MSE News: Majority of customers yet to claim for mis-sold PPI - here's what you need

Former_MSE_Megan_F

The majority of customers haven't claimed for mis-sold PPI and now have just two years to claim their cash – and from today banks MUST consider a new rule which means millions more could be in line for payouts just for simply having had a policy...

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'Majority of customers yet to claim for mis-sold PPI - here's what you need to know'

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dunstonh

Staggeringly, with loan PPI, on average, 67% of what you paid was pocketed by banks as commission from insurers, and banks almost never mentioned it – so millions more people are owed possibly billions more pounds. If you bought a standalone PPI policy, from a broker for example, it's unlikely as much commission was paid out – and you won't be eligible, but do check.

Single premium PPI is the big commission payer. Regular premium PPi is much lower. MPPI is typically around 25-35%. So, brokers/advisers need not worry. We have only seen one credit card PPI ruling on plevin on the forums and that was under 50%.

[Deleted User]

MSE_Megan_F wrote: »

a new rule which means millions more could be in line for payouts just for simply having had a policy

There needs to be clarity here, not sensationalism.

Caddyman

I and my former wife had several loans in the late 1980's and they were all repaid. However, I know for a fact and I remember distinctly and I also still have, believe it or not, paperwork relating to those loans, that when we applied for those loans, there were specific opt outs relating to PPI. We never once took PPI as an option. We never accepted PPI as part of the deal and it was never subsequently 'added'. So were we just lucky? Or were we just financially savvy enough at the time to understand that opting for PPI just added a load of extra cost to the loan and we didn't need it?

At the end of the day, opting for PPI is a gamble on whether you're going to be in a position throughout the term of the loan, to continue to afford payments. I guess though, it has proved easy for some people to be 'swayed' into making a decision by some unscrupulous commission grabbing financial 'expert' or loan 'advisor', or they've actually thought about their own financial or employment situation and subsequently made a rational decision....maybe.

You could argue that Guaranteed Asset Protection (GAP) insurance offered at the time on both used and new car purchases, falls into the same sort of category. I've bought several new cars over the years and been subjected to some rather 'hard sell' tactics concerning GAP insurance which has led to blatent rudeness and shouting by me at the salesperson when I've told them flatly NO! I've seen all sorts of tricks employed to flog that particular type of insurance, but it's not something I'd personally 'fall for'. What makes me laugh about that particular type of insurance, is that I've had car sales persons tell me to their face, that they must offer GAP insurance to satisfy FSA rules and that we've received 'advice' accordingly and to sign paperwork stating that we have 'Opted out' of taking a 'recommended' financial product. Really?!!!!

At the end of the day, unless one has been brazenly and illegally subjected to having PPI installed into a loan against their agreement, people sit down and make decisions at the time of taking out the loan appropriate to their particular circumstances. To not question the extra additional cost of PPI or just signing a loan agreement without fully reading the T's&C's, is perhaps unwise? Or am I being too simplistic in my viewpoint?

dunstonh

We never once took PPI as an option. We never accepted PPI as part of the deal and it was never subsequently 'added'. So were we just lucky?

No you were not. The majority of the public never bought PPI.

I guess though, it has proved easy for some people to be 'swayed' into making a decision by some unscrupulous commission grabbing financial 'expert' or loan 'advisor', or they've actually thought about their own financial or employment situation and subsequently made a rational decision....maybe.

PPI is not seen as an adviser failure. It was mostly put in place by unregulated individuals (bank clerks, shop assistants etc). The two types of PPI that are still retailed today are both retailed via advisers (or direct to consumer with no clerks/assistants involved). The non-advised distribution of PPI ended. Most of those missold PPI policies paid no commission to the staff members. Ironically, the distribution channel that did get the commission was the most reliable. The problem was sales targets and sales pressure put on individuals. Threats of losing their job unless they hit target was the primary problem. Often those staff members were people who had worked in a bank for years when it was a clerical job and they were being forced to act in a way they did not want to or had never been required to. You put unregulated and poorly trained staff without the required skills in high pressure situations like that and you get missales.

consumers_revenge

On my Halifax mortgage there was something we were 'advised' to take ( this being a first mortgage ) of TPPI or TMPI or something similar. Is this something you can claim for anyone know ( still have paperwork somewhere )

[Deleted User]

consumers_revenge wrote: »

On my Halifax mortgage there was something we were 'advised' to take ( this being a first mortgage ) of TPPI or TMPI or something similar. Is this something you can claim for anyone know

You can complain about any insurance if you can show it was somehow mis-sold to you. However, being advised to take insurance on your mortgage would generally be deemed good advice, not mis-selling, unless it was not suitable for your circumstances.

Note that it it is not somehow wrong to have insurance and none is automatically refunded simply because you had it.

dunstonh

consumers_revenge wrote: »

On my Halifax mortgage there was something we were 'advised' to take ( this being a first mortgage ) of TPPI or TMPI or something similar. Is this something you can claim for anyone know ( still have paperwork somewhere )

No its not.

The Halifax TMMP was sold under advice. So, you would expect to be advised to take it out when it is needed.

It doesnt mean the advice was perfect. Anything can be missold potentially. However, most mortgage insurance complaints fail. Mainly as people do have financial needs. So, was the advice for you correct? e.g. if the TMPP was life assurance (which was the most popular segment of that plan), then it could be missold if you were single with a sole mortgage with no-one living with you. Or you are immortal.

So, is there anything that you feel they did wrong or are you just like the majority of people out there who sensibly took out insurance to cover their financial needs?

consumers_revenge

That's fine.


Just remember being 'advised' that would need to get 'out of work/unable to pay'.


Cheers.

jamethyst

Hi I have been informed today that my Financial ombudsman that you have to contact them within 6 months of getting your refusal reply from the lender/credit card in question. Is this correct?

safestored4

Yes. If the Financial Ombudsman has told you that this is the case why should you think otherwise.