05 October 2015
I've read about people making claims for PPI compensation that are false. I don't know for sure if I have a claim, and so I am more than a little reluctant to contact my bank. If I don't have a claim will I be in trouble?
There have been many instances in the media that highlight the huge number - or so they say - of claims for mis-sold payment protection insurance (PPI) that were not genuine.
It is important to note in these circumstances that the people or companies who attempted to make these claims on behalf of customers, did so knowing full well that there was no claim as the customer did not have the policy on their account.
This is very different from someone with PPI attempting to claim their money back and being refused.
Everyone who was mis-sold PPI is entitled to claim their money back, whether they are in arrears or not.
If your claim is successful, you may find that the bank knock off this amount of cash from the debt that is owed to them, but only the debt that is considered to be arrears. If you still have an outstanding amount to pay on the loan, you can clear this with any PPI compensation you receive but, this money should come to your directly because, it is for you to decide how you spend your PPI windfall.
There may be other, more complex issues for those who have IVAs or insolvency agreements, and so if this is the case, it is always worth taking advice from a debt specialist or contacting PPI Scotland for help.
But to emphasise the main point, EVERYONE is allowed to claim compensation. There are no barriers to making a claim, and neither should there be.
Yes it is! Banks and lenders were told to write to people who they know had PPI and to invite them to make a claim. In some cases, people are unsure if they had PPI as the account or loan may have been paid off some time ago but, you could still be owed money.