Thousands missing out on PPI payouts as most people unaware you can claim for dead relatives
A recent survey revealed 90 per cent of those questioned were unaware that it was the case
THOUSANDS of people could be missing out on PPI payouts as most people are unaware you can claim for dead relatives.
Loved ones can legally make a claim if there is a will and they are named as a personal representative.
As a result Britain’s banks might have to fork out more on top of the £30bn already paid out for PPI's.
Where there is no will a grant of letters of administration is required, reports.
Watchdog Which? has said making a claim for loved ones who have died has always been allowed.
But 90 per cent of those surveyed in a recent poll were unaware it was the case.
Products sold with PPI
You might have had PPI if you’ve taken out or used loan or credit products including:
- Loans
- Credit cards
- Store cards
- Overdrafts
- Mortgages
- Home shopping accounts
- Car financing
The PPI scandal has led to the largest compensation exercise in UK financial history.
Gareth Shaw, Which? Money expert, said.“It’s easy to use a free online tool or to contact your bank directly, even when claiming on behalf of a deceased person.
“We’ve heard from people who have successfully claimed in this way – and who therefore got to keep every penny of the compensation awarded.”
One Which? member said: “After my dad died I was going through his paperwork and realised he had been paying PPI for years and either should have made a claim or not had it.”
Another said: “I recently used the PPI reclaim tool to see whether I was due a refund in relation to my late husband’s financial affairs [he passed away in 2014].
“He had held a mortgage and a loan with NatWest. Without having to provide any further documentation, account numbers etc, I have today received two offers totalling over £13,000. Incredible! And it took no effort whatsoever.”
The deadline to file a complaint about PPI is next year, on 29 August 2019.
PPI was created to cover debt repayments in circumstances where you couldn't make the payments yourself, for example if you were made redundant or couldn’t work due to injury or illness.
The FCA estimate that as many as 64 million PPI policies have been sold in the UK and so far over 12 million people have pocked compensation.
Rather than pay to use a third party service or claim management firm, you can file a PPI claim yourself.
How to make a PPI claim
Think you've got PPI? Then follow these steps.
1. Find out if you have a PPI policy - Check your loan or credit documentation to see if it refers to anything like "payment cover","loan protection" or "ASU (accident, sickness and unemployment) insurance."
If you've thrown away your documents, you can check you credit file which will list any credit agreements you have had in the last six years - and you can ask your lender for a copy of your documentation and terms and conditions too.
2. DON'T use a Claims Managment Firm - Claims firms will promise to do everything for you - but will take a massive slice of your cash if your claim is successful. MSE, Which? and watchdog, the Financial Conduct Authority, all have template letters and tools you can use to submit your claim for free.
The firm must respond to you within eight weeks of making your claim.
3. You might be able to make a new claim even if you've been rejected - Thanks to a court ruling known as Plevin, customers can get their money back if the bank didn't declare at least 50 per cent of the policy was in commission.
4. Act quickly - The deadline for making a claim is August 2019, so make sure you get your claim into the company you're complaining too well before then.
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