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SCOTTISH PPI CLAIMS

Scotland Wide PPI Specialists

PPI Jargon – What Does it Mean?

14 May 2018

There seems a language of all its own surrounding the PPI mis-selling debacle and the compensation being paid to customers. With potential billions of pounds yet to be claimed, we thought we would provide you with a handy guide to some of the jargon you may come across as you make your PPI compensation claim.

Words

Jargon

Explanation

PPI

Payment protection insurance is the name given to the product that has been mis-sold to thousands of people. But not all banks called their insurance product of this kind PPI. Look out for names such as 'card care or loan cover etc.

 

redress

This is another word for compensation and is the monies that you get back as compensation.

windfall

If you are in debt and have an IVA to help manage your debts, you will need to declare any PPI compensation as a windfall. This money will then be taking into account to cover debts and creditors.

Single premium policy

Some PPI products were charged at a monthly price, whereas others were sold and the customer paid for it in one lump sum. These are no longer sold in the UK as the issue was that not only was the policy unsuitable for people in many cases, they were also not lasting the length of the loan and, when customers cancelled them, the bank did not reimburse them their money

 

Advised sale

This is where a customer may have been advised to take out the policy. For example, if you were led to believe that this policy was suitable for you, then this constitutes and advised sale. Since the mis-selling of PPI, when any financial product is sold to you on an advised basis, you must receive a letter that details all the reasons why it is the right policy for you.

 

Alternative redress

This is a common phrase and is used to describe a loophole within the law that some banks are exploiting. Instead of compensating customers the full amount, they are paying back the difference between the cost of their policy and the next cheapest.

UPDATE Banks and lenders have seen the errors of their ways and are now compensating fully.

term

This refers to how long your loan lasts for, such as 10 year term or 5 year term. In other words, if you borrow a £10,000 over a 10 year term, by the end of 10 years you will have paid it back.

It is important as it has been discovered that some PPI policies fell short of the term of the loan, hence in other words, the PPI stopped covering you in year 8 of the loan, meaning if you wanted to make a claim after this, you would not be able to.

PPI deadline

This was - and still is! - problematic for many people but the Financial Conduct Authority has decided to impose a PPI deadline. If you want to complain about a PPI policy sold to you before summer 2017, you must do so by 29 August 2019 or miss out on claiming your money back.

There are many other terms, buzz words and jargon used when it comes to PPI, call us here at Scottish PPI Claims and we can help you cut through the words and get you your money back!


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