Frequently Asked Questions

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What is PPI?

PPI (Payment Protection Insurance) was intended to cover credit repayments, such as loans, credit cards and even mortgages, if you were unable to work due to illness or redundancy. The promise was that if you lost your job, fell ill, or unexpectedly ended up in a situation which meant you were not earning money any more, the insurance would cover your repayments.

PPI was also called Accident, Sickness and Unemployment cover (ASU), Life & Accident, Sickness and Unemployment cover (Life & ASU), Mortgage Payment Protection Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment Protection (CCRP). These policies were often sold alongside credit cards, loans and mortgages.

What can I claim PPI on?

You can claim on PPI. This type of policy is usually paid for in full and upfront to the insurance company at the beginning of the policy. Most loan companies will finance the full cost of the policy by adding the cost onto your loan. Normally, you will also be paying interest on that amount at the loan interest rate for the full term of the loan.

You can also claim on the monthly PPI premiums that have been added to your credit card, loan, store card, mortgage, secure loan or car finance.

Have I been Mis-Sold PPI?

Many PPI claims are rejected due to exclusions that may not have been fully explained to you at the time of purchase. Many people who have current medical conditions will be excluded from cover. Self employed, short term contracts and people of certain age limits will also not be covered under many policies. In these circumstances these policies should not have been sold as the insurance is inappropriate to the borrowers’ wants and needs.

Some policies are so full of exceptions or exclusions that borrowers are often unable to make a claim if the worst does happen. Many policies sold to protect the lender simply won’t perform when asked to at point of claim and in not doing so just makes large profits for the providers, leaving vulnerable borrowers without protection and further in debt having paid out for expensive PPI premiums.

What compensation will I receive?

Our goal is to return to you money that is rightfully yours. A successful claim will typically result in the recovery of the PPI premium that has been added to your loan, PLUS the interest, PLUS in some cases statutory interest. All claims are different and therefor can result in different outcomes.

Can I still claim if I no longer have the PPI policy?

Yes, even if the policy is no longer in place, and the loan or credit card has been repaid, if you want to query you were mis-sold, we can help find out if you should make a claim. You might have had a loan and then consolidated this loan or other borrowings into a single new loan. You can make a claim on all the old loans not just the current loan.

Can I see an example of a PPI offer?

Loan amount: £28,000
PPI Premium: £5360
Interest Rate: 7.55%APR
Loan term: 180 months
Number of monthly payments made: 72
PPI Interest paid to date: £3588
This claim would typically result in a refund of £3,588 + 8% statutory interest of £946*+ the remaining

PPI removed from the loan saving £5,382 in further payments.

Total claim:£9,916

*Claim amount is before fees are deducted.

Read more

Why should I claim?

The Financial Services Authority (now the Financial Conduct Authority) found that PPI was frequently mis-sold by lenders throughout the UK. By the middle of 2008, 20 million PPI policies existed in the UK and an estimated 7 million were being added to credit agreements every year.

This suggests that over 70% of the UK could have been mis-sold a PPI policy at some point in time. It has been reported that as much as 40% of policyholders did not know that the insurance had been attached to their loan, credit card or mortgage. Figures from the Financial Ombudsman Service (FOS) for April to June 2013, show that in almost 8 out of 10 cases that had been referred to them the lender had wrongfully rejected a PPI claim.

If you were one of the millions of UK consumers who took out some form of credit in the last 20 years or so (the earliest recorded case was 1992), you may well have been mis-sold a PPI policy – and in some cases you may not even be aware of it! Maple are experts at finding out if you were.

Why was PPI missold?

In the 1990’s sales staff at high street banks and financial companies started to be strongly incentivised to sell the hugely profitable PPI whenever possible. Many were under so much pressure to attain ‘points’ and hit daily targets that they lost sight of the regulations governing the way these products should be sold. By January 2005, after significant press coverage, the Financial Services Authority (FSA) stepped in to start regulating the sale of PPI.

There were many ways PPI was routinely mis-sold to customers, but the four most common reasons we have found are:

1) The bank said you had to have it. Sometimes banks/lenders told customers that the policy was necessary or they wouldn’t get the loan. Sometimes they just didn’t tell customers it was optional, and sometimes they said something like, ‘Head office won’t like it, you’re more likely to get the loan with it’. All of this was nonsense, and if this was your experience then your policy was undoubtedly mis-sold.

2) It just appeared on loan documents without customers asking for it. Often it was added sneakily without being properly discussed. You might even have it without knowing! Luckily we are experts at finding so called ‘hidden PPI’.

3) It was unsuitable in some way. It might have been unsuitable in one of three ways:
i) Unsuitable for you. These policies rarely adequately cover the self-employed, part-time or contract worker. If you were not in employment at all or if you had a prior medical condition you thought you were covered for, or if you would have reached retirement age whilst the policy was active, it is likely to have been unsuitable and was mis-sold.
ii) Unsuitable for the duration or holders. Most policies cover you for five years, yet sometimes the credit agreement is for longer. If that was the case, the policy was unsuitable and was mis- sold. Sometimes the policy only covered one person even though the credit agreement was in joint names.
iii) Unsuitable for the credit purpose. If you borrowed the money as a consolidation loan, (one taken out to pay off other loans or credit-cards) and you were sold a single-premium policy (a single payment added to the loan amount) then it is highly likely to have been mis-sold. These policies are so inflexible that you end up seriously out-of- pocket if you extend or re-consolidate the loan later on – so they’re not suitable.

4) It was really, really expensive. Some policies on credit agreements are so expensive that you would barely get your money back if you were to claim on it, even if you were ill or unemployed for the maximum amount of time possible. Some policies on credit-cards are so poor that they only pay enough off each month to cover the PPI itself! In either case the policy could never truly benefit you, so it was mis-sold.

How can I spot PPI payments?

If you had PPI on a credit card it should be clear from your statements. It was typically charged monthly and should be itemised.

If you had PPI on a loan or mortgage it is likely to be on your original agreement.

PPI may have been called Accident, Sickness and Unemployment cover (ASU), Mortgage Payment Protection Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment Protection (CCRP).

If you are unsure, give a quick call to one of our experts on 01572 498601 and they can tell you what your lender might have called it and which paperwork to find it on.

If you don’t have any of your original paperwork or statements, don’t worry, we are often able to obtain them by submitting a ‘Subject Access Request’* to your lender on your behalf. Just give us a call and we’ll explain everything in plain English.

*Your Lender may charge a £10 fee for this

Are there alternatives for PPI?

Yes there are a number of alternatives available to you depending on your personal circumstances and the purpose for which its required. We would strongly suggest you take advice from an Independent Financial Adviser who is regulated by the Financial Conduct Authority (FCA).

How long it will take?

Once we have sent our letter of complaint it will typically take your lender around 8-12 weeks to investigate your claim and reach a decision. However if we need to raise an appeal with the Ombudsman it can add many months to the process, although you should note that a majority of PPI cases referred to the Ombudsman are awarded in the consumer’s favour.

Please note that if you do not know who your lenders were or what the policy numbers are it can take up to 12 weeks to track these down before we can assess your eligibility to claim and make our complaint.

How far back can you claim?

PPI has been mis-sold since the 1990’s and despite coming under Financial Services Regulation in January 2005 it continued to be mis-sold until around 2010. There is no limit on how far back you can claim.

How do I know if I’ve had PPI?

PPI on your statements or credit agreements may have been called Accident, Sickness and Unemployment cover (ASU), Mortgage Payment Protection Insurance (MPPI), Personal Loan Protection (PLP) or Credit Card Repayment Protection (CCRP).

If you are unsure, give a quick call to one of our experts on 01572 498601 and they can tell you what your lender might have called it and which paperwork to find it on.

How much will I get back?

The method used to calculate compensation can be very complex, but it usually consists of a refund of the PPI premiums you have paid, plus interest at 8% (gross). Further compensation may be awarded if you have paid additional interest on your loan, credit card, mortgage or overdraft as a result of the PPI.

Why shouldn’t I just make a claim myself?

We realised right from the beginning that people deserved to have the right to appoint an expert to deal with their claim. Of course you could do it yourself, but who wants to spend their weekends trawling through paperwork, writing long letters to their bank, filling out questionnaires and so on? Furthermore, who really has time for that? And who wants to trust the same organisations that mis-sold in the first place?

We also understood that people wanted a company that would do everything for them. That’s why we put together a team of real experts (and more importantly real people) who will manage the entire process, from filling out all the paperwork for you and even searching through years’ worth of records to track down hidden PPI through to ensuring that the compensation you are offered is appropriate and fair.

However, if you do wish to do all the work yourself the Financial Ombudsman Service (FOS) offers a free and impartial advice service for consumers.

What happens if I’ve missed repayments?

If you have missed any payments on the loan, credit card or mortgage which you are claiming for, your lender may use any compensation awarded to clear the arrears first before they make any payment to you. We would also recommend that you speak to a specialist debt advisor about your financial situation.

Will I have to find money from my own pocket to pay your fee? NO – We are committed to ensuring that our customers always benefit from making a successful claim with us and never end up in a worse financial position.

If the amount of our invoice is more than the amount of compensation left over after the debt management company has been paid, we will cap our fee and reduce the invoice so that you do not need to find money from elsewhere to pay our bill. Although this means you would not be left with any cash, you will still have benefited by reducing your outstanding debt.

I have an IVA or have been declared bankrupt, can I still claim?

If you have finished an IVA or Trust Deed and you have your completion certificate, then yes we can help you. If you have been declared bankrupt, we unfortunately cannot help you as any PPI refund will be sent to your Trustee or the Official Receiver.

I’ve already started a claim myself, can you take it on?

Yes, so long as you have not yet taken your case to the Financial Ombudsman Service and you contact us within six months of receiving a rejection letter from your lender we may be able to help. Please be aware that if we are successful in appealing your claim our full fee will be payable on any compensation awarded.

What if I have no paperwork?

No problem. If you let us know who your lenders were, we can issue a Subject Access Request* instructing your lenders to send us the information we need to assess your claim (Your lender may charge a £10 fee to provide this information).. Financial companies must keep records of all their customer’s transactions and dealings for the past 6 years.

If your credit was paid-off more than 6 years ago your lender might not have any records to send us. Having said that we have made successful claims on loans taken out as long as 20 years ago. If you’re still paying off an old agreement or paid it off within the last 6 years, we stand a good chance of obtaining the information we need to be able to make a claim.

*Your Lender may charge a £10 fee for this

What if I can’t remember who my lenders were?

We recommend using the UK’s most trusted credit reference agency, Experian. They are currently offering a 30 day trial of their CreditExpert credit report*. This report often reveals past lenders you have since completely forgotten about!

*A monthly fee of £14.99 applies after your 30-day trial. If you choose to cancel during your trial, you will not be charged.

Can I still make a claim even if the policy has expired?

Yes, even if you cancelled the policy or simply finished paying back the credit, you can still claim if the policy was mis-sold to you.

Can I complain even if I’ve actually claimed on the policy?

Even if your PPI policy has paid out in the past because you were unable to work due to sickness, accident, etc. it may still have been mis-sold and so potentially you can still make a claim. You should be aware, however, that any compensation may be reduced by the value of any claims already paid, and that this may mean nothing further is payable to you.

How will this affect my relationship with the lender?

Your relationship with the lender should not be affected in any way. It is the duty of the lender under the Financial Conduct Authority’s “Treating Customers Fairly” (TCF) initiative alongside the Banking Code to ensure all customers receive fair treatment irrespective of any complaints they may have made.

The FCA takes a very serious view on this subject stating, “TCF remains a vital part of our supervisory approach and as such, it has been fully integrated into our core supervisory work. This will help to safeguard the legacy of the significant effort made by the FCA and by firms on their TCF programmes, in terms of improved outcomes for consumers.

Where we find failings, we will use our full range of regulatory powers to take action.

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Contact Info

Address: 4 Sadlers Court
Oakham, Rutland LE15 7GH

Email: rachel@maplefinancial.co.uk

Telephone: 01572 498 601

Company Reg. Nr: SC123254