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PPI FAQ's

Please find below frequently asked questions we get with regards to PPI and PPI Claims;

 

  • Is this Ethical?
    Not something we often have to deal with, however we are sure there are a few amongst you that feel that claiming back a PPI Policy from your lender is somewhat deceitful.

    If your one of those people who always pay your dues and believe that something like this is against your morals we commend your belief, many would agree.

    Realistically though do you owe the same courtesy to the lenders that you fight against on a day to day basis.  In a world of increased overheads, taxes and inflation. When you call your credit card company and eventually get around to speaking to someone having been pushed in one direction or another by the electronic switchboard, your put through to an Indian call centre only to find out when you have eventually been able to gain some satisfaction that the letter they sent out 2 weeks later cost you £20.00.

    It’s a similar scenario with the banks who seem to love lending money when your circumstances are good, the minute you miss a payment things start to turn ugly.  The letters start to come and the stress starts.
    Store cards are a fine example of extortionate interest rates, the friendly person selling you a pair of jeans is also so keen on selling you a store card with amazing advantages.  When you agree and get your first bill you realise the interest is crippling.

    Have you ever tried to claim back payment protection from the company so willing to sell it to you.  If you ever have you will realise just what a nightmare this is.

    You are the only person that can judge the ethical nature of what we are doing, we believe it is a dog eat dog world and these companies would not without financial gain do any favours for us.
    We will therefore help you wherever we can pursue your case independently.
  • Is there Possible SFA intervention.
    Many people ask us about SFA intervention in relation to the miss selling of PPI Policies as they have total control over the legal profession and have placed sanction on law firms operating in the ‘unenforceable’ marketplace. They have also restricted introductory fees for PI claims.

    The answer lies within existing case law and the fact that Legal journals have been advising their members to move their operations into the PPI market after the collapse of the conveyance boom and are totally confident in the sustainability of the market for several reasons:
    • The PPI market now has legal precedent with cases settled on a daily basis
    • Hurstanger vs Wilson laid the precedent for the refund of hidden commissions
    • Lenders have been fined over £11,000,000 for the sale of PPI
    • The sale of PPI was banned in 2009 by the FSA
    • The FOS have laid stringent guidelines for the repayment of PPI
    • Major lenders have specific refund divisions in place

       

    The only threat to reclaiming back your PPI in the future is if the lenders seek assistance from the government to stop such actions against them. We have taken advice and as the issues we have identified are breaches in common law it is felt, by knowledgeable solicitors, that it would take at least five years for laws to be changed to allow your opportunity to seize.

    Judges are only just catching on to the issues surrounding these agreements and are now seeing where lenders have been breaching the law for years.

  • How far back can you claim on PPI premiums?
    Many people ask us how far back can you go on claiming back a PPI Policy.
    As it stands, the sale of PPI as an attachment to a loan was banned in May 2009 and PPI claims are admissible up to six years after the loan has been redeemed.

    We also currently accept claims from all loans which were taken out after 2004 or redeemed in 2004.
    All current loans can obviously be claimed against irrespective of start date.

  • What Loans Do you take on?
    Our target market is the PPI market. This involves car loans, home improvement loans, personal loans, secured loans, unsecured loans, mortgages, store cards and credit cards.  As the issues we have identified have few time limits, legally, we are able to run claims on both current and previously redeemed loans.

  • What is your fee?
    We take 25%+VAT of the amount awarded, however in the case of debt management customers or customers in an IVA we offer this service at no fee.  We never ask for an upfront charge.  

    Some of the agreements in the larger packs will discuss fees and charges but you must bear in mind that we have secured funding for each case. This means that the initial fees and ongoing costs discussed in your CFA are provided for you and therefore you have nothing to fund yourself and zero risk.

  • What If I have not got my contract or loan document?
    Many people do not have a copy of their loan agreements, in this case you can simply request these documents from your provider.  If you are having any problems in doing so your may wish to download our standard letters.  These will help you legally to obtain your documents. 

    If your loan is no longer current please download this letter.

    If your loan is current, please download this letter.

  • How will this effect my loan?
    You should find a reduction in your loan payments after agreement has been reached.

  • What is a conditional Fee Agreement (CFA)?
    A Conditional fee agreement is a contract between the claimant and the solicitor. This allows the solicitor to run a claim utilising “Access to Justice 2000”.

  • If my cases runs on a CFA what Fees do I have to pay?
    The agreement states that you, the claimant are liable for your solicitor’s costs. In theory this is true. If you were not liable for the costs then you would not be able to reclaim the costs from the other side if you win your case.

    The agreement states that you may be able to reclaim part or all of your costs from the other side. Again this is a cautious stance as the scheme we have set up insists that the lender does pay your costs if they wish to settle the claim without legal action taking place.

  • What is After the Event Insurance (ATE)?
    Each case over 5k is insured by After the Event Insurance. This is an insurance policy that provides protection for both you the claimant and your solicitor. It pays your costs and the other side’s costs if your case loses, for whatever reason.
    Obviously we do not expect to lose many cases at all, but solicitors would not take your case on and the funder would not fund the case without the protection of ATE.

    In our model the premiums are deferred by the Insurance provider and only become payable should you win. The premium itself is recoverable from the other side if you win and forms part of the solicitor’s disbursement costs.

  • What happens if you lose?
    All your solicitor’s costs and those claimed by the lender will be covered by your ATE you will pay NOTHING.

  • Can we help a client if they are in an IVA of debt management program.
    The simple answer is YES.

    The service for clients in an IVA or DMP is FREE. Because our service is free to this sector we are open to markets that the traditional claims companies cannot enter. For example we are able to offer our service to debt management companies and debt charities who are not in a position to deal with those companies that charge fees.

    Real Claims has a distinct market advantage here in that the whole point of offering a fee free service is that you remove the biggest obstacle to an individual using the service.

    Companies who have no funding normally rely on cases being run on contingency basis. In other words, a percentage of the compensation is levied to the client to cover the fees incurred in running the case. Many clients will not receive any money as the compensation will be used to reduce the current borrowing. This will put the client at risk if they do not have the money to repay the fee to the claims company or solicitor firm that is running the case.

  • How long does it take?
    The whole process, usually takes no longer than 4 months, in many cases we settle with the lenders a lot sooner it just depends upon who the lender is, our experience in how these companies work has led us to achieve a fast working protocol.  

  • Will it damage my relationship with the lender?
    It is your lender that has miss sold you the PPI or personal protection insurance policy to begin with.  You are claiming your legal right and as such the lender has no right to make your life difficult.

  • What if I have made a claim on my policy?
    If you have made a claim on the PPI policy it is unlikely that the judge will award you the full value back.  That is not to say that the claim will not be successful, we would have to look at this and take an opinion.

  • Why would the policy be miss sold?
     There are many reasons why your PPI Policy could have  been miss sold such as, if you were self employed at the time, a student or worked within the NHS.  Also if you felt you were forced into taking the policy, not given the opportunity to shop around or had a pre existing medical condition.  The list really is rather extensive and it is best to give us a call to discuss.

 

DO YOU THINK YOU HAVE BEEN MIS SOLD?

We can help.  If your claim is likely to be a success we will manage the whole process for you and update you every step of the way , it won’t cost you a penny*.  If your not sure if you were mis-sold call us now for a free consultation.

For more information on PPI please select from our PPI menu positioned on the top right of this page.