Reply to: Reclaiming PPI

[MarillionFan]

Something interesting about reclaiming PPI is that due to the court ruling earlier this year to stop the courts being flooded with PPI reclaims, the standard compensation includes 8% interest on the PPI amount refunded.

So those paying PPI and reclaiming turn out to be quite astute investors. Especially if you really can reclaim the PPI after having claimed on it.

BBC News - Taxman to make money from Payment Protection Insurance

Yeah, but you got to pay tax on the interest.

[doodab]

Right, I've had a look into it, downloaded the form etc.

I have no intention of using an agent to do it, they are all sharks so I will do it myself.

These are old policies related to credit cards, I did cancel the various insurances some time ago so it's possible I won't be able to locate or obtain a copy of the relevant paperwork for the PPI. On the other hand it's quite likely that I will have it as I have every bill going back to the very first, and as I still have all the cards I suspect the paperwork might still be available from the companies concerned.

[PAH]

But to answer the OP, I think claims have to be lodged within 6 years.

According to MSE you can still lodge a claim if the loan ended over 6 years ago but chances of success are reduced and you must have the paperwork as proof of the terms and how it was mis-sold.

I think the 6 year limit is what companies are forced to retain paperwork for, so if you can't find your copy of the loan agreement and PPI terms you can request a copy from the lender.

If they can't supply a copy (and some can't due to cock-ups in system upgrades or company mergers after scanning in the documents, oops the IT permies have cocked up ) they're immediately on the back foot. *

Over 6 years without paperwork the lender can deny any claims as there's not going to be much evidence and they aren't required to keep any.

* This method of requesting paperwork and it not being available is also used to try to get out of paying back a loan as the company can't prove you agreed to the loan, despite maybe still paying them instalments () so there are cases (probably rare) where the loan company has lost in court for not keeping the paperwork as required by law.

[centurian]

Something interesting about reclaiming PPI is that due to the court ruling earlier this year to stop the courts being flooded with PPI reclaims, the standard compensation includes 8% interest on the PPI amount refunded.

So those paying PPI and reclaiming turn out to be quite astute investors. Especially if you really can reclaim the PPI after having claimed on it.

And yet they then whine bitterly about having to pay tax on that 8%.

BBC News - Taxman to make money from Payment Protection Insurance

But to answer the OP, I think claims have to be lodged within 6 years.

[PAH]

But typically, everybody and their dog who ever took out PPI knowingly also started claiming refunds.

They would be mad not to give it a go. Only costs a bit of time filling in a form and a stamp to send it off.

Due to the massive numbers reclaiming it means many will get paid out when they wouldn't have otherwise, as banks have set aside billions and are fast-tracking the process so it costs them less in admin.

The banks then get bailed out, then the country get's bailed out, then those with savings from the PPI get bailed out.

It's all free money.

[PAH]

Something interesting about reclaiming PPI is that due to the court ruling earlier this year to stop the courts being flooded with PPI reclaims, the standard compensation includes 8% interest on the PPI amount refunded.

So those paying PPI and reclaiming turn out to be quite astute investors. Especially if you really can reclaim the PPI after having claimed on it.

[fullyautomatix]

As usual there were some really valid cliams for a refund of PPI since this was tacked on to a loan without agreement of the loanee. The idea being that since the loan was unsecured and a bit risky the PPI would serve as insurance for the company giving out the loan. All very dodgy.

But typically, everybody and their dog who ever took out PPI knowingly also started claiming refunds. Lloyds was first to completly refund about 3 billion. Its owned by the tax payer anyway, so no need to make profits.

[MarillionFan]

Lady who owns the neighbouring office claimed back £5000 for PPI which was automatically added on a loan. As she was self-employed she could never make a claim - there was a clause in the PPI about this. She went through a management company who took something like 25%+VAT of the total amount.

So if you can get it back yourself you'll be much happier.

Interestingly I once interviewed for a PPI company and I often wondered how the heck they made any money. They were making loads as the car park was full of Porches. Now I know how they were doing it.

Where did they park their cars then?

[PAH]

She went through a management company who took something like 25%+VAT of the total amount.

Oh yes, forgot about them charging VAT on top rather than including it in the percentage.

I'm sure there are loads of individuals who are VAT exempt so the real figure isn't 30%.

Some also charge that percentage on the amount of loan saved by the bank restructuring the outstanding loan to remove the PPI. e.g. if the loan without PPI works out at several grand less for the remainder of the loan they want 30% of those several grand.

They make recruitment agents look like amateurs when it comes to taking the piss.

[lilelvis2000]

Lady who owns the neighbouring office claimed back £5000 for PPI which was automatically added on a loan. As she was self-employed she could never make a claim - there was a clause in the PPI about this. She went through a management company who took something like 25%+VAT of the total amount.

So if you can get it back yourself you'll be much happier.

Interestingly I once interviewed for a PPI company and I often wondered how the heck they made any money. They were making loads as the car park was full of Porches. Now I know how they were doing it.

[v8gaz]

I find it staggering that anyone was ever stupid enough to agree to pay for PPI in the first place.

Agreed. What kind of permie losers hang out here nowadays?

[MarillionFan]

I find it staggering that anyone was ever stupid enough to agree to pay for PPI in the first place.

WHS

[PAH]

I find it staggering that anyone was ever stupid enough to agree to pay for PPI in the first place.

Depends on your circumstances. I agree if you can cope without it, as IIRC the PPI fee is a significant part of the loan, something like 20% of the payments, which explains why my mum is getting such a big lump back.

For the situation it was intended for, before the mis-selling, helping normal working folk pay their debt if out of work for a long time it seems useful.

e.g. My dad has been off work long term ill since 2009 after being hospitalised and still recovering. Probably will never be fit enough to go back to work and will be retirement age in a couple of years anyway.

As he is/was self-employed he'd have been in a mess without PPI as he had several credit card debts. Fortunately the PPI has paid most of it off. If they hadn't he'd have claimed the PPI back for being mis-sold to the self-employed.

One claims management company that cold called him said he could still claim it back despite having made a successful claim on it. That's when I looked into what shysters these claims management companies are.

[Alf W]

I find it staggering that anyone was ever stupid enough to agree to pay for PPI in the first place.

[PAH]

Not personally as I've not had a loan with PPI in the last 10 years or so.

My mum has successfully reclaimed it on a loan she had, though still waiting for the bank to make the payment.

The loan went beyond her retirement age and there is a clause in the PPI terms that it's not valid if retired, so she claimed it back as they were charging her for an insurance she could no longer make a claim on.

Funny thing is they're also paying back the PPI for a couple of loans before her current one (I assume because she settled the outstanding old loan with the new one so they're all linked), for which I can't see how the PPI was mis-sold. She's not going to complain though, the full amount being refunded is almost 10k!

So well worth doing if you think you may have a chance. Though do not go through a claim management company, they charge around 25-30% of the reclaimed amount. Thieving parasites. They even have the cheek to offer to reclaim excessive bank fees when they're charging excessive fees themselves. So just like those solicitors milking the miners for their compensation over various injuries/illnesses being paid out by the government, this bunch of scum are doing the same. Evil ***** the lot of them.

It's a piece of piss to do yourself (there's a form on MSE or similar places) and only costs a stamp.