What is PPI?
PPI is an insurance sold alongside loans, credit cards, mortgages, storecards, overdrafts and catalogues. It is designed to cover you if you are out of work due to accident, sickness or unemployment, however, many of these policies have been mis-sold to customers.
How do I know if I have it?
You may have some original paperwork for the account with the PPI displayed. However, many of our clients haven’t keep their paperwork or the PPI may have been added without their knowledge. Therefore, as part of the claims process, we carry out a free PPI check on your behalf and find out if you have paid for any PPI on any accounts that you hold with them.
How long does the process take?
The first part of the process is to carry out a free PPI check on your behalf, this process can take up to 6 weeks from the date this request for information is sent to your lender.
The second stage of the process is to submit a claim on your behalf, stating the reasons why we feel the PPI has been mis-sold. The lender will then have 4 weeks to acknowledge that they have received the claim and a further 8 weeks from this date to issue a final response. The whole process can take up to 18 weeks.
Will my claim affect my relationship with my lender?
Lenders have recognised many of these policies were not right for customers and so reclaiming your PPI will not place any sort of ‘black mark’ on your relationship with the lender.
What happens if my complaint is upheld?
Fantastic! If your lender advises that they are upholding your case, an offer will be made to you to settle your complaint.
What happens if I receive an offer?
Let us know as soon as you can. We need to confirm what your lender’s offer is covering; particularly if they are investigating more than one account for you. In some cases there can also be discrepancies with offers made, so we may need to challenge the lender further in cases like this.
What happens if my case Is rejected?
If we believe that a rejection is unfounded, we will assess the case at hand to determine if there is reasonable need to refer it to the FOS to appeal it, with the aim of getting the decision overturned.
Who are the Financial Ombudsman and what do they do?
FOS is an impartial adjudicator who review cases rejected by lenders to assess if they are unfair and justify being overturned. FOS investigations are free, however due to the amount of complaints they receive they are not bound by any timescales, meaning decisions can take 18 months or more. If they do think the decision is unfair and overturn it, they will request that the lender refunds you the PPI premiums and interest you paid.
Why has my case been sent to the Financial Services Compensation Scheme (FSCS)?
There are occasions where lenders responsible for mis-selling PPI are no longer in business and, as such, cannot be claimed against. The FSCS is a ‘fund of last resort’ – a government body set up to pay compensation where the responsible company has ceased trading. The body only has jurisdiction on sales made after January 14th 2005 and can investigate claims in the same way as a lender would, paying compensation where they find a policy has been mis-sold.
What do you class as proof of PPI?
Loan documents showing PPI was added to your agreement, credit card or bank statements showing payments taken for PPI premiums each month. You could also have a final statement letter from your lender showing PPI details.
Why have you chased me for information?
In many instances, lenders may destroy relevant information relating to your claim after six years of the account being inactive, which we may need to ask you for. Additionally, lenders can request further information from you, via us, to assist them in reaching a final decision on your case.
What will I be claiming for?
For any PPI claims made through Magnum Claims, we aim to recover:
100% of any premiums that you have paid
Any interest paid on those premiums
Where possible a further 8% in statutory interest
How would I receive my PPI compensation?
This depends on your circumstances as the way your refund would be paid to you depends upon whether your loan is still active or not.
What if I’m still paying my loan?
If you are still paying your loan back, you would receive a lump sum, which should consist of any payments made to date on the policy. What’s more, the remaining loan payments will then be reduced accordingly, meaning your monthly repayments will be lower!
I’ve paid off my loan or credit card, can I still claim?
Yes you can! If you have paid off your loan, you would receive your PPI refund on any successful case in a lump sum, most likely in the form of a cheque from the lender.
This is a simple process, why should I pay you?
By agreeing to our terms and conditions at the start of the process you agreed to pay our fees in the event of a successful claim. If we have applied and/or appealed for the reimbursement of your PPI payments on your behalf and were successful, then we are owed the fees outlined in these terms and conditions.
My loan is ongoing but I’ve fallen into arrears – what happens now?
If you have fallen into arrears with your payments your lender may off-set any payments due to you against the amount you owe them. If the amount you owe is more than the redress they are prepared to pay you may end up with no cash payment at all, but your fees to Magnum Claims will still be payable for the total redress offered to you by your lender.
Why am I paying VAT?
Magnum Claims does not benefit from charging VAT. It is a government tax and because Magnum Claims is a VAT registered company we are required to pass on the VAT we collect to the government.