This is a simple tick list to help you quickly understand and decide on making your claim.
What ‘Business PPI’ is.
- In principle very similar to PPI – an insurance product, but for businesses not people.
- It’s not often called ‘Business PPI’. The actual names used, differ from bank to bank, ie Lloyds and HSBC could call Business PPI two entirely different things.
- Common names include PPI, Business PPI, Commercial PPI, Business Loan Repayment Insurance (BLRI), & Commercial Overdraft Repayment Insurance (CORI).
- Business PPI was sold on loans, overdrafts, mortgages and credit cards, but most often on loans and overdrafts.
Understanding the Financial differences of Business PPI.
If you had a successful claim, you could be entitled to compensation in the following:
- Full refund of ALL premiums paid.
- Full refund of any interest charged (bear in mind how many years that could be).
- An 8% award spread across both of those items above, across all years.
- Consequential losses could include any extra payments made by the business & loss of business opportunities.
Due to the obvious difference in financial nature between ‘normal’ and ‘Business’ PPI, it is likely that compensation sums can be significantly higher, due to the business transactions undertaken.
There are claims in this sector that are very high indeed.
The actual definition of ‘Business’, for these claims.
For these claims, a Business is defined as a commercial operation, such as;
- A business trading as a Limited/Ltd Company (registered at Companies House)
- A sole proprietor or sole trader
Commercial operations are distinguished from individual persons or consumers.
Why that definition is so important.
Disclosure of information has important differences between businesses & consumers.
- For consumers, aside from asking the bank to check for PPI, they can submit a Subject Access Request (SAR). The bank has a statutory obligation to provide one if requested. That SAR gives lots of information including about PPI.
- The obligation described above applies only to sole proprietors & partnerships of under 4 people – many can’t then tell if the Business had a PPI policy via SAR.
- Some banks give a ‘Request For Information’ (RFI) but it’s not a statutory obligation.
- Info from the bank via RFI (if any is given) tends to vary significantly between banks.
The differences don’t stop there.
- Consumers disagreeing with their bank can take the complaint to FOS (Financial Ombudsman Service) within 6months of a Final Response Letter. Businesses have same rights regarding complaining to the bank, but FOS has set criteria for this.
- A business with 10 or more full-time employees & a turnover of around £1.7 million or greater in the year of making the complaint, will not be eligible.
- Courts are an option but have practicalities, costs and risks involved in litigation.
There are also aspects to be taken into account in regards to the status of the business and our team can help on these too, feel free to all Rachel on 01572 498601 TODAY.
Worried about how your bank will behave, if you claim?
These worries include possible impact on their general banking relationship. You could be nervous about an overdraft being withdrawn, full repayment of a loan being demanded, or a line of credit being stopped, and may tend to feel valid but unfounded for following reasons:
- Complaints are typically handled/investigated by another bank division entirely.
- The bank must treat their customers fairly and in best interests, it’s an obligation, and any breach would be a serious breach of banking industry regulations
- Banks have set aside set monetary provision to compensate for previous mis-selling.
And if you’re ready to make a Business PPI Claim?
The Financial Conduct Authority (FCA) has announced a deadline for making a PPI complaint.
- The deadline set of the 29 August 2019applies to both businesses as well as individuals.
- Certain other time limitations for claiming may apply. These are typically either six years from the date that the financial product was sold or three years from the date of knowledge of a cause to complain.
Our team can help you progress, feel free to call Rachel on 01572 498601 TODAY.