Four myths which may put you off claiming PPI compensation
Banks and building societies have paid out more than £30bn in compensation but new research from consumer group Which? reveals many people are still confused about PPI and how to claim.
A survey of 2,000 people found two thirds have never submitted a claim, but many may be eligible.
Which? is urging people to take action before the 29 August deadline.
Our comprehensive guide will tell you all you need to know about claiming compensation. Click here to read it.
But according to Which?, a number of misconceptions could be putting people off claiming.
Here, they clear up some of the biggest myths:
You can’t make a claim if a bank or provider has ceased trading
This isn’t true. Just because your bank or provider doesn’t exist anymore, doesn’t mean you can’t receive compensation. Sometimes another business will take over responsibility for PPI complaints from the original provider.
For example, when Egg went out of business, Barclays took on its PPI business for credit cards and the PPI business for Egg mortgages was bought by Citi Bank.
Check your paperwork or online for information about the new provider.
If your provider has gone out of business, you may also be able to claim on the Financial Services Compensation Scheme (FSCS)
You can’t claim mis-sold PPI on behalf of a deceased relative
Again, false. You can complain on behalf of someone who has died, as long as you have the legal authority to deal with their affairs.
Banks or providers will likely ask for proof you have authority such as a copy of the ‘grant of probate’.
You have to fill out loads of forms to claim
Not true. Some banks send long forms requesting lots of information. Customers of Lloyds Bank Group, for example, reportedly received a 12-page questionnaire. However, you do not need to fill out the whole form for a claim to be progressed.
Banks automatically check all products if a claim for PPI compensation is made
No, this isn’t true. In fact, banks have reportedly been dodging potential refunds by only looking into individual policies named. Which? has a free tool that will ask the bank or provider to check all products as default to ensure people do not miss out on compensation for products they haven’t specifically enquired about.