Claims against the bank for mis-sold PPI

 

By Bhavisha Parekh

We all have bank accounts and debts such as mortgages, overdrafts and loans. Alongside these debts we also have various fees or charges. These fines and charges can be a bother to pay and trying to clarify with a bank what all these charges are for can sometimes be an even bigger hassle.

In recent years there has been another bank menace – Payment Protection Insurance (PPI). PPI is a type of insurance which covers current outstanding debt, usually a loan or overdraft and it is usually sold by banks as an add-on to your loan or overdraft. How PPI works is that if the borrower were unable to pay the debt for reasons such as falling ill, death, or redundancy, the insurance would pay out the loan/over draft instalments for a certain period of time until the client had made alternative arrangements.

So far PPI has seemed like a positive idea, angelic even, something to help a vulnerable consumer – however in recent years over 200,000 clients have bought claims against their financial providers in regard to PPI, including 100,000 in the past financial year. At the moment 5,000 cases are being lodged per week, and about three in four complaints have been upheld.

The reason for these claims?

The reason for these claims has been that very often clients have been mis-sold the PPI or at times not even informed that PPI has been taken out for them, resulting in the client having to pay monthly charges for a product which they never prescribed too.

Another complaint by clients has been that when taking out the PPI they were informed it would cover certain circumstances, but then being told they cannot claim at a later stage. An example of this would be a client I spoke to last week. The client had taken out PPI for their mortgage in 2003, and at the time she was ensured that the PPI would cover illness, critical illness and death.  In 2010 the client was diagnosed with cancer and when trying to make a claim under the PPI she was refused. The bank stated that the PPI she had taken out did not cover critical illness for persons aged over 65. However the bank had been more than happy to received payments for critical illness cover after the client had reached 65.

Remedies

At Caven we have assisted many individuals by recommending a solicitor who specialises in financial claims.  By using a specialist solicitor clients have been repaid their PPI premiums, plus interest in cases where the bank concludes that the customer would not have bought the policy in the first place if they had been fully aware of the policy's details. Some clients have been compensated even after banks have initially rejected their claims.

Further, in April 2011 UK banks lost a judicial review which will now require them to review old cases of clients being mis-sold PPI.

Caven can help

If you feel you have been mis-sold PPI and would like the assistance of a solicitor, or if you would like to discuss your claim with one of our trained telephone advisors, please call Caven on 08001 221 2299 or fill in the web-form above.

Bhavisha Parekh is one of Caven’s most experienced and knowledgeable telephone advisors.

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