You are here: Home - Credit Cards & Loans - News -

Women missing out on their half of PPI claims

0
Written by:
23/02/2018
A Payment Protection Insurance loophole put in place by the banks could see divorced women miss out on £3.4 billion every year.

People who take out a joint financial product with their partner could be eligible for PPI compensation, but may be named second on the policy and won’t know if their former partner makes a claim.

The problem disproportionately affects women, says claims specialist First Target Recoveries, many of whom may be due thousands of pounds.

In 2016, NatWest and Royal Bank of Scotland refunded thousands of divorced women who lost out after RBS-Natwest issued the full PPI payouts on joint financial products to their former partners. This issue was only rectified when PPI experts brought the error to the attention of the bank.

Banks are now obliged to half a PPI refund for joint accounts in reserve, but aren’t obliged to tell the other partner, leaving billions sitting unclaimed. The average PPI payout is £2,000, with some people having received over £100,000 back from the banks.

Chris McCabe, associate director at First Target Recoveries, said: “After wading through the messy process of dividing assets and building a new life without your former spouse, a divorce could set you back up to £70,000. Many people have been shocked to discover that following their split; their partner has claimed a PPI refund on their shared financial products and they can receive half of that refund, yet they’ve been left in the dark and out of pocket for quite some time. In some instances, they never find out about the money.

“Others have avoided making a claim for fear of having to deal with their former partner again, however as long as they know which financial products they took out, they can make a claim without ever needing to speak to their partner.”

A deadline has now been applied to claim PPI compensation – August 2019. See YourMoney.com’s Guide to claiming PPI for more information.

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
HouseDeposit
First-time buyers use “drastic” measures to get on the property ladder

More than 250,000 people bought their first property last year, but mortgage advisers have revealed the lengths they went to...

Close