People could get PPI compensation by claiming on behalf of dead relatives

Thousands of people could be able to claim PPI compensation on behalf of their dead relatives, it has been revealed.

Millions of people were mis-sold Payment Protection Insurance between 1990 and 2010. 

It was designed to cover people should they not be able to pay their debts in the event of them losing their job, becoming ill or disabled. 

It has been revealed thousands of people could be able to claim PPI compensation on behalf of their dead relatives. File image used 

But £31.9billion has been paid out since then after lenders put pressure on people to buy policies – even if they couldn’t benefit. 

With almost a year to the day left until the PPI compensation deadline, consumer group Which? has pointed out people can claim on behalf of deceased family members.

The Express reports that a survey showed 90 per cent of people are unaware they can get compensation owed to relatives who have died.

Experts have told The Express the banks have kept the right to compensation quiet so they wouldn't be flooded with claims. File image used 

Experts have told The Express the banks have kept the right to compensation quiet so they wouldn’t be flooded with claims. File image used 

Experts tell the newspaper the banks have kept the right to compensation quiet so they wouldn’t be flooded with claims.

HOW CAN I CLAIM BACK MONEY FOR PPI?  

The PPI scandal has seen firms pay back £31.9 billion so far since January 2011 to customers complaining about policies.

Here is how the scandal erupted and how you can make a claim:

Why did PPI become controversial?

PPI (payment protection insurance) was designed to help people continue making payments in certain circumstances, such as if they lost their job or had an accident. It was often added to financial agreements such as loans, credit cards and mortgages, particularly from the 1990s to around 2010.

It became controversial because it had been widely mis-sold – it was unsuitable for some people, people did not realise it was optional or, in some cases, they did not even know they had a policy.

It is the biggest mis-selling scandal the Financial Ombudsman Service (FOS) has ever seen.

What else might be relevant if I’m deciding whether to complain?

New rules mean that, crucially, even if you do not think you were mis-sold a policy, you may be able to complain about commission earned by a provider as a reward for the sale of PPI.

Banks and other providers were often paid commission by the insurer, as a reward for the sale of PPI. The money for this commission would come out of the payments you made for the policy.

You do not need to have prior knowledge of how much commission was paid for your PPI – it is unlikely you would have been told when the policy was sold to you in any case.

You can complain about this even if you had a previous complaint about mis-selling of PPI rejected.

How can I complain?

Some people have used claims management firms, which take a chunk of any payout – but people can make claims themselves free of charge.

There is plenty of help available to make a claim yourself, from consumer champions such as MoneySavingExpert.com, Citizens Advice and Which? on their websites.

The Financial Conduct Authority (FCA) and the FOS also have help on their websites.

What if I’m not happy with the outcome after making a complaint to a firm?

If you have already complained to the firm and are unhappy with the outcome, you can take your case to the FOS, which resolves disputes between consumers and financial firms.

But now it has been put under the spotlight, commentators believe they will be faced with thousands of refund requests. 

Gareth Shaw, Which?’s money expert, said: ‘There’s no need to use a CMC to process your PPI claim. 

‘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.’

Which? claims people can legally claim a PPI refund if their dead relative had a will and they are named on it as a personal representative. 

If they failed to write a will, the family member will need a grant of letters administration, which can then be used to file a complaint.         

The one-year countdown to the deadline for making PPI complaints starts this week.

The exact date for PPI claims is August 29 2019.

This means people need to refer their complaint to their provider or to the Financial Ombudsman Service (FOS), which resolves disputes between consumers and financial firms, on or before 11.59pm on that date – or lose their right to have their complaint assessed.

As many as 64 million PPI policies have been sold in the UK, some stretching as far back as the 1970s.

Policies were added on to products such as personal and business loans, credit cards, store cards, mortgages, catalogue credit and other types of credit, such as car finance and hire purchase agreements for household items.

PPI was meant to help people cover repayments if they found they could not due to a sudden change in personal circumstances, for example being made redundant, having an accident or being ill.

But PPI became controversial as it was widely mis-sold, with people feeling pressured into taking it out, finding it was unsuitable for their circumstances or even finding PPI had been added without them realising it.

As it could take some people some time to get their paperwork together, and some may need to claim before the final deadline, it may be wise to act now rather than waiting until the last minute.

If people have not got their old paperwork they could ask the firm.

The Financial Conduct Authority (FCA) has a page on its website that helps people track down the details of firms – fca.org.uk/ppi/how-to-complain/search-for-provider.

While people can use claims management firms to make a complaint, they will take a chunk of any PPI payout – and people can complain themselves for free.

There are many free tools and free sources of help available to take the hassle out of complaining. 

Read more at DailyMail.co.uk