What is Payment Protection Insurance?
Payment Protection Insurance is sold to you when you have any kind of loan (Mortgages, Secured Loans (against property), Unsecured Loans & Hire Purchase Agreements (car or other purchases). A single premium insurance policy is often added in full to any loan. The typical cost of a single premium PPI policy may increase the cost of a loan by up to 30%.
A single premium (also known as loan funded) means that you pay the full amount of the insurance up front. This is normally added to the debt, which means you end up paying interest on it for the term of the loan. Say for example, you took a loan of £5000, the insurance cost £1500, the total amount borrowed is £6500 and this is what you pay interest on. Most policies have a term of 5 years or less. However, if the term of the loan is longer, you will still be paying interest even when the policy is no longer covering you.
Are there any other names for Payment Protection Insurance?
Yes. Payment Protection Insurance has many different names including:
- Accident Sickness and Unemployment Insurance (ASU)
- Loan Protection
- Card Protection
- Gold, Silver or Bronze Cover (normally provided with Northern Rock and HBOS loans)
- Loan Care
Why should I use real:life to make a claim when I can do this myself?
- Personal service
- Free claims review
- Expert guidance
- Simple claims process
- Easy to follow, stress free application process
- Open and transparent fees and charges
- No upfront fee
Will this claim affect my relationship with my loan company?
No. The Financial Services Authority does not allow any company to disadvantage a customer because they’ve made a complaint.
What information do I need to provide you with?
All we need from you are the key details that the Claim Pack requires, it is very straight forward to complete. Once we initiate your complaint we can obtain any further information we may need to build the strongest case to maximise your compensation.
Can I still complain about the mis-sale of PPI even if I’ve made a successful claim on the insurance?
Yes. We will assess your case on its own merit once the pack is returned. Please provide a summary of the claim and any payout that you have received.
Can I claim compensation even if my loan is paid off?
Yes. If you have had previous loans that you wish to claim on please call us for further application forms on 01249 822226.
How long will a case take to settle?
Credit Card charges take approx 12 weeks from start to settlement and PPI’s can take anything from 6 weeks to 18 months (if they go to the FOS then they could take up to 18 months). Typically a credit card case takes around 16 weeks and a PPI 9 months. A mis-sold loan case can take 12 months and Mis-sold Investment Bonds usually settles in around 4-6 months. HOWEVER – each case is judged on its own merit so these timescales should be used as a guide only.
What do real:life charge the client for credit card, PPI and Mis-sold loan claims?
We operate on a strictly NO WIN, NO FEE basis. Our fee is 25% (exclusive of VAT) of the settlement value.
Do Real:life charge any upfront fees?
No
If a credit card, PPI or mis-sold loan case goes through to the panel of solicitors, is there an additional fee?
No. The only fee you will pay is 25% of your settlement value plus VAT
What happens if a lender fails to respond?
If after 10 weeks from the start of the claim the lender fails to reply or will not provide the relevant information, the case is passed onto the Financial Ombudsman. If the claim is going through a solicitor, the lender will have to disclose information through the court.
What if on a joint name policy, one of them is now deceased, can the client still claim?
If the client has power of attorney over the deceased client, the claim can still be processed. However, the client must have proof of the power of attorney.
Can a client make a claim if the policy is in joint names but the clients have split up?
Unfortunately, where a policy is in joint names, both signatures are required.
Debt Solutions:
If I already have an IVA through another company, can I switch to you?
No. Your IVA is binding for the length of your contract.
I am in Debt Management already. What do you do that is different?
We can look at alternative solutions for you that do not involve hefty management fees. We would also be looking to have a percentage of your debt written off rather than keeping you in Debt Management for years and years.
Can I still claim back PPI and charges if I am in Debt Management?
This is not a straightforward answer. One of our advisors will need to ask you some more questions to assess whether it is in your best interests to make a claim. This will depend on the level of your arrears and the length of time you have been paying the loan.
Will entering into a debt solution affect my credit rating?
Entering a debt solution will affect your credit rating in the short term and might affect it in the medium-to-long term. In the case of an IVA or Trust Deed, your credit rating will be affected for 6 years.
Personal Injury:
If my accident happened at work and I make a claim against them, can they dismiss me?
It is not legally justifiable for your employer to dismiss you for making an accident claim. It could amount to unfair dismissal. Also it’s important to remember that your employer is required by law to take out insurance cover against staff accidents. This means that your employer’s insurance company will pay your compensation, and not your employer.
How do I know if I am eligible to make a compensation claim?
You will be eligible if you have suffered an injury – physical or psychological – which was caused by someone who should have been taking reasonable care for your safety but failed to – for example your employer, a fellow workmate or another driver.
Will I have to pay a fee if I win my claim?
If your accident claim is successful and you’re awarded damages, the other side’s insurance company will normally pay all your solicitor’s costs in addition to the damages, which means that you pay nothing. There are some exceptions but your solicitor will be able to explain this fully to you before your claim starts. You will receive 100% of any compensation awarded to you unless there are any exceptions.
Where do I send the completed application forms?
Real Life Services Ltd
6 Harrier Close
Calne
Wiltshire
SN11 9UT