Martin Lewis PPI – using THIS trick you could be entitled to thousands of pounds

Explaining what PPI actually is, Martin said: “PPI has been the UK’s biggest financial scandal of all time – over twenty thousand million pounds repaid so far, and it wouldn’t be surprising if it hit £30 billion before it ends. Yet it wasn’t done by dodgy blokes in back alley’s, but by bankers in pin stripes -it’s a disgrace.

“PPI stands for ‘payment protection insurance’ an insurance policy sold to cover a year’s repayments on debts in case of accident, sickness or unemployment, and the concept is a decent one.

“Yet for years banks saw it as a cash cow, and pushed their sales, systematically mis-selling this insurance – which often made them more profit than the loan itself.  

“It was given to people who didn’t need it, couldn’t use it, they lied about the fact it was compulsory and it was even added to some people’s loans after they’d said no to it. Reclaiming means you get back all the money you wrongly paid it.”

The deadline for claiming if you have been mis-sold PPI has changed, and Martin explained: “Last Thursday the regulator, the FCA said the last day you will be able to put in a claim for PPI mis-selling is 29 August 2019.

“While that sounds a long time away, the key point is that the FCA will soon spend millions promoting it, so the system is likely to get clogged up, therefore go quickly to avoid being stuck at the back of the queue.

“So everyone who’s got or has ever had a loan, credit or store card where it was systemically mis-sold, but also mortgages, catalogue or overdrafts should be checking now if they had PPI.

“This deadline is something I’ve objected to – I don’t think it’s in consumers interest, nor do other consumer groups, yet it is happening. The original suggestion came from the big banks as they wanted to protect their balance sheets.”

Explaining what counts as mis-selling, Martin said: “Typical examples include they lied that PPI was compulsory or it’d cut your loan costs; sometimes it was added without asking, or even after you’d said no.

“They had a duty to ensure it was suitable for you. For example, you were self-employed but got unemployment cover or you had a past medical condition they didn’t ask about.”

However, there is now a change which means millions more people many now have been mis-sold.

Martin explained: “In the deadline ruling, the regulator also clarified info on a recent court ruling called ‘Plevin’. It says that if your PPI was made up of more than 50 per cent commission and you weren’t told it then you are due the extra back plus interest.

“As the average commission was 67 per cent and banks almost never mentioned it, this pretty much means almost everyone who had PPI is likely to be due something back. This new rule comes into force on 29 August this year

“So much so lenders will be forced to write to 1.2 million people who were previously rejected and may now be owed due to Plevin. Though ridiculously it’s not ordered them to send these letters to everyone whose commission was over 50 per cent – only those who’ve already complained – so you’ll need to do it yourself.”

If you aren’t sure whether you’ve had PPI, Martin explained how to look: “Don’t assume you didn’t. One way it was mis-sold was to add it without asking, or even adding it after you’d said no.

• Check your old loans paperwork: It may have been called PPI or like “payment insurance” or “accident or sickness” insurance”.
  If you don’t have your paperwork, you can request it from your lender going back up to six years

• What if I can’t remember my lender? Check your credit report from Experian, Equifax and Call Credit (now possible to get free online) which shows all lending active within the last six years

• What if I haven’t got paperwork? If you haven’t got your paperwork you can ask the lender for it (going back six years). If it refuses you can force it to give it to you under the data protection act

• How far back can you go? There’s no rule on how far back you can go. Yet if you can’t get the paperwork for old PPI there’s little you can do

Explaining how to reclaim, Martin said: “You do NOT have to use a claims management company to do this. You can do it easily yourself using free template letters and online tools or even just calling your bank.

“If the bank rejects you, and you feel you were mis-sold then don’t give up. You’ve a right to go to the free Financial Ombudsman service within six months – it will adjudicate independently.  Over 50 per cent of people who get rejected by their bank get ruled in favour by the Ombudsman – that’s where real justice often lies.”

And if you were rejected before, there are things you could do, as Martin revealed: “If you’ve claimed over six months ago, you may be able to restart your complaint with the Bank.

“But you’ll need a good reason to restart it, though Plevin is one. So try again using that. If you need help you can call the Ombudsman on 03001239123 and it’ll help you.”

For more information, click here.