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PPI refund - are you eligible to Claim?

Payment Protection Insurance (PPI) has developed a notorious reputation in the UK financial landscape. It was meant to provide financial protection to consumers in the event of unforeseen circumstances that prevented them from repaying loans or credit, however, PPI became a poster child for financial mis-selling. You may still be able to claim if you have not received a full refund for your PPI payments. 

What is PPI?

PPI was a financial product designed to cover loan or credit card repayments in the event of illness, unemployment, or other unforeseen situations that would prevent you from meeting your payment obligations. While the intentions were good - providing a safety net for borrowers - the outcome was not. 

What should have been a lifeline for consumers turned into a major financial scandal. The problems with PPI largely revolved around the way it was mis-sold to countless customers. UK consumers were out of pocket for billions of pounds because of the PPI scandal.

A massive number of complaints were ultimately made for unnecessary PPI payments and many people did receive some form of PPI refund. However, even with over £38 million paid out, people still have not been fully compensated. 

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How was PPI mis-sold?

PPI was mis-sold to people who didn't need it, didn't want it, or didn't even know they had it. Some of the most common mis-selling tactics included failing to explain the policy adequately, adding PPI without the borrower's consent, and targeting vulnerable individuals who wouldn't benefit from it. It was also made difficult when actually trying to claim on a PPI policy. 

The information and environment around PPI in financial institutions made the culture of mis-selling common-place. People were often pressured into getting PPI by sales staff who implied they would be refused for a loan or credit card if they did not take it. 

In some of the worst cases of PPI fraud, unscrupulous brokers forged signatures on application forms or added PPI policies without the borrower’s knowledge or consent. 

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How do you know if you had PPI?

If you are unsure whether you have been a victim of PPI mis-selling, a good starting point is to examine your loan or credit card agreements. Look for terms like "payment protection insurance," "loan protection," or "credit insurance." You can also contact your lender and ask them directly about any PPI policies associated with your account.

Determining if you were mis-sold PPI involves understanding the circumstances around the sale. If you were pressured into buying PPI, it was added to your loan without your knowledge, or you were not properly informed about the terms and conditions, you may have been a victim of mis-selling.

The following questions can guide you to whether you were mis-sold PPI: 

  • Did you need PPI?
  • Did you understand what PPI was and how it worked?
  • Did you agree to buy PPI?
  • Were you pressured into buying PPI?
  • Was PPI added to your loan without your knowledge or consent?

The new legal action for a PPI refund

Up until 29 August 2019, you were able to make a claim for a PPI refund through the Financial Ombudsman. Now legal proceedings are the only viable option for compensation. As claims have been brought individually, large financial institutions have  been able to make the process complex, expensive and time consuming. 

The best way forward is for all people still due PPI compensation to unite as a  to unite as a group and make a claim together. Harcus Parker specialises in group litigation claims such as this on behalf of consumers and others. We’re able to operate on a no-win,  no-fee basis as the claim is fully funded by a large litigation funder. This enables us to fight on your behalf on a cost-effective and risk-protected basis.

To be able to make a claim, you need to send a Data Subject Access Request to the relevant bank or credit card company to discover how much secret commission you were charged. The response to these request is often extremely slow and involves specific procedures that need to be followed. This is why a group legal action is a better and more efficient way to deal with this institutions.

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Can I join the claim if I have already received a PPI refund?

If you did not receive a full refund, it is highly likely that may still be due further compensation. You will need to determine if you received less than a 50 per cent refund of the secret commission you may have been charged. We can help you determine this as part of your application to join the group claim. 

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How to Join the group PPI refund claim

Hundreds of thousands of consumers were charged unfair and secret commissions around PPI. It is our goal to ensure that they get justice and fair compensation. 

We’re happy to have already been instructed by over 330,000 individuals to find out if they qualify to be part of the group claim. For 15,000 individuals we’ve already determined that they were charged secret commissions and their claims are being prepared. 

If you think you may qualify, please fill out our quick, online application so we may begin to work on your behalf. 

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