Many people ask the question – can they have Payment Protection Insurance (PPI) on their mortgage? The simple answer is yes. Although a number of Lenders provided some degree of cover, much of which was not Payment Protection Insurance, there are a considerable number of mortgages, particularly in the 1980s, 1990s and early 2000s where Payment Protection Insurance was attached to mortgage facilities, or secured borrowing.
This form of Payment Protection Insurance cover was particularly poor and sales were highly questionable due to the type of the facility that clients had (in that they were secured and therefore, if there were any problems with the individual, ultimately the asset could be sold). In addition, the majority of Payment Protection Insurance cover, particularly those where lump sums were charged, would only cover a period of 5 to 7 years, whereas most mortgages or secured facilities would be spread over periods considerably longer than this. A number of clients that we have represented have found out from our investigations that the Banks could easily have sold the traditional insurance product, which would have been far cheaper, have covered far more of the loan, and would have provided consistent all-round protection for the individual or family involved.
In addition to looking at Payment Protection Insurance claims against mortgages, we can also look at a whole host of other facilities that clients had including credit cards and personal loans. Up to the end of October 2015 the Banks have refunded £25billion worth of Payment Protection Insurance claims, which includes:-
- The Payment Protection Insurance Premiums;
- Interest and;
- Compensatory interest upon the full balance.
Due to the very nature over the way that Payment Protection Insurance has been applied, and when it was applied, claims can be considerable as they are backdated, and the interest refunded reflects the prevailing rate of interest on the facility that the Payment Protection Insurance was applied. In respect of credit cards, this is obviously going to be far higher, as interest rates on these facilities could range easily from 25% to 30%. Therefore if you have had a credit card in the late 1990s and Payment Protection Insurance was applied, then refunds can run into many thousands of pounds and, in some cases with relatively low levels of Payment Protection Insurance premiums being paid, running into maybe only £1,000 to £2,000. However, refunds can accumulate to in excess of £10,000 in total.
Of course, the primary concern that most clients have is that they have no information to confirm if Payment Protection Insurance was applied, or to establish what facilities they had with their various Lenders. All we ask for is the name of the Lender that you would like us to investigate and, from this, we can establish in the majority of cases whether Payment Protection Insurance was applied to any facilities that you may have or have had with them. Of course, on occasions, the Lender (for whatever reason and mainly due to age) are unable to locate the information and details on you. If this is the case, then our investigation will conclude and no fee is payable as we work on a purely “No Win No Fee” basis.