What Is Catalogue PPI?
It is well known that Payment protection insurance (PPI) was added to and sold with credit cards and loans. However, it was also added to many catalogue and mail order accounts, sometimes without the customers consent or knowledge.
The purpose of the PPI was to cover repayments on the account if the customer’s financial situation changed and they could no longer meet the repayments due to illness, accident or unemployment.
What wouldn’t have been explained to customers is the insurance only pays out for a maximum of 12 months, but the number of exclusions could be a bar to claiming on the policy regardless of the how long you were paying the premiums.
Were you one of the many millions of people who had a catalogue from the 1980s to the early 2000’s? If so, you may have been mis-sold.
Did You Have A Catalogue Account?
If you have a reasonable belief that PPI may have been attached to your catalogue, before making a claim for mis-sold PPI, you could find out which of your catalogues had PPI attached first through a PPI check (which is provided as part of the claims offered).
Make sure that you read the small print of the account terms and conditions carefully, as PPI was often included without being brought to the customer’s attention. It was also often added as an afterthought, and you may have received a letter telling you that the product had been added to account.
If you notice that your account had PPI attached to it, think back to when it was sold to you. Can you remember when or why you agreed to it? Were you informed that it would be added?
Don’t Recall Which Catalogues You Used?
Over time people tend to use a variety of catalogues and mail order companies. Trying to remember the different ones can be difficult, but it doesn’t mean you can’t still check for mis-sold PPI or put a claim in.
If you still have any paperwork or documentation, that can help to establish if any PPI was added to your account. If this isn’t the case, we can help to identify previous lenders.
Catalogue Retailers - Who Owns Who?
Many of the most popular UK catalogue and mail order providers have been found to have added PPI to customer accounts.
If you took had a catalogue account from the 1980s to 2000s, you may be entitled to claim PPI compensation. Please see the list below of catalogue companies who sold and added PPI on to:
Shop Direct has the largest mail order and catalogues brands portfolio in the UK. Therefore, they are also responsible for PPI sales and complaints for the following well-known names:
- Additions Direct
- Great Universal
- Marshall Ward
JD Williams Catalogue:
JD Williams is owned by the N Brown Group PLC and forms part of their ‘power brands’ along with Jacamo and Simply Be.
N Brown Group have a secondary set of brands that cater for more traditional tastes:
- Ambrose Wilson
- Fashion World
- High & Mighty
- House of Bath
- Premier Man
- Simply Be
Also, part of the Otto Group, Grattan are responsible for PPI sales and complaints for the following well-known names:
- Grattan Direct
- Look Again
- Look Again Direct
- New Look Again
Part of the Otto Group, Freemans are responsible for PPI sales and complaints for the following well-known names:
- Bon Prix
- Clearance 365
- Freemans Direct
- Swimwear 365
- Witt Wieden
Please note that this is not an exhaustive list of catalogue and mail order providers.
What are Catalogue PPI Charges & Costs?
Catalogue PPI is usually charged for on a monthly basis. The charge for PPI is made up of three components to make up the total cost. The three components are:
- Percentage – the PPI premium is worked out based on how much you have outstanding on your catalogue account each month. It is known that the amount charged by catalogue lenders is much higher than credit card and store card providers. A typical charge can be up to £2.00 for PPI on every £100 that is outstanding each month on a catalogue account, which can equate to 15% per month.
- Interest – once the monthly premium has been calculated, interest is then added to the monthly premium. The rate of interest will be same that the company charge for outstanding balances.
- Charges – if a catalogue account has PPI charges and a payment is missed, the penalty charges are far higher than normal, leaving the account holder in a worse debt position than before.
Despite paying or being charged the monthly PPI premium, customers were not made aware that amount covered was only 10% of the outstanding balance.
How Was Catalogue PPI Was Mis-sold?
PPI was such a profitable product for banks and financial services providers that customers were being sold it regardless of if PPI was needed, wanted, or suitable. In addition to this many people who had it didn’t know they had it, because it was added on their accounts without the customer’s consent or knowledge.
An investigation by the Citizens Advice Bureau and by the FSA uncovered the wider problem of selling PPI mis-selling. Proper checks had not been carried out to establish if the customer was eligible for PPI in the first place and if they understood if the products was right for them.
There are several ways in which PPI may have been mis-sold, aside from if you simply had no knowledge of having PPI attached to your loan:
- You may have felt pressured into getting PPI, with the sales person effectively forcing the deal onto you. If you didn’t need the policy, then you may have been mis-sold.
- If you were under the impression PPI was required in order to be successful in your attempts to secure a loan, then you may have been mis-sold. PPI has no bearing on the likelihood of a lender deciding whether to grant you a loan, and it is an optional product.
- Did you have the costs explained to you in detail? The seller should have provided you with a clear breakdown of the separate PPI costs, rather than including them within the loan costs. Failing to make clear the PPI was a separate cost could mean you were mis-sold.
- Were you made aware of all the exclusions and terms of the policy? If you did not realise that having a pre-existing medical condition, for example, could result in you not receiving a pay out, you may have been mis-sold.
- Did the seller discuss your employment status with you beforehand? If you were a student, a part-time worker or unemployed at the time you took out the loan, you may not have been able to make a claim anyway, so you could have been mis-sold.
How Much Will I Get If My Catalogue PPI Claim is Upheld?
If your catalogue PPI claim is successful, the amount you are compensated by will consider the following:
- how much PPI you paid per month;
- the amount of interest added;
- any charges for missed payments or arrears that could have affected the cost of the PPI.
When the above facts have been assessed and the amount to be refunded has been calculated, an additional sum for statutory interest at 8% should be added. This will make up the total amount payable for mis-sold PPI.
How to Claim PPI Compensation On Catalogue Accounts?
Since the scandal first broke several years ago, thousands of people have claimed back money spent on insurance policies that they didn’t need, want or, in some cases, know about.
However, a surprising amount of people are not aware that PPI was added to products other than loans and mortgages.
If you think you may have been mis-sold PPI on your catalogue or mail order account get in touch with the relevant company first. They will must acknowledge your complaint and send you a written response within 8 weeks having completed their investigations.
Sometimes complaints can be rejected. If this happens or you haven’t received a response in the 8 weeks timeframe you can contact the Financial Ombudsman Service (FOS) for a decision.
How Long Do I have to Make a Catalogue PPI Claim?
The FCA has set a deadline of 29 August 2019 by when all claims for mis-sold PPI need to be submitted.
This means that your mis-sold catalogue PPI claim must be submitted before this date. New claims cannot be lodged after this date.
There may also be other time limits to considers, so act now and put in your catalogue PPI complaint as soon as possible.
Who Sold Catalogue PPI?
The following catalogue companies may have sold PPI to you. Please note this is not an exhaustive list. If you have a PPI complaint or want to check if you were mis-sold PPI by the retailer, please complete our simple FREE PPI Check form above