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PPI mis-selling and claiming money back from banks question

Veni Vidi Vici

Prominent Member
The PPI insurance issue doesn't affect me but I'm wondering how banks prove you were not mis-sold PPI insurance in the first place? I assume everyone would have signed something to say they wanted this cover, so surely everyone can now claim they were mis-sold can't they? How do the banks work out who gets their money back and who doesn't?
 

GasDad

Remembered (1964-2012)
The PPI insurance issue doesn't affect me but I'm wondering how banks prove you were not mis-sold PPI insurance in the first place? I assume everyone would have signed something to say they wanted this cover, so surely everyone can now claim they were mis-sold can't they? How do the banks work out who gets their money back and who doesn't?

Some of it is very simple - for instance those who were self employed at the time were definitely miss-sold. (As PPI provided no cover for them). Others will be a lot more complicated to prove.
 

Ian J

Banned
How do the banks work out who gets their money back and who doesn't?

As the point hinges on the fact that many people were sold these policies who would have been unable to claim under it I guess that it's down to the customer to prove that he was in that position.
 

DPinBucks

Distinguished Member
As the point hinges on the fact that many people were sold these policies who would have been unable to claim under it I guess that it's down to the customer to prove that he was in that position.
Yes, you'll have to make a claim and prove the policy was not right for you at the time you bought it; or that you didn't know you were buying it (it was often bundled in the small print of card agreements).

Although the onus is on you to prove you were missold, in very many cases, as you say, this won't be difficult. I hope the banks are not now going to be bloody-minded and start digging their heels in over every case. It looks as though they won't, but I wouldn't hold my breath given their past record.
 

Jenn

Distinguished Member
Years ago when we first got a mortgage, our bank tried to include PPI telling us how good it was and cheap and as we worked in the same company it would be a good idea etc. I read the small prints and pointed out to the lady that as owners and directors of our own company we wouldn't be covered. She looked like she knew that but had chanced it in case we did what most people do (sign without reading properly).

Had we not noticed we would now just have pointed out that she knew our situation and still tried to sell it to us.

I think the refunds will be easy for people who wouldn't have been covered under the terms. For others I would have thought it would be harder but not impossible considering that some people seem to have got out of paying bank charges that were clearly set out in contracts they signed.
 

Dony

Distinguished Member
Over the last 12 months I have successfully claimed back PPI on a couple of loans I had taken out (including my mortgage).
It's pretty straightforward, and the only one who was reluctant was my mortgage lender. They replied to my letter, saying that they didn't feel they had done anything wrong. I wrote back, thanking them for their response, but stated that I'd have to take it up with the Financial ombudsman. Within a couple of weeks, the bank then admitted liability and transferred the full amount (plus interest) into my account.

I'm sure people will be tempted to hand over their applications to one of those companies who promise to get it back and then take 20%. Don't do it, it only takes 1, or 2 letters max. If anyone wants a copy of the letter I sent then pm me (I'll only want 5% ;)).
 

jp_bl_68

Prominent Member
Someone showed me this the other day, made me laugh:

Square Mile News (City Sleuth) said:
Bin Laden latest: Documents reveal Al Qaeda leader paid ‘over the odds’ for PPI


Details released by the US government have revealed that the last words of Osama Bin Laden were: “Hello, have you come about my payment protection insurance?”

The revelation will increase concern that high street banks were so keen to sell payment insurance they even managed to penetrate the 15-foot walls of a heavily armed compound near Islamabad.

The scale of the forced-selling of PPI became clear yesterday when new Lloyds boss, Antonio Horta-Osorio, announced a compensation scheme for “all those customers who are able to discover that we’ve been ****ing them up the ****.”

He also said that, as a symbol of the bank’s new approach, the famous Lloyds ‘black horse’ logo would be replaced by the silhouette of a little monkey stealing jewellery from a blind pensioner.

Critics of the scheme say that many banks sold PPI using sales teams dressed in flak jackets and balaclavas - techniques usually reserved for customers on low incomes.

Other techniques included waterboarding, kidnapping, and forcing customers to watch a whole episode of Channel Five’s ‘Vanessa’ show.

One newspaper even released details of an unnamed man who said that, in return for having payment protection insurance, he had been forced to become leader of the Liberal Democrats.

“It’s no surprise to me that the head of Al Qaeda thought they were coming about his PPI,” said one analyst. “In many ways he should consider himself lucky that he got away with just having a hole blown in his head and all of his sons shot to bits.”

Astonishment continues to greet each revelation over the extent of the mis-selling of payment protection insurance.

“We had no absolutely idea whatsoever that banks might have this slightly malicious, greedy side to them,” said no one.
 

Boozehound

Banned
I'm in the process of claiming mine back and have been advised I have a very good chance as in both my previous and current jobs I would have been unable to claim. If I can't work for whatever reason I get full pay for a minimum of 6 months (dependent on the reason for absence) then half pay for a further 6 months in my job.
 

Knyght_byte

Distinguished Member
If you handled it over the telephone, you could tell porkies and claim you never agreed to it. If they cannot find the call recording, you get the benefit of the doubt and they would have to assume the advisor clicked yes without your permission.

Personally, I always take out PPI on credit cards. When I was unemployed for almost 12 months, the PPI payouts not only covered my card repayments, but one of them paid me 10% of the due balance so I had spending moolah as well :D

Yes, I've paid out more than I could have in respect of paying back the credit+interest....but at least I didnt go bankrupt in those 12 months.....far as I'm concerned, I'm happy with that.
 

JimmyMac

Distinguished Member
Just to bring this one back up, I wonder if I am able to claim?

I've had a loan for some years which has about 18 months left to run, when I was first offered the loan I got the quick speel about PPI and was basically told I should take it, so I agreed. A couple of years ago I was made redundant and was out of work for a few months and so needed to use the insurance on the loan to pay it.

However, I was under the impression that the way it worked was that I sent proof of my redundancy and unemployement and the loan payments would then be covered. I didnt realise that I would have to pay the loan still out of my own money and then claim that money back. It didnt really make sense to me as surely the point about me being unemployed was that I could no longer afford to pay said loan so claiming back after the fact was a bit too late really. In the end I had to borrow money from my family and then pay them back but had that not been available to me I would have basically defaulted on the loan!

So does this sound like something I can claim on or have I just basically been silly and will have to get on with it?
 

Axel40

Banned
Years ago, maybe 10 or slightly less I took out my first CC and that card went high and I remember I signed a PPI but I was unemployed at the time. That's why I needed the card actually as it was a inbetween jobs thing.

Don't ask why I signed, I don't have a clue:laugh: Anyways, would I still be eligible after that amount of time?
 

Phil57

Prominent Member
Just to bring this one back up, I wonder if I am able to claim?

I've had a loan for some years which has about 18 months left to run, when I was first offered the loan I got the quick speel about PPI and was basically told I should take it, so I agreed. A couple of years ago I was made redundant and was out of work for a few months and so needed to use the insurance on the loan to pay it.

However, I was under the impression that the way it worked was that I sent proof of my redundancy and unemployement and the loan payments would then be covered. I didnt realise that I would have to pay the loan still out of my own money and then claim that money back. It didnt really make sense to me as surely the point about me being unemployed was that I could no longer afford to pay said loan so claiming back after the fact was a bit too late really. In the end I had to borrow money from my family and then pay them back but had that not been available to me I would have basically defaulted on the loan!

So does this sound like something I can claim on or have I just basically been silly and will have to get on with it?

I don't think you will be able to claim the PPI premiums back, as it appears that you made a claim against the PPI, or have I misread your post?
I may well be wrong, so it would certainly be a good idea to check.
 
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JimmyMac

Distinguished Member
I don't think you will be able to claim the PPI premiums back, as it appears that you made a claim against the PPI, or have I misread your post?
I may well be wrong, so it would certainly be a good idea to check.

i've seen places say that its not a problem if you have actually claimed on the PPI, you can still make a claim. I'm more wondering if my situation would be classed as possibly having been misoled. I certainly didnt understand the claiming situation, or I was mis informed
 

unique

Moderator
i've seen places say that its not a problem if you have actually claimed on the PPI, you can still make a claim. I'm more wondering if my situation would be classed as possibly having been misoled. I certainly didnt understand the claiming situation, or I was mis informed

Were you mis-sold PPI? Here's how to claim it back | Money | The Guardian

have a read at that. but the you keep paying but have to claim thing is standard. i had to do that once for a short period and never got it again when i found out how it worked
 

Knyght_byte

Distinguished Member
I'm pretty sure you can claim you were mis-sold. a PPI is meant to cover your payments while unemployed and in some cases provide a little extra (but thats when you pay a higher rate on the PPI and not mandatory), it is not meant to be an insurance policy whereby you have to keep doing your thing and eventually they get something back to you. It is there to PROTECT you against problems, as per the second P in PPI. I'd go with a claim that you was sold a product that doesnt conform to the standard procedure for what it was implying it was for. That instead it was a conventional insurance product, and not a PPI. Certainly can't hurt to try and claim. The worst they can do is say no, won't affect you in any other way.
 

loute

Standard Member
Over the last 12 months I have successfully claimed back PPI on a couple of loans I had taken out (including my mortgage).
It's pretty straightforward, and the only one who was reluctant was my mortgage lender. They replied to my letter, saying that they didn't feel they had done anything wrong. I wrote back, thanking them for their response, but stated that I'd have to take it up with the Financial ombudsman. Within a couple of weeks, the bank then admitted liability and transferred the full amount (plus interest) into my account.

I'm sure people will be tempted to hand over their applications to one of those companies who promise to get it back and then take 20%. Don't do it, it only takes 1, or 2 letters max. If anyone wants a copy of the letter I sent then pm me (I'll only want 5% ;)).

Hello, I sent you a mp as I would love to know what to write in order to get my money back as regards to y ppi as well. They refused and adised me to take it to the Financial ombudsman... I know this thread is old..but I would be grateful if you could halp me on that matter. :lease::thumbsup:
 

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