/ Reclaiming payment protection insurance from banks

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Static - on 28 Feb 2013
I am being bombarded with coldcallers offering me the chance to reclaim unrequested PPI. I really hate cold callers but I also really hate banks. So I am considering taking one of these companies up on their offer.


Just wondering if anyone else on here has tried this? Is it worth it? Ta.

knighty - on 28 Feb 2013
In reply to Static:

Just apply for it yourself. I'm no expert, but have seen in mentioned in places that it's very simple. These cold callers would be taking a not inconsiderable percentage of the money that you would be refunded.
LaMentalist on 28 Feb 2013
crustypunkuk - on 28 Feb 2013
In reply to Static:
I went through a company. It took them about six months to come back and tell me I didn't have a case. I then downloaded the forms from the FSA website and filled them in myself- took about half an hour to do. Four weeks later I had a cheque for 16000.
Moral of the story- do it yourself and save the weeks of waiting and loss of up to a third of your award, should you get one!
jezb1 - on 28 Feb 2013
In reply to Static: Do it yourself! It's super easy.

I've got 4 claims going through at the moment. One bank got back to me within 10 days with the offer of a cheque for 750 :)

Visit that link in the post above.
RockAngel on 28 Feb 2013
In reply to Static: I had a call from an nice Indian woman trying to get me to claim back my ppi that I had been mis-sold on a bank loan for 5000 at a bank I had never banked with. I have never had a loan either. She told me she was based in Manchester which was just outside London! Im on the Telephone Preference List so I know it was coming from overseas. Now when they call up, usually at teatime, I start asking them a load of random questions instead of answering their questions and they end up black listing me and dont call me back
Fultonius - on 28 Feb 2013
In reply to crustypunkuk:
> (In reply to Static)
> Four weeks later I had a cheque for 16000.

16000 - jeysus! How many years were you paying insurance for? That's an astronomical amount of money!
Static - on 28 Feb 2013
In reply to Fultonius:

Agreed. Although to be honest, getting 20p back from HSBC would still make my day.

Thanks all for the advice.
Ciro - on 28 Feb 2013
In reply to Static:

The claimback companies are just leaches, taking a third of your money for making a couple of phonecalls and posting a letter to the bank.

As others have said, do it yourself... it's a simple process, the ombudsman provides a template complaint questionnaire that you can just fill in and send to the bank, and if they don't offer to settle within 8 weeks, you send the complaint to the ombudsman and they'll do the chasing for you.

You might not even need to do that - the Bank of Scotland have a dedicated phone line for PPI complaints and took mine over the phone, in a 10 minute call.
crustypunkuk - on 28 Feb 2013
In reply to Fultonius:
It's not the years you've paid, it's the term of the loan. But it was an add on to my mortgage that I 'had' to take at the time.
andy - on 28 Feb 2013
In reply to crustypunkuk:
> (In reply to Fultonius)
> It's not the years you've paid, it's the term of the loan. But it was an add on to my mortgage that I 'had' to take at the time.

No, it's the amount you've paid plus 8% simple interest. If it was mortgage PPI you'd have paid a monthly premium in addition to your mortgage payment rathe than a lump sum added to your loan at the start as was done with unsecured loans - but it is still a large amount.

Just out of interest, what was the reason you were missold it? Successful claims on mortgage PPI are relatively rare as it wasn't as widely missold as unsecured loan PPI and generally the documentation was a lot clearer with regards to exclusions, the fact it was optional etc.
balmybaldwin - on 28 Feb 2013
In reply to Static:

I wasnt mis sold ppi, but I was given a higher interest rate on my mortgage because I refused to take it out. Anyone got any idea if theres a case for having the difference refunded?
Philip on 28 Feb 2013
Pretty paltry sums compared with the thousands that the bankers got from the banks for mis-selling them in the first place :-)
crustypunkuk - on 28 Feb 2013
In reply to andy:
When we remortgaged it was made clear to us by the sales guy that we HAD to take the PPI, otherwise the mortgage wouldn't be granted. Naturally, that turns out not to be the case. The payment we were given was premiums paid, interest on that payment over the term of the loan, plus a small part compensation. The money was used to offset my mortgage, so in real terms i will now own my property 3 years earlier than originally planned. Happy days!
andy - on 28 Feb 2013
In reply to crustypunkuk: nice one, and sensible to pay down your mortgage. Have you got anything to cover your mortgage payments if you lose your job in the meantime though? These policies weren't all shite - indeed one paid my mortgage for six months in the mid '90's and kept us in our house.

I'm quite looking forward to the first "misselling of a PPI misselling claim claim" where someone loses their job and finds that they could have claimed on the policy they cancelled when they claimed compensation and want to claim compensation from Martin Lewis for telling them to claim compensation. If you see what I mean.

It should arrive shortly before the endowment policy-less endowment mortgages start to mature where all the people who pissed their endowment compensation up against the wall have no way of repaying them. "What? You mean I was supposed to pay it off the mortgage instead of going on a cruise?"....
crustypunkuk - on 28 Feb 2013
In reply to andy:
Hehe, nice. I'm now lucky enough that my mortgage payments are brilliantly affordable, and will remain so when interest rates inevitably begin to rise again in the coming years.
As to your point about claiming for claiming- you're sadly right, some people will try that methinks! There always has to be someone else to blame!
chad halfwit - on 01 Mar 2013
In reply to Static:
I popped into my bank for a quick health check 5 weeks ago, nice lady behind the desk asked me if i had ever considered a PPI claim as i had had a loan with them a few years ago, she gave me a phone number for their own claims handling dept, (so no middlemen!) and even the ref for the loan, nearly didn't bother as i really didn't think i would be entitled to anything, made the call, came home yesterday to a tidy little offer of 2.5k that i think i will be accepting! moral, go directly to your lender, one phone call is all it took!
captain paranoia - on 01 Mar 2013
In reply to crustypunkuk:

> Four weeks later I had a cheque for 16000.

That figure starts to explain the sums of money the banks are writing off to pay for this. I had previously wondered just how much people had been paying for loan insurance.

Better keep paying those bonuses, eh? Otherwise the talent responsible for the brilliant financial innovations like toxic loans, PPI mis-selling, LIBOR fiddling, etc, etc, will leave the country.

Oh, hang on...

ps. Any chance of mis-selling of credit card insurance? When I got a card with the scumbags MBNA, they pushed very, very hard for me to take out insurance, and I kept laughing at them; their basic assumption seemed to be that I would run up tens of thousands of debt on the card, and not be able to pay it off if I lost my job, both assumptions very wide of the mark, since I was getting the card i) to get a free stove and ii) purely for the CCA protection, intending to pay off the card fully every month.
ti_pin_man - on 01 Mar 2013
In reply to Static: I agree, if your finance history is simple then do it yourself, in my case its complicated over many years, many addresses and different loan type products so I asked a company to do it... and 2 months later it hasnt cost me anything but I havent seen any money. Everything is still being processed. The claims company are having to work for any money, thats for sure. I honestly dont know if i had products with the insurance or not but thought it was worth seeing if i had.

the new national hobby isnt football, its bank bashing.
andy - on 01 Mar 2013
In reply to captain paranoia:
> (In reply to crustypunkuk)
>
> [...]
>
> That figure starts to explain the sums of money the banks are writing off to pay for this. I had previously wondered just how much people had been paying for loan insurance.

Average claim is less than three grand, because most mortgage PPI wasn't missold. In fact, there's probably rather less misselling than you might be led to believe - but the record keeping was so crap you can't prove otherwise. In my last job we turned down 75% of mortgage PPI claims because they'd never had PPI, and almost every other claim because we had a form, signed by the customer (and in many cases their financial adviser) saying they understood the conditions and the exclusions. We also turned down quite a few because the customer had had rather more paid out to them in payment to cover their mortgage payments - which was, of course, the point of the insurance in the first place. But don't let the fact a product performed exactly as it was supposed to discourage anyone from claiming they were missold it.

> ps. Any chance of mis-selling of credit card insurance? When I got a card with the scumbags MBNA, they pushed very, very hard for me to take out insurance, and I kept laughing at them; their basic assumption seemed to be that I would run up tens of thousands of debt on the card, and not be able to pay it off if I lost my job, both assumptions very wide of the mark, since I was getting the card i) to get a free stove and ii) purely for the CCA protection, intending to pay off the card fully every month.

Credit card payment protection insurance is PPI - it's "payment protection insurance". But if you never had a balance you'll never have paid any premiums.

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andrew breckill - on 01 Mar 2013
In reply to Static: I cannot be unique in never ever taking any payment protection insurance. It reeked of scam from the get go. 8% isn't a bad return in these climes, maybe I should have been mis-sold it.
ranger*goy on 01 Mar 2013
In reply to andrew breckill:

We never took any out either. When our mortgage provider asked us why we didnt want it I told her they did everything to avoid paying out so it was a waste of money. She just said OK and didnt comment further :)
milkyjoe - on 01 Mar 2013
In reply to Static:

Has anyone got any experience of claiming when they no longer have copies of the relevant documentation? Someone in my family thinks they had a credit card from a bank which came with with PPI, but this is going back 10yrs or so and they no longer have the paperwork since they got rid of the credit card not long after. They do know which bank it was with though (prob Barclays).

crustypunkuk - on 01 Mar 2013
In reply to milkyjoe:
I think the time limit on claims is either 5 or 7 years, so after 10 years it may well be time barred.
Ciro - on 02 Mar 2013
In reply to milkyjoe:

The banks only have to keep records for six years after the loan ends - any further back than that and you'll need to produce the paperwork yourself (I found the paperwork from an old loan, and santander did pay out).
Ciro - on 02 Mar 2013
In reply to andrew breckill:

Are you sure you didn't have any?

When I took out a loan with the bank of scotland, I told them in the interview I didn't want PPI. They stuck it on anyway, and just made it part of the regular payment so I didn't notice... I only found out when I heard they'd been doing this and phoned to check.

I was pretty angry when I found out, but you're right 8% was a good return, and I wouldn't have stuck the money in an ISA instead, I'd have pissed it up the wall, so maybe they did me a favour ;)
andy - on 02 Mar 2013
In reply to crustypunkuk:
> (In reply to milkyjoe)
> I think the time limit on claims is either 5 or 7 years, so after 10 years it may well be time barred.

It's not a time limit as such, but the fact the FSA only began regulating indurance sales in January 2005 - it's unlikely you'd be able to claim misselling for a policy sold before that date.

However a lot of people rolled loans (ie paid off the old one early and took another) or held cards after that date so you may have a chance.

It's interesting that there's a view that all PPI was (a) missold and (b) a bad product.

Lots of people knew what they were getting (especially when the rules on disclosure changed about 2009) and lots of people made successful claims. All those folks who think that only stupid people bought it but don't take any action to protect themselves in the event of not being able to work are arguably pretty stupid themselves - as I mentioned earlier we could easily have lost our house in the early 90's were it not for a payment protection policy that paid our mortgage and bills for six months. There's lots of people jumping on the bandwagon, cancelling policies and claiming back premiums then not replacing it with anything - well done Martin Lewis...

milkyjoe - on 02 Mar 2013
In reply to Static:

cheers for the replies. back to finding the paperwork to find out exactly when this credit card ended then.
andy - on 02 Mar 2013
In reply to milkyjoe:
> (In reply to Static)
>
> cheers for the replies. back to finding the paperwork to find out exactly when this credit card ended then.

I'd just ask them - at the worst you can do a subject access request (they might charge you a tenner) and they'll send you every bit of data they have on you. Make sure you know all the addresses etc you've lived at and they should find most stuff.

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