With the deadline to make a claim fast approaching we look at how PPI was mis-sold and what you can do to make a claim before 29th August 2019.
Without your knowledge
For many, the PPI scandal seemed to come out of nowhere. Despite never hearing of the product, millions of people were shocked to discover that they had fallen victim to mis-selling.
Although PPI was an entirely separate entity to the initial financial agreement, it was sold as part of it. Advisers had a duty of care to ensure that the customer fully understood that PPI was optional, and whether or not it was suitable for them.
In many cases, PPI was sold to people who were-self employed even though they were not eligible to claim on the insurance.
People who were unaware what they were signing up for at the time, or that it was optional, have the right to claim.
PPI, like any financial product, was attached to sales targets. Sales advisors pushed the product as it was essentially an easy sell. Offering security in the event that payments couldn’t be made, PPI was a valuable product for those eligible.
However, many were talked into taking the product despite not being suitable for it.
At one point, PPI brokers offered sales advisors a very high commission on the product as an incentive to sell. As a result, the duty of care shifted from the customer to the broker, as they provided the greater financial reward.
Bringing the scandal to light
This practice was brought into the limelight in 2011, when a case called Plevin was brought forward to the Courts. One PPI customer, Susan Plevin, argued that the level of commission charged on her policy constitutes an Unfair Financial Relationship. The judge ruled in the customer’s favour.
Following the ruling, the Financial Conduct Authority issued guidelines that stated any PPI commission over 50 percent is unfair. Even if consumers were aware that they had purchased the product, they can complain based on the commission level.
While the industry standard has awarded commission compensation above the 50 percent deemed fair, a recent case changed this.
The landmark case, known as the Doran ruling, saw the judge award the claimant the entire commission. This has set a new precedent for cases. We are urging people to get in touch. We can check the level of commission on your policy and explore the best option for you.
Since these landmark rulings we have handled thousands of PPI cases, ensuring our clients get back what they are owed. We are now focusing on delivering results for victims of the PPI mis-selling scandal and want to make sure no one is left out of pocket come 29th August.
If you are unsure how PPI was mis-sold to you, get in touch. Our legal experts can help you get the compensation you deserve.