Did you know that 64 million PPI policies were sold in the UK? PPI, or Payment Protection Insurance, was sold alongside credit cards, loans and mortgages as a way for consumers to pay back their credit in the event they became unemployed or sick.
However, as you are no doubt aware, PPI was widely mis-sold to customers during the 1990’s and early 2000’s. You might have received a letter from your bank informing you that you’re due a refund, or perhaps you’ve seen adverts on the TV promoting PPI claim companies.
Taking the time to check if PPI was mis-sold to you is 100% worthwhile. If it was mis-sold to you, you could be due a fairly large sum of money from your bank.
However, you must start your PPI claim as soon as possible. The Financial Conduct Authority (FCA) has imposed a deadline for all PPI claims. The official date to make your claim by is 29th August 2019. The aim of the deadline is to encourage people to make a claim, rather than put it off.
PPI was mis-sold with individual and joint accounts. For those who are separated or divorced, making a PPI claim on an old joint account can be a little more difficult. However, a refund is still possible and it shouldn’t put you off from making a claim. Below, we explain how you can make a PPI claim if you’re divorced.
How Much Is a PPI Refund?
According to the FCA, the average PPI payout is £1,700. For many people, this is an incredible amount of money and can provide a much-needed cash boost. Whether it means paying off debt or being able to splash out at Christmas, PPI claim refunds have helped so many people and it could help you.
Since 2011, over £30 billion has already been put into the pockets of consumers. But the banks are still setting aside millions of pounds, as they expect to have to pay customers a significant amount of cash before the August 2019 cut-off date.
Reclaiming PPI from a Joint Account with an Ex-Partner
Problems can occur for divorced women, if they previously opened a joint account with their ex-partner. In 2016, This is Money revealed that some RBS and Natwest customers did not receive refunds because the PPI refund was allocated to the primary account holder — who was often the husband. The banks have since claimed to resolve the issues, but it’s worth doing the following if you are divorced or had a previous joint account with a partner.
- Discover if the account had PPI — This can be done simply enough if you have the old paperwork. PPI will be listed on there if you had it, but note that it could be listed as a different name. If you no longer have the paperwork, you’ll need to ask the bank. You will need as much information about the account as possible for them to look for PPI. Alternatively, a PPI claims company will be able to investigate this for you.
- If there was PPI, make a claim — If you discover PPI, you can make a claim. If you are still in contact with your ex-partner and have an amicable relationship, it’s worth finding out if they received PPI from any joint accounts. If they did, the bank is entitled to give you 50% of the refund amount. If you’re not sure or no longer in contact, you should still contact the bank regarding a refund.
- How was PPI mis-sold? — When making a PPI claim, you will need to explain how the PPI policy was mis-sold to you. Many consumers were told the insurance was compulsory or that it would improve their credit score. Understand how it was mis-sold to you before claiming.
When making your claim on a joint account, different lenders will react in different ways. Some will give you 50% of the money, while others will first need confirmation from both policyholders. If you are the first named person on the account, the bank may give you the entire refund.
It’s possible to make a claim yourself for free, but if you feel apprehensive about making a claim or don’t have the time, you can instead use a reputable no win, no fee PPI claims company. Never pay a company upfront and always check how much a company will charge. The best companies charge less than 20% of the refund amount.
Start Your PPI Claim Now
For many of us, August 2019 seems like a long way off. But these 13 months will soon fly by. What’s more, if you wait until next year, chances are, others will too, meaning there is going to be a queue for your claim to be resolved. If you no longer have your old financial paperwork, a PPI claim can take a number of months. If you start now, you should receive a refund by Christmas — just when most of us need it! Don’t delay and miss your opportunity to reclaim PPI before it’s too late.