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Scotland Wide PPI Specialists

PPI Myths!

20 July 2015

Can you spot fact from fiction, or does the whole compensation claims for mis-sold payment protection insurance (PPI) still appear shrouded in mystery? Find the answers here:

Myth 1 - PPI was compulsory

PPI is OPTIONAL! In other words, you did not have to buy it, regardless of what the bank representative told you.  

And neither was it a bad idea. Unfortunately, it was the way that it was sold that presents the issues. The idea behind PPI was that if you were unable to continue making payments on your loan or other credit accounts, then the PPI would kick in for a certain amount of time and payments would continue.

Myth 2 - The banks do not know who they owe money too

Over the years, the banks' attitude to PPI compensation has changed.

Initially, they were reluctant to pay anyone any money back and when they did, they made some pretty derisory offers. However, as time has marched on and their reputation for being trustworthy has taken a battering, the banks are now more willing to settle claims, and settle them quickly.

That said, there have been some cases where customers have not received the right amount or customer claims have been rejected. The Financial Ombudsman Service are working hard on these cases.

Myth 3 - using to a claims management company is a waste of time and money

There has been a lot written about claim management companies making disingenuous claims, clogging the system and charging customers a huge amount of money and so on.

Some people are happy to approach their bank or lender to ask for their money back but other people are not so confident to do so.

We do charge a fee for our service, just like other professional services and companies do.  It is your choice!

Myth 4 - if the bank say they don't owe me anything, there is nothing I can do about it

Not true. On your behalf, we go back to the bank or lender and ask them to reconsider their decision. If they continue to refute your claim, you can ask the Financial Ombudsman Service (FOS) to look at your case and make the final decision.  

But, FOS is dealing with a huge number of PPI cases. They deal with their caseload in chronological order, which means that there may be a significant delay, up to several months in some cases. On the positive side, however, the FOS upheld 7 in 10 of cases again favour of the customer. So, after a wait for a decision the odds are in your favour.