As has been reported in the financial and main news media repeatedly, many of the United Kingdom’s large financial institutions involved in providing property loans have now been enmeshed in interest rate fixing allegations on a systemic basis. To resolve this matter, a number of the institutions have, under government orders, established claim processes to address and settle damages to borrowers associated with the payment protection insurance, or PPI claim, matter.

Why PPI Claims are Still Difficult

The above said, the process for submitting a valid PPI claim is not the clearest road to follow. Further, how a PPI claim is prepared and submitted can have a big influence on the results, including whether the claim will be approved and paid as requested. Here is why.

The PPI Claim Process in General

Documentation requirements are the first, critical step to follow in the claim process. Not being aware of which paperwork to include can nullify a claim on a technicality before it ever sees an actual review. This includes evaluating the original loan agreement to determine if PPI was actually included. If not, then the loan would not be eligible on its face for any claim request. However, finding the actual language can be a bit of a chore. It’s often buried in boilerplate language of a loan agreement versus the actual specific terms of the transaction.

When the language is found, and it is determined that there a viable claim basis, each creditor involved has to be addressed and contacted separately. A group notice does not work. Further, the creditors may not be in unison when it comes to a favorable response. One agency might be agreeable while two others may default to a flat out rejection, hoping the matter might be dropped. The claimant has to be prepared for some creditors to be disagreeable from the start. Each contact should also be clear about how much PPI was paid erroneously. That requires detailed calculations based on original payment invoices and receipts. This too can be grounds for creditor to initially disagree, trying to delay the matter further based on the numbers. In both situations, a claimant can likely assume a court filing will be necessary to show he is serious about the claim.

The above response is often attempted when a creditor realizes or thinks a claim is coming from the private party himself versus through a trained advocate. Again, there is a hope that by being difficult, the average person will just go away. This is on purpose and part of the process as the lenders are not really interested in paying back more than they absolutely have to.

The Benefit of an Advocate

First off, many prospective parties are worried about costs, being unable to afford maintaining a lawsuit on their own and assuming that nullifies any legal remedy in a PPI claim. This is a myth and needs to be cleared up. In reality, a party hiring a legal solicitor for PPI claim representation does not need to pay any expenses for the litigation up front. With many solicitor offices, the fees are waived unless the case results in a legal win or a settlement. What is expected is that the party agrees to a percentage share of the recoveries being provided to the solicitor in exchange for taken on the case and pursuing in the name of the party. This is the exchange for helping a claim get their case filed, with the solicitor cash flowing the expenses in the meantime until the case is successfully resolved.

Secondly, the expertise of the solicitor in preparing the claim on the front end will pay off immensely when the claim is submitted. Solicitors trained to pursue PPI claims have a clear idea how a PPI claim package should look, what language is needed in the loan agreement, what documentation is needed for support, and how to nullify early, filtering issues that lenders will try to raise to delay or invalidate a claim. The expertise takes the hot air out of the creditors first line of defense right away, getting to the heart of the matter instead.

Third, the advocacy provided allows a claimant to avoid a lot of stress and frustration chasing down a claim and the various, sometimes acidic, conversations that have to occur. Instead, the claimant can wait, knowing his solicitor is handling the grunt work of the claim instead. Being that four out of five claims on average are going to be held up or delayed by creditors where they find a non-professional is the main contact, it is to a claimant’s own benefit to go into the fight armed the right way from the start. By evening out the playing field with one’s own advocate, the PPI claim process can be far smoother and likely a better result than going it alone.


People don’t go out to the ocean without a life jacket, supplies and knowing how to manage a boat unless they have a skilled captain and crew to do those things for them. Your PPI claim shouldn’t be handled without requisite expertise involved either. The banks and creditors have their lawyers staffed every day of the week to deal with claims, so a claimant should meet that challenge head on with his own solicitor expert as well.

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Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim

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Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.