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What is PPI?
Payment protection insurance (PPI), also known as
Credit protection insurance, or loan repayment insurance, is insurance that enables consumers to ensure repayment of credit if the borrower dies, becomes ill, loses a job, or faces other circumstances that may avert them from earning income to service the debt.
It is often sold when you take out a loan or credit card. It is supposed to protect you against the risk of being unable to meet repayments in critical events like accidents, sickness or unemployment.
The PPI claims usually cover payments for a finite period, generally 12 months, which might be marketed as short-term income protection insurance (STIP).
For loans or contracts, this may be the entire monthly payment, for credit cards it is typically the minimum monthly payment. After this span of time, the borrower must find another way to repay the debt. Although some companies have the policy to repay the debt in full if they are unable to return to work or are diagnosed with a censorious illness.
PPI Deadline has passed now!
You are possibly aware that there is now a deadline for making PPI claims. The deadline is declared to be 29th August 2019. While this is still over years away, starting at the earliest is advised as the banks are busier than ever. Lloyds bank reported an increase of 9,000 to 11,000 claims a week. The PPI claims can take up to six months to be resolved, so the sooner you start, the sooner you will be able to receive your money.
In January 2020, the Financial Conduct Authority announced that since 2011, over £30 billion has been repaid to customers for mis-sold PPI. Even if you were earlier unsuccessful with a PPI claim, it is possible to claim again. This is due to the Plevin ruling. If over 50% of your PPI sale was a commission, this is a form of mis-selling. Making another claim could be beneficial.
Things you need to know
Successful PPI claims companies develop great reputations and influence. As a result, they have a high caseload. To cope with this workload, claims companies utilize PPI claims management software. These specialized software-oriented business processes, ensure companies can manage their claims workload. PPI claims software prompts clients to return completed forms. The best software packages, such as LogiClaim and six ware, are fully automated, send out chasers, and track claims status. It also follows banks for letters of acknowledgment. With an experienced team of developers at the helm, LogiClaim is the best company for providing instinctive, user-friendly, effective PPI claims software.
How to know if I’ve had PPI or not
You might have had PPI if you’ve drawn out a loan or bought something on credit – for example an overdraft, credit card or contract. You might also have had it if you’ve paid for something in installments, for home appliances, furniture or vehicle.
Look into any paperwork that you have of the appliances, furniture, or vehicle you bought in installments. Check if they use terms like:
credit insurance or protection, loan insurance, care or protection, protection plan, account cover, payment cover, MPPI or mortgage payment protection insurance, ASU or accident, sickness, and unemployment insurance.
If you’re still not sure whether you’ve had PPI, you can ask the company you got the loan or credit from and find out how to contact your PPI company on the Financial Conduct Authority (FCA) website.
5 Best PPI Companies in the UK
Deciding which PPI company to opt for is an important choice. One must spend some time researching the options available before making a decision. There are many forums dedicated to this particular subject area. A simple online search can reveal client feedback and insights into their reputation. Mostly, Good companies don’t charge an upfront fee. They work on a No Win, No Fee basis ( However, some might charge a cancellation fee after the initial 14-day cooling-off period. So it’s important to check the terms and conditions before proceeding) if you don’t get a financial benefit by making a PPI claim, neither do they. Which is a great indicator of success.
Below, we have listed the best and most well-known PPI claim companies in the UK. These companies will deal with your claim rapidly, efficiently, and stress-free. They are also taking advantage of the modern PPI Claims Management software to deal with their significant workload smoothly.
1. Gladstone Brooke :
Gladstone Brookes’ noticeable TV adverts have made it a popular choice with customers. It is the best PPI claim company. This Cheshire-based company has been operating the claims since 2007. With more than a decade of experience, it has helped claim over £1 billion for its customers. Its phone line services are open every day, except Sunday, making this company easy to contact and connect with regarding a claim. Similar to many other PPI claims companies, Gladstone Brookes operates a lose-to-lose policy and charges the maximum fee of 20%+ VAT.
2. The Claim Guys :
The Claims Guys are one of the best tax refund companies. It operates from Altrincham and is among the most reputable claims management firms in the UK. In total, it has around 500 advisors that help customers to get their PPI money back. The Claims Guys PPI tax refund company has won more than £440 million for its customers since 2009, the largest of which was for £51,000. They handle around 25,000 claims a week and do not have upfront fees, instead, operating on a no-win, no-fee basis.
3. PPI Team :
The PPI Team is a PPI claims company that is a specialist in handling mis-sold PPI. The company has more than 15 years of experience in the finance and claims sector, and with no upfront fees, they aim to make the entire claiming process easy and efficient for their customers. It starts with a call to discuss a claim and then if a customer agrees to go ahead, they just fill out a simple form. The PPI Team then does the rest and keeps trying until they get their customers their money back. This claims management company provides customers with access to the live progress of their claim, through an in-house web portal, so they know exactly where they stand at all times.
4. Have I got PPI :
Have I Got PPI is a well-established and trusted PPI claims company? It operates on a ‘refer a friend scheme, which works by offering a £50 payout to each person who refers a friend who goes on to make a successful claim. The claims company has so far recovered £150 million in compensation for its customers. The company name is recognizable to many consumers due to its TV and radio advertisements across the UK. Have I Got PPI part of the larger Stanton Fisher claims specialist group? Besides, the group also deals with flight delay claims and mis-sold packaged bank accounts.
5. We fight any claim :
We Fight Any Claim is very popular among many customers, as its advertising campaign features John Cleese. This South Wales-based company has helped 170,000 consumers claim back over £400 million. It provides a free PPI check to uncover PPI on any previous accounts. If PPI is discovered, consumers can choose to use its services or even claim their own. We Fight Any Claim was one of many PPI claim companies that had to cut its fees after the imposed fee cap, as it previously charged more than 35% on successful claims.
FAQs
What is Mis-sold PPI?
In multiple cases, PPI policies have been sold in situations where the individuals to whom they were sold would not have been able to benefit from the policy. Where, for example, they were too old to qualify or already insured, where the policy was not properly explained on sale, or where they did not realize they were buying PPI.
Payment protection insurance mis-selling comes in various forms and common complaints that the company deals with include:
- Insurance was added onto an existing deal without the knowledge of the customer.
- Insurance cover which does not meet a client’s needs and requirements. For example, a single cover when a joint policy was essential.
- One was not informed that the policy excludes existing medical conditions, which means that you are unlikely to be covered for medical problems that you’ve had in the past.
- Payment protection insurance is sold without even one’s knowledge. In some cases, you may not even know you were buying a PPI policy.
- Payment protection insurance (PPI) was sold to many customers alongside loans, credit cards and contracts, but in many cases, this cover was unbefitting for circumstances.
If my PPI claims have been rejected. What can I do?
If your claim is rejected by the bank, it’s not the end of your case. If you wish, you can send your claim to the Financial Ombudsman. It can unconventionally review your case and decide if the bank was wrong. If it upholds your claim, the bank will have to pay out. A huge number of PPI claims are being referred to the Ombudsman, meaning a case can take up to two years to be resolved. However, if you believe you have a strong case, referring to the case is something one must consider.
What are undeclared PPI commissions?
The average commission made by banks for selling PPI policies on behalf of insurance companies was a staggering 67%. Therefore, some changes were made. On average, only 33% of what consumers were paying towards the PPI policy was for the policy itself, the rest was commission and clear profit for the bank.
