The latest statistics from the Financial Conduct Authority (FCA) reveal that over £32 billion has been paid to consumers for mis-sold PPI. Payment Protection Insurance, more widely known as PPI, was mis-sold alongside loans, credit cards and mortgages.
Many people are unaware that they ever bought PPI with these products. Given the lengthy and, often, stressful process of buying a home, some people may have forgotten that they bought PPI with their mortgage.
However, it’s time to find out if you are one of these people. The FCA has set a PPI deadline of 29th August 2019. By this date, you must have identified if you were mis-sold PPI and contacted your bank regarding a claim.
The cut-off date is imposed to encourage people to make a claim, rather than put it off. The FCA has an advertising campaign, featuring Arnold Schwarzenegger, in place to encourage awareness of the deadline and explain how people can get help with making a claim.
How to Uncover Mortgage PPI
There are a number of ways to check if you ever had PPI on your mortgage. The easiest, though not always practical, way is to look over your old financial paperwork from when you signed the mortgage agreement. Of course, many people no longer have this, especially if the mortgage has since been paid off.
If you paid off your mortgage within the past six years, but can’t remember the lender, you can conduct a credit check to identify which company you had it with. From this, you can then contact the appropriate bank or lender to check if you had a PPI policy.
If you find the paperwork and see PPI listed, you have a case. It’s important to note that PPI was sold under many names, and if you find any of the following, you were mis-sold PPI:
- Mortgage cover
- Accident, Sickness and Unemployment (ASU)
- Payment cover
- Protection plan
Alternatively, hire a solicitor or PPI claims company to investigate any evidence of mis-sold PPI on your behalf. They might be able to uncover evidence of PPI, even if you stopped paying off the mortgage a number of years ago. A comprehensive check may also highlight if you were sold PPI on a credit card or loan, in addition to your mortgage.
Making a Mortgage PPI Claim
If you find evidence of mis-sold PPI on your mortgage, you need to act before the deadline to receive a refund from your bank or lender. You could be due a substantial amount of money. If you’re curious to know how much money you could receive from your claim, a PPI claims calculator can offer an estimation.
Once you have identified PPI on your mortgage, you can make your claim. However, it’s critical to explain to the bank or lender how the insurance was mis-sold to you. Here are just a few ways that PPI was mis-sold to consumers:
- You were told the insurance was compulsory
- It was added without your knowledge or consent
- You were not told the full terms and conditions, which includes being asked about medical conditions and employment
Once you have evidence and an explanation of how the PPI was mis-sold, you can then contact your bank to make a claim. If you don’t have time to do it all yourself, or you don’t want the hassle, a reputable claims company can act on your behalf. However, be wary of scam companies and never pay any money upfront. You should only ever pay fees in the event that your claim is successful.
The bank will notify you when it has received your claim. From this date, it should respond with an outcome within eight weeks. However, if your PPI mortgage case is particularly old, or your case complex, it may take longer to reach a resolution and for you to receive your due refund.
If the bank rejects your claim, you can refer your case to the Financial Ombudsman Service (FOS). Claims to the FOS can take a number of months — potentially even years — to be resolved, due to a backlog of PPI claims.
Don’t miss your opportunity to find out if you are owed a PPI refund. You have less than a year until the deadline, so act now.