Belmont Thornton Logo
Claim Back Loan Insurance

PPI Refunds

The number of people seeking refunds for mis-sold payment protection insurance looks set to rise once more in the wake of The British Banking Association's decision not to challenge a high court ruling supporting new Financial Service Authority (FSA) regulations. The new regulations aim to protect customers from being mis-sold policies, but will also force banks to look more closely at complaints.

Following the decision, banks including Lloyds and HSBC have announced they will set aside substantial funds to deal with complaints and PPI refunds. This is great news for customers many of whom have had their complaints placed on hold for several months while the court's decision was pending. It also means, for anyone who has yet to register their complaint, there is now no better time to submit a claim.

The amount of people seeking PPI refunds has been steadily climbing since 2005 when a Citizens Advice Bureau complaint highlighted numerous problems within the payment protection industry. Investigations by The Financial Services Authority (FSA) and The Office of Fair Trading (OFT) followed and many lenders were fined.

Two of the major issues that emerged from the investigations concerned staff training and processes. It was found many lenders were encouraging staff to sell PPI cover by offering large bonuses, but were not adequately training them. Incentives and a lack of product knowledge meant many salespeople were recommended the cover to every customer even though it is not suitable for everyone. It was also found many lenders had failed to put in place adequate processes and safety nets to protect customers from mis-selling. It is estimated that tens of thousands of people have been mis-sold policies in this way and many of those are now, as a consequence, demanding PPI refunds.

In many cases customers are actually unaware they may be able to claim PPI refunds until they try and use their policy and discover it has been mis-sold and they are not covered. This happens most frequently where a customer has been sold a policy even though their circumstances make them unsuitable. Some common personal circumstances NOT covered by PPI policies include:

People over the age of 65 - Most policies do not cover people over this age. If you were over the age of 65 when you were sold the policy or have since turned 65 you could make a claim and receive PPI refunds.

People with pre-existing medical conditions - Many PPI policies have exemptions meaning they do not cover pre-existing medical conditions. When you were sold your policy you should have been asked about your health. If you had a pre-existing medical condition and were not asked about it or where, wrongly, told it would be covered, you are entitled to make a claim for PPI refunds.

People who were unemployed, retired or in full time education when they were sold the policy - PPI is essentially designed to cover repayments when a policyholder is unable to work due to sickness, accident or redundancy. If you were not in employment at the time of sale this type of policy would be of no or very limited use to you. If this happened to you, you are urged to claim PPI refunds.

Other common ways in which Payment Protection Insurance was mis-sold include:

  • The policy being added without the customer's knowledge.
  • The customer being led to believe, wrongly, that taking out the policy would improve their chances of being given credit.
  • The terms and conditions or costs not being fully explained to the customer.
  • The customer not being made aware the policy was optional.

If you are unsure whether you could be entitled to make a claim call our customer care team on 0207 471 2000. Remember, there is no limit to how many PPI refunds you can claim and you can register a complaint even if your loan or credit card is already paid off.

Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Loan claim: Building societies warn of house price bubble

The Building Societies Association (BSA) is the latest to warn about the potential house price bubble that could arise f...

Bank claim: Lloyds raised concerns on Co-op finances

Lloyds Banking Group was aware that the financial position of the Co-Operative bank was unstable, said Lloyds chief exec...

Loan claim: first time buyers locked out for a decade

First time buyers will have to save up their deposit on a house for more than ten years, according to research from the ...

Bank charges: Commission tackles issue of RBS

The weak position of the Royal Bank of Scotland (RBS) is damaging to the UK economy, according to the Parliamentary Comm...

Bank charges: Report says customers and taxpayers were failed

Customers and taxpayers have been failed by the financial sector, according to the final report from the Parliamentary C...

Belmont Thornton Limited is regulated by the Financial Conduct Authority in respect of regulated claims management activities; FRN:838450

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide