Deadline looms on claiming PPI for dead relatives

ments showing PPI in my late husband’s paperwork. Six weeks later, the bank wrote back saying they would be paying me £33,000! Thank you!”

And Mands tweeted: “@MartinSLewis just been offered £2k for my deceased husband’s PPI. Thanks for your article. He died 13 yrs ago!”

WAS IT MIS-SOLD?

PPI was sold as cover for a debt’s repayments in the event someone lost their job or got sick – in itself not a bad concept. But most were outrageously expensive and only paid out for a year. Some even cost more than the max they could pay out.

The biggest issue was that lenders failed in their duty to check if these policies were suitable and wanted.

Common PPI mis-selling included lying that it was compulsory or that it would result in a cheaper debt; adding it The Plevin rule means that just having PPI means most were mis-sold. Shockingly, the AVERAGE commission insurers bunged the banks for flogging their PPI was 67%.

In 2017, the Plevin rule (based on a court case taken by Susan Plevin) came into play. It states if the commission was over 50% and you weren’t told it (and I’ve never met anyone who was), you’re due the amount over that back.

This means millions who’ve had PPI, even if it was sold right in every other way, are due something back – though it only applies to policies active in or after 2008.

So you could open a Plevin case with the lender just about the commission. If you think you were mis-sold in another way as well, then do a normal mis-selling case. without permission; selling it when it was inappropriate, e.g. “unemployment cover” for the self-employed; or not asking about pre-existing conditions that could invalidate it.

Tell the lender as many details as you know about the deceased’s circumstances at the time they got the policy – employment, sick pay entitlement, additional cover they had and the state of their health.

Better still, if someone else was present at the time of the sale, they can tell what they remember (especially where the credit was taken by more than one person). This doesn’t have to be done in highfalutin language.

If there’s no one with direct knowledge then, as mis-selling was systemic, they’ll look at whether at that time and place others in similar positions were being mis-sold too.

And remember Plevin (see above) means for many even just having PPI means you’re owed.

HOW DO YOU CLAIM?

In most cases (such as with HSBC, Lloyds and Barclays) you put in the PPI reclaim for your deceased relative first, in the normal way.

The lender will ask for proof that you are entitled to make the claim.

A few (eg Santander) usually ask for proof first, so have everything ready.

After that the process is pretty straightforward. Use my free tool at moneysavingexpert.com/ppi . There’s also good free help at which.co.uk and, if you’re stuck, call the regulator the FCA’s free helpline on 0800 101 8800.

And remember the key rule: If the lender says no, that doesn’t mean it’s over. If you believe it was mis-sold, then escalate it to the free financialombudsman.org.uk to adjudicate.