Mis-sold PPI FAQs
What is PPI?
Payment Protection Insurance (PPI) is a type of insurance policy which is designed to cover your repayments of a loan/credit card/finance agreement in the event of you are unable to work due to an accident, sickness or unemployment.
What is PPI mis-selling?
Following a judicial review of the sales processes of PPI, it transpired that a large number of consumers were sold unsuitable insurance policies, or in some instances were not advised of the policy or the true cost of it. Additionally, some customers were unaware that they even had PPI as it was added without their knowledge.
What is the average compensation paid for a mis-sold policy?
This will depend on when the policy was taken out, how long it ran for and how much the payments were. Typically you will receive compensation equal to all of your premiums, plus any interest paid on those premiums as well as statutory interest of 8% per annum.
How long will it take to receive my compensation?
This will vary from case to case. In some instances, once a claim is submitted, compensation is paid within 2 or 3 months where the lender is quick to respond; in others it could take significantly longer (up to 24 months if the complaint is referred to the Financial Ombudsman Service). In our experience the majority of claims are settled within 12 weeks however in all instances, the time it takes will depend on your specific circumstances and most importantly upon the lender.
How much is DRSP’s fee?
We can carry out a completely FREE, no obligation check to establish if you have paid PPI on any accounts. Where PPI does exist, we will let you know and you are then free to either submit a claim yourself or you can instruct DRSP to submit and manage your claims for you. If you choose to use us to deal with your claims, the fee for any successful claims is 20% plus VAT. This amount is payable on settlement of the claim. This means that for every £100 of financial benefit received a fee of £20 plus £4 VAT is payable.
When a lender makes an offer, it will almost always include statutory interest which is set at 8% annually. This is basically compensation and is included due to the customer being deprived of the money they were paying the premiums for fees.
The statutory interest; due to its compensatory nature is classed as taxable income. Lenders will normally deduct tax (at the basic rate of 20%) from this and they will send it to HMRC automatically. DRSP’s fees are due on the gross offer prior to any deduction of tax.
Can I cancel my claim with DRSP?
You can cancel your claim with DRSP at any point although a fee may be payable under Section 8 of our Terms of Business if this is done outside of your 14 day cooling off period which runs from the point your signed Terms of Business are received. Should you wish to cancel, your cancellation does not need to be in writing but a cancellation form is located here should you wish to do so.
What if a lender sets off my compensation against a debt balance?
In these instances a fee will still be payable as you will have benefitted from a reduction in the balance.
Can I make a claim against a lender if I have paid off the lender?
You can make claims against anyone who has mis-sold PPI to you regardless of when it was taken out or if the line of credit is still running. However, some restrictions may apply on the basis of the lender and the date the credit was obtained.
If I do not have full details of my lenders and account numbers, can I still make a claim?
Absolutely. DRSP can issue Subject Access Requests on your behalf to obtain a list of all accounts you have held with a specific lender and whether or not PPI was or is present on each account. However, the more information you can provide us with regarding any correspondence, previous addresses and information about when and how various credit was taken out will enable us to satisfy your claims more quickly.
Will I receive correspondence from my lenders during the claim process?
Almost certainly yes. In most instances lenders will send a copy of any correspondence both to you and DRSP. In any case, any correspondence you receive can be forwarded to DRSP to deal with on your behalf.
Can I make a claim if I am in arrears?
DRSP can help regardless of any arrears you may have. However, if you are insolvent, you may need to seek consent from whoever is dealing with your insolvency. Our claims process for insolvency practitioners can be found here.
Are DRSP authorised to manage my claims for PPI?
Yes. DRSP Limited is registered in England & Wales No.07678656. Registered Office 6thFloor Fountain House, 83 Fountain Street, Manchester M2 2EE. Regulated and authorised by the Financial Conduct Authority (FCA) in respect of regulated claims management activity, on Interim FRN: 833456.
To start your claim either click the Start Claim button or contact us on 0800 849 5078.