We automatically assume that reclaiming mis-sold PPI for deceased parents, grandparents and relatives may not be possible due to the passage of time. However, the truth of the matter is it is quite straight forward to make a successful claim for mis-sold PPI for someone who is deceased.
If a Payment Protection Insurance (PPI) policyholder is deceased, any money owed to them becomes part of their estate, so whoever inherits the estate is entitled to make a PPI reclaim. This can be done by an executor or any person that has been appointed to carry out their wishes after death.
Note For Executors & Personal Representatives Claiming PPI
If you are an Executor dealing with a deceased person’s estate it is advisable to check to see if the deceased person was mis-sold PPI or any credit or loan. Many Executors overlook this important task so we can help. Our PPI Claims advisors are used to looking into the financial affairs of the deceased and communicating with the banks or financial institutions that the deceased had dealings with.
As an executor or personal representative of the deceased, once youve been granted probate, it is your duty to settle all debts owed by the deceased from the estate.
In order to start the claim for someone who is deceased, it is first important to identify who the beneficiary of a successful claim will be. To do this, a certified copy of a will (if there is one) along with identification and proof of residency for each executor must be provided. An certified copy of the death certificate is also required.
The first thing youll need to do is check whether there was a PPI policy in place which will settle outstanding loans or credit card debt in the event of death, and then make a claim.
Claiming on An Existing PPI Policy
If the deceased person still has an existing policy in place, it may still be possible for an executor to make a claim as they may have been paying for PPI for years without knowing about it. So it may be worth making a claim as any refund would be a bonus that could be included in the estate value and or repay deceased's debts.
Dealing with Older Policies Where the Credit Has Been settled
Even if the credit loan has been settled you still may be eligible to recoup mis-sold policy monies on behalf of the deceased person. For example, this could be when you have gone through the deceased's financial paperwork sometime after their death and come across PPI policies which may have been inappropriate for them at the point of sale. In which case it is recommended that you seek specialist legal advice. To make a claim in such circumstances, you will need to provide a copy of the grant of probate.
What Is PPI & How Was It Mis-Sold?
PPI was designed to cover loan or credit card payments if the insured could not work, for example, if they become ill or lost their job.
Banks and lenders sold PPI to their customers without fully explaining what it covered. In the worst-case scenarios, finance providers lied to customers by telling them it was a compulsory element of their credit agreement, or they just simply added it without the borrowers’ consent. Others were mis-sold PPI without checking if it was appropriate for them. Examples include the self-employed and people with pre-existing medical conditions, where PPI would not have paid out if they had claimed.
The PPI Sales Boom
It was in the early 90's when interest rates were falling and having a big impact on profits from lending that banks started to look for new products to replace these losses.
PPI was this replacement product, banks and lenders began to sell it aggressively with all forms of credit agreements up to 2011. This included personal and business loans, mortgages, credit cards, store cards, and mail-order catalogues.
In the 1990's people respected banks and trusted them implicitly which made the selling of PPI quite easy. So if the bank said you needed it, consumers believed them and bought PPI without question.
So it is highly probable that people born as far back as the 1930s may have borrowed heavily during the later years of their lives and may have also been paying PPI with their credit agreements.
How long does a bank or lender keep records?
Under Data Protection rules, banks and lenders are obliged to keep records for a minimum of 6 years after the closure of a connection. They do, however, usually retain them for longer periods.
Under the Data Protection Act 1998, a deceased person has no rights, however, some accounts were often held jointly with someone who is is still alive. If this is the case, then the paperwork can be requested and recovered by that person. If the account was just in the name of a deceased and the paperwork can't be recovered, a claim is still possible, providing there is a strong belief or evidence that PPI had been paid for by them.
Frequently Asked Questions
What do I need to start Deceased PPI claim?
To get started useful information includes an account number and sort code, but quite often just the having the persons full name and a list of addresses are enough to find a full banking history dating back to the start of the 80s.
In order to start a claim for someone who is deceased, it is first important to identify who the beneficiary of a successful claim will be. To do this, a certified copy of a will (if there is one) along with identification and proof of residency for each executor must be provided. An extract copy of the death certificate is also required.
Things can become problematic if there is no will, but not impossible, especially if there is a surviving spouse.
A successful claim will result in the funds being paid to the next of kin or to the executors. Banks are quite good about paying out what is owed if the sums are reasonably low. However, if a claim is worth thousands of pounds, the bank concerned may look for Confirmation in Scotland or Probate in England and Wales. If this applies to you, your claim on behalf of a deceased relative should be successful.
Claiming PPI under new 'Plevin' Rules
If you have already raised a previous PPI complaint for the deceased which was not upheld, and you wish to raise a further complaint relating only to the commission charged on your PPI policy, please complete our online 'Plevin' PPI Commission Check Form.