If you are one of the many people to have received a loan or credit card from American Express within the last 10 years, then it is possible that you may also have been sold Payment Protection Insurance.
Sold correctly, PPI is a specialist insurance designed to ensure a consumer can meet their loan or credit card payments if they are unable to work because of accident, sickness or unemployment.
Unfortunately, PPI was often mis-sold to borrowers that neither wanted or needed it, as well as those that couldn’t have claimed on it because of exclusion clauses.
Grounds on Which Loan or Credit Card PPI May Have Been Mis-Sold By American Express
Lots of people took out PPI cover with their loan or credit cards believing that it boosted their likelihood of being accepted, or that the policy was a necessity. There are a number of ways in which PPI may have been mis-sold:
- Quite simply, did you know you American Express had included PPI with the loan or credit card? If you have it and the sales staff never made you aware of this, it may have been mis-sold to you.
- If you were unemployed, retired or a student, and you were advised by American Express to take out PPI, you may have been mis-sold the cover because it might not have been possible for you to ever claim on it.
- Did American Express check if your employer provides full sick pay? If you have this cover with your employer there was no need for you to have PPI as you would not struggle meeting your card payments.
- Did you already have PPI insurance in place? If so, there was no need for you to have a new policy.
- Did you feel compelled to have PPI by American Express to boost your chances of being accepted for the loan or credit card? If so, you may have been mis-sold. PPI is an optional extra that should have no bearing on your chances of obtaining a loan or credit card.
- Was everything involved with the PPI explained properly to you? If you did not receive a full cost breakdown, or American Express failed to explain the exclusions to you, you may have been mis-sold.
If the answer to any of these questions is no then you were possibly mis-sold your policy and could make a claim to get back any money that is rightfully yours.
How Can I Make a Claim Against American Express?
If you think you have a claim against any of the companies that come under the American Express Group for the mis-selling of PPI, you will need to provide as much information about the policy you had. The following information will help the American Express Group to process your claim:
- PPI account policy numbers;
- The dates of when you took the policy out and how long you had it;
- How the policy was sold to you;
- Your employment status when the policy was sold;
- If you had any savings or other insurances in place at the time of taking out the policy;
- The reason for taking out the finance and how much you paid off.
What are the Benefits of Using PPICheck.com?
There are benefits in using a company such as ours to make your PPI claim as the entire process is taken care by our case workers through our main brand Money Management Team Ltd.
We offer a free PPI check service to establish if you were sold PPI any financial products. The purpose of the check is to find out how many of your accounts have/had PPI. By going through this process other cases may come to light that you may have forgotten about.
If the checks reveal any PPI present on any of your accounts, you will be advised of your options on how to recover any PPI charges. Should you decide to proceed with PPIClaims.com we will require you to sign and return the relevant paperwork as soon as possible to begin your claims.
If your claim is rejected by the American Express Group, we will refer your claim to the FOS at no extra cost. The no-win, no-fee promise still stands.
How Do I Start my American Express PPI Claim With PPIClaims.com?
We’d like to discuss the details of your case with you, so your complaint can be lodged with American Express on your behalf as quickly as possible.
- Start your Free PPI check process by using our online form. Completing the required information will help to establish if you have held a policy with American Express; or
- Complete our online claim form to start your claim.
What are High Commission Levels?
Insurance providers paid banks and other lenders a commission for every PPI policy sold. The greater the number of policies sold, the more commission that is earned by the seller.
High-levels of commission is when you, the customer, has paid more than half of what you’ve paid for the PPI policy.
The FCA introduced new rules in March 2017 after a Supreme Court ruling in the case of Plevin v Paragon Personal Finance March 2017, which outlines how PPI commission complaints are to be dealt with.
The rule states that if the commission is over 50% of the price of the PPI, the claimant is entitled to the difference back plus interest.
Since the Plevin case, customers could complain about the level of commission paid for, that was not previously disclosed when the policy was sold to them. If the commission was high you may be entitled to compensation regardless of if you were mis-sold the PPI or not.
However, another case, Doran v Paragon Personal Finance June 2018, was decided by a District Judge in a County Court. He awarded the claimants all their high commission payments back plus interest.
The case of Doran does not set a precedent, like Plevin case does, as it was decided in a lower court and may yet be appealed by Paragon Personal Finance.
Customers who have already been successful in their claims for mis-selling cannot claim under the Plevin rules. This will still apply after the recent Doran case. Lenders will only consider claims for undisclosed commission if the customer has been rejected for a mis-sale.
If you feel that you have paid high commission for a PPI policy, you may be entitled to compensation, please complete our online PPI High Commission Check Form.
How Can the Plevin Ruling Affect my Case?
If you’ve already claimed and received a pay out, you cannot claim again.
However, if you had PPI in the past you may not have been mis-sold the policy, but you may still be due a pay-out. Banks now need to take into consideration the Plevin rules which means a previously rejected claim could be successful.
If your mis-sold PPI claim was previously rejected, you may be able to complain about the commission if:
- The PPI policy was sold with the credit arrangement on or after 6 April 2007;
- The PPI policy was sold with the credit arrangement before 6 April 2007 and was still running on or after 6 April 2008;
- 50% or more of your PPI premium was pure commission for the lender which was unknown to you. The extra paid may be refunded to you.
Next of Kin Mis-sold PPI Claims
An area of mis-sold PPI that is often overlooked because many people do not know about it is claiming on behalf of a deceased spouse or other family member who has passed away. For example, if you knew your spouse was paying for PPI before they passed away and you have concerns if it was mis-sold, you should find out as you may be entitled to claim it back.
Each month a sum of money was paid for a PPI policy that covered the policyholder should they repayments become unaffordable because of illness, accident, redundancy or death.
The PPI policy would have been sold by a bank, building society or other financial provider such as an insurance company or broker.
There have been many cases of banks, lenders and other providers selling PPI to customers who would never be able to claim on it.
The are several situations that could apply to your spouse or family member that would make them ineligible for PPI. These include:
- Having a pre-existing medical condition or if someone was;
- Being self-employed or retired at the time of taking out the cover;
- Public sector workers, civil service workers and those in other similar employment may have protection through their employment contracts, so did not require PPI;
- Some customers were not aware that they had PPI as it was added on with their consent or knowledge;
- Customers being led to believe the PPI cover was compulsory when it was optional, indicating that they didn’t understand what the cover was for.
If you, as an executor, personal representative, or next of kin know or suspect that any of the above situations applied to your late spouse or family member, look further into it as there is a strong possibility that the PPI was mis-sold.
Here’s what you need to do:
- Establish if your spouse or family member was paying for PPI on a credit card, loan or mortgage.
- Try and work out if the PPI was mis-sold based on the situations described above.
- Decide how you want to pursue the claim: yourself or by using PPIClaims.co.uk. By using PPIClaims.co.uk we do all the hard work, so you don’t have to.
If you think there may be PPI on any loans or credit agreements that were take out by a deceased spouse or family member it is worth getting a FREE PPI check done to know for sure.
How Much Could I Claim Back From American Express?
There are several factors that will determine how much compensation you can claim.
It can depend on the number of accounts you have. If you have more than one account which has had PPI added to it, you will have made more than one payment for PPI each month. Together these amounts will be the basis for what you may be entitled to receive.
If you have had several different credit card accounts, these may have had PPI policies attached to them with the monthly premiums being calculated as a percentage of the amount outstanding.
You may be able to claim a substantial amount in PPI compensation, especially if your credit card balance was close to the limit.
How Long Do I Have to Lodge my Mis-selling Claim With American Express?
The FCA has set a deadline of 29 August 2019 for all mis-sold PPI claims to be submitted by.
If you do not put your claim in before this time you will not be able to claim.