At Middleton Solicitors, we have a wealth of experience in dealing with claims for mis-sold Payment Protection Insurance (PPI), whether it is a policy attached to a credit card, a personal loan or a mortgage. Many people have been sold policies alongside their borrowing with banks such as Halifax, Bank of Scotland, Lloyds Bank, HSBC, Barclays and MBNA amongst others. Similarly, if you have used a mortgage broker, you may have been sold a policy which has added £1000s to your mortgage. If you were unaware of this, or if you were not given adequate details about the true cost of the policy, its terms or conditions, you may be able to claim back compensation.
The current procedures in place mean that you can bring a complaint regarding Payment Protection Insurance directly against a lender or broker, or if appropriate the Financial Ombudsman Service or Financial Services Compensation Scheme, free of charge and you do not need legal representation to increase your chances of success. However, by instructing us, Middleton Solicitors will assist you in the following:
- Deciding whether you have a potential claim
- Deciding the appropriate course of action throughout the pr
- Drafting and preparing all necessary documents
- Liaising with other parties on your behalf
- Ensuring you get the right result
Middleton Solicitors act on a ‘No Win, No Fee Basis’, meaning that we will only charge a fee when the claim is successful, which will represent 30% plus VAT of the award made. If your claim is unsuccessful, there is no fee.
As a firm of solicitors we are regulated by the Solicitors Regulation Authority and we act in accordance with Solicitor’s Code of Conduct. This means that we will be acting in your best interests at all times with complete independence.
If you have any questions on the PPI Claims Process, please do not hesitate to call one of our advisors.
Contact PPI Recovery team
Frequently Asked Questions
Why and how payment protection insurance was miss-sold?
There has been a lot of negative press regarding payment protection insurance, and rightfully so. However, the product itself is not necessarily a bad thing. Such policies were created to provide borrowers the peace of mind knowing that they would be able to meet their loan, credit card or mortgage repayments if there were ever unable to work. However, like a number of other financial products, sales of these insurance policies became more about earning profits for the companies offering them than the protection of their customers. This meant that companies started selling policies to borrowers without any regard to whether they wanted or needed them, or even to people who would never be able to claim under them.
A policy may been mis-sold for as something as simple as you not being told that a credit application automatically adds a policy. Even if you knew a policy had been added, you may not have had any need for the policy, because you had other policies, or cover from work, that would help you meet their repayments, or a pre-existing medical condition may exclude you from claiming under the policy.
Even a policy was suitable for you, the way it was sold may have meant it was mis-sold. In many cases, the actual loan or credit card protected by the policy was used to pay for the insurance, leading to interest and higher repayments. Sometimes, particularly with loans with long repayment periods such as mortgages, the term of the policy did not match the term of the loan meaning that the borrower is still paying for the insurance long after the cover has ended.
Will my claim be successful?
As the above suggests, and much like all legal work, the likely outcome of a case will be dependent on its own circumstances. This includes when the policy was sold, how it was sold and how much it cost. A policy sold face to face in branch will have different considerations to one that is added on an online application.
However it is clear that a large number of payment protection insurance policies, whether they be sold alongside personal loans, credit cards or mortgage have been mis-sold and financial organisation are continuing to set aside large amount of money to deal with future claims for compensation.
At Middleton solicitors, we work on a contingency fee basis, meaning that we will not take a fee if your claim fails. Once you have submitted your claim to us we will assess the information you provide to us and let you know if we believe your claim has a good chance of success. If it doesn’t, we’ll let you know and there will be no charge.
How much compensation am I due?
If a policy was has been mis-sold, the provider should typically put the borrower back into the position they would have been had the policy not been sold. This generally means that they will have to refund all the money paid towards the policy, plus additional interest charged at 8% per annum to compensate you for being out of pocket. However, this may also mean that a refund of any default or late payment charges on the account. How much money this equates to will depend on things like the amount of credit and the length it has been paid back for.
How long will the claim take?
Once a claim has been submitted and acknowledged, the party that sold the policy has 8 weeks to investigate the matter and decide if they agree with the complaint. If they do, they typically try to settle within 4-6 weeks. If they don’t agree with the complaint, or if they fail to provide a response with in the 8 week period, the matter can be referred to the financial ombudsman service (‘FOS’).Unfortunately, at present the number of claims that FOS are dealing with means it could be in excess of 12 months before they access a claim. Whilst this is the case we will push the policy provider as much as we can for a positive outcome before referring it to FOS.
What will I need to provide to make a claim?
As a minimum we will need details of the lender, or lenders, who the credit was with together with the relevant account numbers. If you do not have account numbers, we may still be able to assist but it may add considerable time to your claim.
We don’t necessarily need any of the loan or credit card paperwork. However, it will help us access your claim, and may cut down on the length of the claim, if you are able to provide this. Don’t worry if you are not sure what may or may not be relevant as we look through all your paperwork at the outset and let you know what is needed.
What if…….. ……the company that sold me the policy has gone out of business?
Even if the company has gone out of business, we may still be able to assist. If the policy was sold after 14th January 2005, we can refer the matter to the financial services compensation scheme (‘the FSCS’). The FSCS has different rules as to how long it takes to settle the claim and how they calculate compensation which we will explain to you should we feel your claim needs to be referred to it.
……I have been made bankrupt or entered into an IVA?
If you have been made bankrupt after the policy has been sold, then any compensation due will be due to your trustee in bankruptcy, even if you have been discharged. In this is the case we would not usually act. If you have entered into an IVA since the policy was taken, you should consult with your IVA supervisor before instructing us to deal with your claim as we would only proceed with their agreement. There will be no such issues if you were made bankrupt or entered into the IVA before the policy was sold.
….I am behind on my repayments?
If the claim is against the party who leant the money to you, then they may choose to use any compensation due to pay off some or all of the arrears, meaning that you may not receive any cash refund. Whilst you may not mind them doing this, our fees will remain due. It is therefore important that you let us know if there are any arrears on the account and we will let you know whether we will be believe it is in your best interests to proceed with the claim.
….I have claimed under the policy whilst I was unable to work?
Just because a claim has been made under the policy, it doesn’t necessarily mean that the policy was not mis-sold. It could be that the policy was overpriced or that you were excluded from claiming under other parts of the policy. However, any amounts claimed will be deducted from any compensation due so you should consider if the cost of the policy was more or less than the benefits claimed.
….I have already complained about the policy?
If you have already made the complaint and I have been provided with a final decision which you are not happy with, you have 6 months to refer to the financial Ombudsman service. If this period has expired, then we will not able to help. If it is within this period, we may be able to assist in limited circumstances but you would have to provide us with all the paperwork and correspondence that you have received in respect of the complaint.