Which types of people are winning PPI claims with us? And why do they sometimes wait so long before claiming?
Today I will overview surprising elements that we’ve seen in claimant’s circumstances, and the decision making process at work before they made their claim – plus some success stories!
People delay and hesitate in the decision-making process – why?
That statement is – unfortunately – a fact so let’s move quickly to the CAUSES for procrastination. Here’s a Top 8 ‘chart’ of those causes:
- They assume there’s no more PPI to be claimed. MYTH.
- They assume they don’t have any because they asked not to have it; don’t see it documented; and don’t remember anything being mentioned. MYTH.
- They specifically agreed to it. CAN BE A MYTH.
- They assume they can’t get information they don’t have.MYTH.
- They assume the PPI sector is all ‘dodgy’. MYTH.
- They assume the PPI scandal is unfair to banks, and a ‘lucky lottery’. MYTH.
- Their personality or character determines that they procrastinate. TRUE.
- They assume past debt issues exclude them. OFTEN A MYTH.
OK, let’s look at each cause, one by one;
1) They think there’s no more PPI to be claimed.
I tackled this in a previous blog (in January 2017) but very quickly, let’s knock this one on its head.
According to the Professional Financial Claims Association – ONLY AROUND 50% – HALF – of the sums paid out represent ACTUAL REFUNDED PAYMENTS, as of late 2016. PPI in 2017 remains similar.
My earlier blog expands on this but suffice to say, with the Ombudsman upholding 70% of complaints rejected by banks, Point 1 is a MYTH.
2) They assume they don’t have any because they asked not to have it; don’t see it documented; and don’t remember anything being mentioned.
PPI was sold in enormous quantities, millions and millions of it. Possibly, the word ‘sold’ is where misconceptions start. Sold’ suggests an input from you; a presence; a chance for you to say no.
This is where we all have to be clear – it was unbelievably common for PPI to be ‘sold’ without your knowledge, your presence, or your agreement. It could be added during a meeting without your knowledge; or after, by ticking a box; or later, for example when ‘rolling over’ a loan; or in a multitude of different ways.
Employees were ruthlessly driven to cross- and up-sell, and PPI was a stunningly lucrative product through which that could be achieved. Commissions were at stake for the employees, and jobs were sometimes at risk if they didn’t use every trick in the book to add PPI. Point 2 is A MYTH.
3) They specifically agreed to it.
This is still a widely misunderstood item. Simply put, when they bank asked you to take PPI knowing it was unsuitable (for any or all of many reasons), and you agreed – YOU HAVE ALMOST CERTAINLY BEEN MIS-SOLD!
The bank has the responsibility, which it KNEW full well, of being the financial ‘expert’. You do not have that responsibility. It matters not a jot that you agreed, and/or had full knowledge. Point 3 is a MYTH.
4) They assume they can’t get information they don’t have.
OK, it’s madness to assume everyone keeps financial documents from the last 10yrs in a safe in a room in the house.
We know that too.
But the vast majority of the time, the documents can be accessed from the bank or provider. It can be requested by SAR (a Subject Access Request) for a very small fee, usually £10. The risk is in doing nothing, really.
5) They assume the PPI sector is all ‘dodgy’
No, it’s not. However, do your due diligence on the best Claims Management Company (CMC).
I have a blog in January 2017 overviewing this subject, but in short, NEVER pay upfront; NEVER give over bank details unless to pay your success fee; NEVER answer to a text advising you have a specific amount of PPI waiting to be claimed (they don’t know this, they’re lying).
Also, make sure you know if you will be paying your fee IF your win doesn’t go to you but rather goes automatically to a loan balance, etc.
Aside from that, the best CMC’s are very good indeed. Think on this; if it wasn’t for the CMC’s who would have pressured the banks?! Banks loved to give CMC’s a bad name, but this scandal didn’t occur due to CMC’s, did it? No, it was due to the
BANKS! Point 5 is a MYTH.
6) They assume the PPI scandal is unfair to banks, and a ‘lucky lottery’.
I still hear this now. Seriously, I have to sit down each time I hear it. Something along the lines of, ‘my bank always did well by me’.
Let’s keep this simple and factual – a bank is a place that keeps your money safe and earns a little off having your money. That’s how it works. Or it used to be.
Then the bank saw itself as a business. At that point it was no longer a bank. It created and sold dodgy products to fleece you of more of your money. It also invested your – YOUR – money by playing stock markets. It was no longer a bank.
There are horror stories of banks investing your money in tobacco; in the Arms Trade; owning a jet company. Those are all factual, they all happened!
This absolute scandal exists for a reason, and the unclaimed money is YOURS NOT THEIRS. Please don’t be muddled about this Point 6, which is a MYTH.
7) Their personality or character determines that they procrastinate.
Ah, here’s an awkward one. Basically if a person is a procrastinator, well I guess that’s just what they are. And that’s ok. Seriously, what’s wrong with that?
Who’s to judge? Some of the nicest people I’ve ever known are procrastinators.
But procrastinators can get around this by using a ‘hold your breath’ mentality.
Basically, hold your breath and engage a CMC to manage a claim – so that’s a phone call or an email.
Then go back to procrastinating.
When the pack arrives in the post, sit down with a cup of tea and fill it in and post.
Then go back to procrastinating.
And if the CMC needs a SAR they’ll contact you – hold your breath one last time if you need to get one, and send it to the CMC.
Then go back to procrastinating.
And if you get a nice success story, you can procrastinate like a king. Point 7 is TRUE!
8) They assume past debt issues exclude them.
Again, see a previous January 2017 blog in regards to Bankruptcies, but in short it’s very probably of no benefit to you to claim if that Applies to you.
However for ex-IVA and Trust Deed clients it is often very different, which, considering how emotional and stressful that journey will have been, can be great news to go with the relief of completing and putting it behind you.
You can now get back on with being in control of your life. Getting your finances back on track is a liberating experience and part of that is finding out if you can claim back any mis-sold PPI.
As the additional cost of PPI would have contributed to your financial problems, it’s worthwhile checking if you are entitled to a refund.
Claim PPI after IVA
Claiming PPI after completing insolvency is possible. You can make claims both against the debts that were included in your IVA and against debts which were paid in full before it started. This is true even if you completed your IVA some years ago.
There are basic areas that should be looked at such as the Term and Conditions of the previous IVA for example, and possible Offset for another example. But it’s definitely pro-active to simply start the process.
If you are looking to use a Claims Management Company then you will need to find one that has experience in processing claims for people who have been through insolvency.
Question – So, who is winning with us?
Answer – the type of people in points 1)- to 8), above!