end of 2015, there have been approximately £30billion worth of claims spread over around 12 million to 13 million policies. However, in trying to calculate the number of policies which actually remain unclaimed, it is extremely difficult, as the only figures available are the numbers of policies which were taken out between 2001 and 2009.
Bearing in mind the super complaint in relation to PPI started in 2006, which the Banks were aware of, they started to gradually drop selling from this point. So, if we extend the period where policies were taken out to their heyday of the late 1980s and 1990s, then the 40 million to 50 million policies taken out between 2001 and 2009 needs to be multiplied further. There could therefore be a further 300 million policies in total! Therefore, the number of policies that have not been paid up to date (totalling possibly £10million, £12million or even £15million) means there is still an incredible number that remain unclaimed and waiting for the right moment for people to make their PPI claim.
The vast majority of people who have not made a claim to date are reluctant to do so, because they feel they are just not able to do a claim, for whatever reason. It could be because they do not have any paperwork, or they do not know any account details and feel that they are unable to make any claim due to this reason.
The other main reason is the length of time that has passed. People believe that there are time bars in place, which there are not. Anyone can make a claim at any time, regardless of not having any information or indeed whether they know that PPI was applied, or not. Of course, due to the passage of time, the majority of people do not know whether PPI was applied to any facilities in the past, which means that they are therefore reluctant to want to ruffle any feathers and look at any facilities.
However, we urge anyone who has not yet made a claim against PPI, but who have had borrowing facilities in the 1980s, 1990s and 2000s with any lenders, regardless of what type of facility it was that they had with them and regardless of whether they know any information concerning the PPI or have any paperwork at all, that they contact us.
We can look at this on their behalf, all on a “No Win No Fee” basis in order to establish whether PPI was applied and, if so, look at making a claim on their behalf.