Thousands of people could be set for a payment protection insurance (PPI) windfall after discovering a loophole that means they may be able to claim PPI compensation on behalf of a deceased relative.
How many people have already claimed PPI?
The PPI compensation bill has surpassed a massive £30bn. With less than a year to go until the deadline, we are urging people to get in touch and start their claim.
Banks have set aside a further £15bn to compensate borrowers. This suggests that they expect a huge influx of claims before the deadline.
Consumers should act now to take back every ill-gotten penny from lenders. This can include making a claim on behalf of a relative who has passed.
Can you claim PPI on behalf of a relative?
Were you named in a relative’s will as a personal representative? You can make a complaint on behalf of their estate.
Which? has discovered that 90 percent of people aren’t aware they can seek compensation on behalf of a loved one who has died.
Plevin and Doran
Two landmark court rulings could result in increases in the PPI payout you get for your loved one.
The first is Plevin. This case saw the lender pay the broker a large commission. This was not disclosed to the borrower Susan Plevin when she took out a credit agreement and PPI. As a result, the judge ruled that the failure to disclose the commission constituted an unfair relationship between the broker and Susan Plevin. Therefore, the broker would have to compensate Plevin appropriately.
Following this, the Financial Conduct Authority (FCA) stated that commission of 50 percent and above amounted to an unfair relationship. This opened up fresh grounds for complaint for thousands. They could be compensated for any commission paid above 50 percent of their PPI premium.
A recent court ruling in Doran v Paragon went a step further, with the judge awarding compensation for the entire commission and PPI premium resulting in a payout three times higher than anticipated.
If you or a deceased relative took out a loan, store card or mortgage you might be able to get thousands in compensation. Get in touch today for a free consultation with our solicitors.