Financial Mis-selling and Mis-sold PPI FAQ

What is Payment Protection Insurance (PPI)?

PPI is a type of insurance sold alongside loans, credit cards etc, that is designed to protect borrowers, and is supposed to cover the repayments if you can't make them, for example if you are unable to work following an accident or illness, or lose your job.

How do I know if I have been Mis-sold PPI?

Many of our clients did not even know they had been sold PPI. You can look at your loan agreement or phone your lender to find out if you have purchased PPI, how much it is costing you a month, and if you purchased a single premium at the start of your loan.

Why has Mis-sold PPI become big news?

Banks and other lenders earn very small profits on loans and credit cards. Lenders usually make more money from the insurance than the loan itself. This provided an incentive for lenders and their staff to sell PPI policies, whether they were appropriate or not. The Financial Ombudsman Service (FOS) has found that PPI was systematically mis-sold to millions of people. The Citizens Advice Bureau (CAB) have called it a 'Protection Racket'. The Financial Service Authority (FSA) have found that a large number of lenders contravened their 'treating customers fairly' and the 'acting in a fair and reasonable manner' rules.

How do I know if my PPI was mis-sold?

There are many factors to take into account. If the entire cost of the PPI was not explained to you, or if the company only quoted the cost of the loan with the PPI attached, then you can claim. An acceptable sales procedure should have fully informed you of the cost of the PPI, advised you that the policy was optional, asked about pre existing medical condition, your employment status and more. Bartletts offer a free consultation. Please use our short form to send us some basic information about your loan and we will call you back to discuss the matter.

How much will it cost?

When we act for you under a 'Contingency Fee' agreement, we do not require you to pay upfront. If your mis-sold PPI claim is not successful, we will terminate the agreement at no cost to you. Where your PPI claim is successful we take a percentage of the damages recovered from the lender. This percentage is charged at one of the most competitive rates in the UK market.

How does the reclaim process work?

We will assess you claim free of charge. If we can help, we will seek your authority and correspond with the lender on your behalf. All information can be taken over the telephone, fax or post, so you do not have to visit us if you do not wish to. If the lender or finally the court agree that you were mis-sold the insurance, you should get back all the premiums you have paid, with interest added at the normal statutory rate of 8%.

How long does the PPI reclaim process take?

Cases take between 4 and 6 months. There is no such thing as a fast track procedure, as you may have heard promised by claims management companies.

Why do I need a solicitor?

Proving financial mis-selling is not a straightforward matter. Each case has it own set of facts which needs to be considered by a specialist solicitor. As you would expect, the lender will defend any claim with a top quality legal team. However cases usually settle before trial so you will not have to go to court.

Who are Bartletts Solicitors?

We are a regulated firm of solicitors with sound experience in consumer credit and financial mis-selling. Bartletts Solicitors are 150 years old in 2010 - we were established in 1860, and have been trusted by clients ever since. We are a fully regulated firm with an excellent reputation serving clients all over England and Wales. The practice continually invests in training and information technology so that our staff are able to meet client expectations in an ever changing world.