PPI Pre-Contract Information


What can I claim for?

We will establish what financial loss you have suffered. In other words, how much would it cost to put you back into the position you would have been in, if the mis-selling had not happened. We will seek to claim this financial loss on your behalf.

How much do I have to pay?

You won't pay us anything unless we're successful in winning your claim, in which case you will need to pay us 30% (plus VAT) of the total compensation offered. If the claim is withdrawn at your request we reserve the right to charge you our reasonable costs incurred in pursuing the claim up to the point of cancellation.

How will my compensation be paid?

Compensation can be paid in a variety of ways. You may receive a cheque directly from the financial institution for the amount of compensation or it may be paid directly in to your bank account. This is usually the way if your loan, mortgage or other finance has been repaid in full, if there is a refund due when you cancel a PPI policy or if your claim relates to a Packaged Bank Account. This may also be the case if your PPI policy or mortgage was arranged by a third party/intermediary such as a financial adviser or broker. In some instances the provider may make payment directly to us as your authorised representative. In these cases, we will credit the money to our Client Account, deduct our Service Charge and make payment of the balance directly to you. If your loan, mortgage or other finance was arranged directly by the financial institution and is still in place with an outstanding balance or current overdraft, then the financial institution may have to 'restructure' your account. This means that the financial institution has to recalculate what your outstanding balance would have been if you had not been mis-sold the financial product. In this case, You will receive some compensation as a cash payment and the remainder of the compensation is 'paid' against your outstanding balance.


Example 1 - Where all of the compensation is paid as "cash" benefit.

Total Compensation £1,000
Our Service Charge (30% plus VAT) £360
Net amount of compensation paid to you as cash £640

 

Example 2 - Where some of the compensation is paid in cash and some is used to restructure future payments on your loan account. This scenario will only be used when the loan is still active.

Total Compensation (including the restructuring of your loan account) £1,000
The amount used to restructure your loan account £500
The amount offered as a cash settlement £500
Our Service Charge (30% plus VAT) which is based only on the cash you receive £180
Net amount of compensation received by you as cash (£500 less our Service Charge of £180) £320

 

How long will my claim take?

The financial institution that arranged your financial product is required under the financial regulator’s rules (the Financial Conduct Authority) to investigate and resolve complaints within 8 weeks of receiving them. However, your claim will take longer if we have to refer it to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). In the case of FOS, this could take up to 2 years. We will be doing all we can to get your claim completed as soon as possible.

Can I claim if I have arrears, am in a debt management plan, an IVA, a Trust Deed, or have gone through bankruptcy or sequestration?

If you have arrears on your finance then the financial institution can use the compensation to pay those arrears before making any payment to you. This may result in you not receiving any cash benefit back. We will always talk to you about your situation to establish if it is in your best interests to pursue a claim given your financial situation. You will need to tell us about any arrears or changes in your circumstances which may affect how your compensation is paid.

 

Example 3 - Where some of the compensation is offset against the outstanding finance

Total Compensation £1,000
The amount used to repay outstanding finance £500
The amount offered as a cash settlement £500
Our Service Charge (30% plus VAT) which is based only on the total compensation £360
Net amount of compensation received by you as cash (£500 less our Service Charge of £360) £140

If you are in an IVA or have been made bankrupt you will need to speak to your Insolvency Practitioner or the Official Receiver before making a claim.

 

Can I change my mind?

Yes. If you change your mind within 14 days of signing the Terms and Conditions we will cease processing your claim and you will have nothing to pay. You can also change your mind after the initial cancellation period but we are entitled to charge you for our reasonable costs incurred in progressing your claim up to the time of cancellation. If you cancel your instructions after an offer has been made then we are entitled to charge you our full Service Charge.

Will I have to go to Court?

We will help you with your claim right up to and including the FOS or FSCS, as appropriate. We will not represent you in taking legal action in respect of a claim for mis-sold PPI as we believe that this is not the best route to seek compensation. If you wish to take legal action you will have to arrange this separately and pay the costs yourself.

Can I take alternative steps to pursue my claim?

You can of course pursue the claim yourself without cost. This can be directly with the financial institution and, ultimately, through the FOS. Certain claims may fall under the scope of the FSCS which you can access directly. By using Financial Recovery Solutions you can be confident we will be using all of our expert knowledge to fight to reclaim what is rightly yours and, importantly, ensure that the compensation you receive is made in line with the regulator's guidelines.

 

Updated October 2016