The mis-selling of Payment Protection Insurance
The mis-selling of Payment Protection Insurance or PPI is something which is becoming increasingly common in the United Kingdom. Accordingly the Financial Services Authority (FSA) has put in place strict conditions which must be adhered to prior to the product being sold. An individual being sold Payment Protection Insurance must pay close attention as to whether the supplier is complying with these conditions. If they do not comply with these conditions the Payment Protection Insurance will have been mis-sold.
Furthermore, there are a variety of other factors which will be taken into account to understand whether a policy concerning Payment Protection Insurance has been mis-sold.
Am I eligible to claim for compensation if I have been mis-sold Payment Protection Insurance?
If an individual believes that they have been mis-sold Payment Protection Insurance they will be eligible to claim for compensation.
How will I go about claiming for this compensation?
There are two routes which an individual can take in order to try and claim for compensation due to the mis-selling of Payment Protection Insurance. They are as follows:
An individual can try and handle their compensation claim themselves. However, due to the legal intricacies of the financial services industry this can be a difficult task. If an individual wishes to handle the claim themselves then they should seek help and advice from the Financial Ombudsman
An individual can seek specialist legal advice from a firm of solicitors which has specialist expertise in the field of mis-selling Payment Protection Insurance
Is there any time limit placed upon me in making a claim for the mis-selling of Payment Protection Insurance?
There are strict time limits imposed as to when an individual can bring a claim for the mis-selling of Payment Protection Insurance. In most cases for claims involving the mis-selling of Payment Protection Insurance there is a time limit imposed of six years. The upshot of this is that an individual can only claim in relation to mis-selling of Payment Protection Insurance if the mis-selling occurred within the last six years.
However, in some specific cases where the Payment Protection policy accompanies a secured loan or a mortgage the time limit can potentially be extended to 12 months. This however, will depend upon the individual circumstances of the case and therefore it is wise to seek specialist legal advice if you believe that this may be the case.
Can I still bring a claim for the mis-selling of Payment Protection Insurance even if I have paid back the loan?
It is still possible to bring a claim for the mis-selling of Payment Protection Insurance even if the loan to which the policy relates has been paid back already.
Again the important issue to be aware of is the time period which may have elapses since the Payment Protection Insurance policy was initially taken out. As stated above there is a strict time limit imposed on when claims for compensation can be brought. This means that you can still bring a claim if the alleged mis-selling occurred within the last six years even if you have already paid off the loan to which the insurance policy relates. If the six year period has already passed then you will not be able to claim regardless of whether you have already paid off the loan or not.
How do solicitors work in this area of litigation?
As is often the case in areas concerning personal litigation such as this, solicitors will operate on a no win no fee basis.
Often they will only deal with cases whereby the value of the claim is greater than a certain amount due to the fact that if the value of the claim is less than this amount they may be unable to recover their costs. This amount will often be set around the £500 mark.
It is therefore worthwhile whether a potential solicitor imposes such a condition before deciding to pursue a claim for compensation.
Will I also be eligible for statutory compensation due to the mis-selling of Payment Protection Insurance?
An individual may also be able to claim for statutory compensation which is usually set at 8% of the money refunded. This is to make up for the fact that the individual has not been able to use the money during the time which the Payment Protection Insurance was being paid.