Despite being many years ago, the majority of people who have yet to claim Payment Protection Insurance (PPI) took out policies which they probably did not know about in the 1990s. The 1990s was the “heyday” for the mis-selling of PPI and this is why, despite the huge levels of refunds to date (and in October 2015 – this stood at £25billion) it is still only a small percentage of the potential recovery in relation to the mis-selling of PPI. This is because people with facilities in the 1990s may well have closed their facilities in that time, or in the early 2000s, and have not looked at making any claim.
The main reasons behind people not making claims is that they do not have any paperwork or recollection of whether PPPI was applied or not. They are unable to provide details of the facilities and account numbers, and certainly have no paperwork that would clarify any of the above. However, this does not preclude an individual from making a claim – as long as they know the lender that they took out the product from. The product can include any credit card or loan, mortgage, store card, hire purchase (HP) or any other type of finance.
We have been dealing with complaints in relation to the Banks since the late 1990s, following our time working in High Street lenders in a variety of roles. With the PPI scandal, we take on considerable numbers of clients, and primarily we specialise in those who do not have any information. We spend our time contacting the lender with the limited details and get them to ascertain whether facilities were held in the past, and if they were, get them to confirm whether PPI was applied or not. Of course, there are never any guarantees in finding the information. However, in the vast majority of cases, information is located, and if PPI has been applied, we look to make a full claim on behalf of the client.
Any claim from the 1990s period can be considerable, in that the Premiums are calculated from the time that the first one was applied until the facility is closed, or up to the present date. However, the primary engine for driving the refunds up is the interest that is refunded, and which is calculated upon the Premiums over the full duration (at the prevailing rate of interest applied to the particular facility involved).
In relation to credit cards – this can be considerable. We have found that in one particular case, a client who had a facility with the Halifax in the early 2000s had paid Premiums totalling approximately £2,500. Ultimately that client received a refund in excess of £18,000! This was due to the interest that was applied upon those Premiums for the duration, up to the date of refund. In addition to the interest, they also received compensatory interest which bumped the costs up even further.
There are never any guarantees of success, particularly with High Street Banks and other various lenders. If, for some reason, we are unable to locate any PPI or the facility is just too old for records, then there is no fee to pay.