Insurance Payment Protection Compensation

T

The Moo

Senior member
 Warwickshire
I met up with a family member I hadn't seen for ages recently who told me that he was in a position to put his finances in order because he was about to pick up payment protection compensation payment of £21K.

I really have no feel for this as I have never got involved in such things, but my interest was piqued. I have no idea whether or not it was for a mortgage or personal loan(s), but is this an average size of payment?

Does a payment of that size suggest he had a large amount of debt or are people able to milk it for all they can like with whiplash claims regardless of the amounts involved as the financial institutions haven't got the resources to challenge the claims?

Any thoughts?
 
It can easily add up.

Some of the PPI charges were 1-2% of the amount insured per month, so if you regularly had high balances then you were paying £10-£20 per £1000 every month, on each card, for however many months you had a card.

The same went for loans & mortgages, so some people were paying £100s per month on insurance.

So if you had £20k on cards, £200k on mortgage, and £10k on loans, you're looking at over £200-£400 per month on PPI alone - which over a 10 year period would equate to about £24k-£48k.

The problem with the current PPI claims industry is that everyone who didn't have to use the insurance is now claiming that they never wanted it, didn't know it was optional, didn't know it was in place, or didn't realise it wouldn't pay out in their circumstances.

I've never had any of these standard PPI policies as they all state that they won't pay out if the nature of your work is not regular, and they won't pay out for the first 2-6 months anyway (depending on the policy). Being self-employed means that sometimes I'll be out of work for weeks/months and wouldn't have been paid out anyway.
 
I thought that originally, PPI was sold as mandatory for mortgage payments?
 
mmm-five has nailed it. I see the banks are looking to try and get their costs back for all the false claims they receive, mainly from these Claim Management Companies. I believe that the vast majority of claims are by people who have never held an account - isn't this fraud? Either way, lots of people jumping on the bandwagon. And in fairness, why not. These policies have widely been missold. My worry is that as the claims hit their bottom line only the naive don't realise who will end up paying in the long run.
 
Putter Whore said:
I believe that the vast majority of claims are by people who have never held an account - isn't this fraud? Either way, lots of people jumping on the bandwagon.
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Absolutely have no reason to doubt the genuiness of my relative's claim but I have always wondered about this when the phone calls started coming in 3 times a day........
 
Back in the 80's and 90's certain car finance companies used to ask us scrupulous salesmen to say that the finance application was accepted if the customer took out PPI. This was a blatant fib . I would certainly hope people that suffered from such dubious techniques got their money back but worry that anyone that ever took it out,without deception would now try falsely to get a rebate.
 
regarding the credit card ppi's - we used to have a Sainsbury's card and this insurance was on this card, so much per £100 balance etc.

We knew what it was for and kept it on there, so dont feel we are justified a claim.

What I cant understand though, is how can people say they didn't know they were being charged it? I mean, its there on your statement every month....if they didn't question it, then surely thats their fault, not the banks?

I've taken personal loans in the past where the ppi has been pressure sold to me...or, attempted! I took it out then called back the following day to cancel it.

I think there are a lot of people out there who are genuinly jumping on the bandwagon - they had a product that they understood and now want a refund, which isn't right. I appreciate though that there may be others who really did not know what was happening, but I cant understand why not if they checked their statements correctly. The only genuine ones I think are the ones that were told they had to have the insurance etc...
 
Your last sentence is the really issue I think, when I had a mortgage on my first house I was told I had to have it.
 
Chap I know recently had over 20K paid out to him and he's now getting all his family members to do the same and put claims in, his mother has had a 5K pay out. It kinda annoyed me when I was told as I know said person will milk any system.

I've had PPI for all sorts of loans over the years, normally when I applied for the loan it specifically had a tick box on the forms as to whether you wanted PPI, sometimes I ticked it sometimes I didn't, but have always been in full time employment, pension, sick leave etc . I've also got PPI on various credit cards. As Kevin mnentioned I don't quite understand how these claims work as surely PPI wasn't forced on you as you must have known if yoiu were paying it or not. Or is it the case of.....if you asked for it or ticked the box to have it included on a personal loan, the fact your in full time employment etc, for me in Government means the lender should have pointed out you didn't really need it as I had/have stable employment?

Tim.
 
More the other way around I would have thought, i.e. the PPI would not have paid you out as you were self employed or temp or so, so basically a useless insurance for those.
 
TitanTim said:
As Kevin mentioned I don't quite understand how these claims work as surely PPI wasn't forced on you as you must have known if yoiu were paying it or not. Or is it the case of.....if you asked for it or ticked the box to have it included on a personal loan, the fact your in full time employment etc, for me in Government means the lender should have pointed out you didn't really need it as I had/have stable employment?

Tim.
Click to expand...

Some people may have taken out PPI willing but when they would have gone to make a claim then found out they were not covered because of XYZ. This is why they are entitled to claim as it was miss sold.

I've never taken it and I'm sure I was refused a credit card once as I opted not to take it. A colleague applied for the same card and also was refused. Both our credit ratings are very good.
 
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