Brian got a shock £18k PPI payout on loans he’d taken in the past — here’s how to check if you’re owed compensation too
After hearing about the PPI claim deadline, Brian Goody was spurred into using the free online claim tool operated by the Which? consumer group — and you can too
BRIAN GOODY had no idea if he was due any PPI compensation on old bank loans taken out in the Eighties – until his bank refunded him £18,000 out of the blue.
The former bookkeeper, 71, had taken out six bank loans with Lloyds to make home improvements, move house and pay off credit cards, but he couldn’t remember much about them.
Certainly, he had absolutely no recollection of being sold Payment Protection Insurance.
These type of policies were flogged alongside credit cards, overdrafts, loans, catalogue debts and mortgages from the early Eighties until 2011. If someone’s income fell because they lost their job or if they were ill, the policies were supposed to repay borrowings.
The banking industry began aggressively selling PPI when they realised it made so much money.
But this lead to it being mis-sold. For example, customers were signed up without their knowledge — which is what is thought to have happened to Brian.
Another common mis-selling tactic was for banks to make out that the insurance was essential, or to push it on people who would not be eligible to claim, such as the self-employed.
This affected a lot of builders and tradespeople.
Providers have since been forced to refund issue refunds — and victims have until August 29 this year to claim.
After hearing about the deadline, Brian was spurred into using the free online claim tool operated by the Which? consumer group.
At first, it didn’t look promising. Lloyds sent him a 12-page, ten-part questionnaire asking him to complete a claim for each policy that he’d held.
‘I felt dumbstruck and over the moon’
Brian, of Coggeshall, Essex, says: “I didn’t know what policies, if any, I had taken out, so I was unable to fully complete the forms As a result I decided to forget about claiming and did not reply.”
So he was amazed when, a month later, he was sent a letter from Lloyds Bank offering him a £18,346.67 refund on four of the loans.
The bank continued with the claim and found out the details. Brian says: “I was surprised when I read it and found that of six loans I had with them in the past, they were going to pay me compensation on four.
“I was stunned to learn the total. I felt dumbstruck and over the moon. People really need to know how much they can get back.”
Single Brian now intends to use his windfall to replace the bathroom and kitchen in his retirement flat.
Another man who used the same tool got a £9,000 payout, which he used to pay for his wedding day, according to Which?.
The man told them: “Originally I had claimed for a loan I had when I was 18. Turns out I didn’t have PPI on that.
“But through using the PPI tool, the company came back to me and said I’d had it on a credit card — which I had no idea about. I got back £9,000.”
RETIREMENT TAX HIT FOR ONE MILLION
NEARLY a million over-55s have taken cash from pensions — unaware they now face tax demands.
They got £23billion un- der relaxed 2015-18 rules.
But tax relief limits fell from £40,000 to £4,000.
The Just Group pension firm said: “A significant number won’t have a clue about the consequences.”
MOST READ IN MONEY
Which? said a lack of paperwork was no reason not to claim on credit products like loans, mortgages, credit cards and store cards.
It says people should ask the bank to look at any products they might have had, rather than be too specific. That way the firm will have a thorough look.
From January to November last year, banks paid £362.7million of compensation each month on average, according to the Financial Conduct Authority.
More than 200,000 consumers have used the free Which? PPI tool to start their claim, and the average compensation payout last year was £2,500.
Eleanor Snow, Which? consumer rights editor, says: “The deadline for PPI claims is now just a few months away and, according to the latest estimates, there are still millions of pounds in compensation sitting unclaimed.
“We’re urging people to make a claim — even if they’re not sure whether they have been mis-sold PPI in the past.”
- GO TO:
HOW TO MAKE A CLAIM IN SECONDS
USING the Which? tool takes a matter of minutes – and it is free.
Don’t use claims firms, as they could take up to a third of your compo.
Go to .
You start by naming the provider you want to claim against.If you can’t remember the name of the firm, check your credit file – which you can do free of charge.
Make sure you select all that apply or select “multiple financial products” to ensure your claim is investigated fully.
You will be asked what type of product you had – a mortgage, for example, credit card or loan. You will also be asked what other products you held.
You need to input other details including your name, your date of birth, phone number, past physical addresses and your email address.
Your claim will then be sent to the provider, which should contact you directly.
You can also claim on behalf of a deceased relative.
If there is a will and a grant of probate has been obtained, all the executors named are authorised by law to bring a PPI complaint.
However, ALL the executors would need to sign the relevant forms to make a claim.