What Is Payment Protection Insurance?
Payment Protection Insurance (PPI) isn’t as difficult to understand as some would have you believe. It was an optional add-on insurance policy to cover the repayments on financial products such as mortgages, loans and credit cards.
The purpose was to cover policy holders who could not work and therefore meet their monthly repayments for any of the above products due to sickness, long term injury or redundancy.
What is Halifax PPI?
PPI was a product sold daily by banks, building societies and other financial services providers to customers to ensure they could meet their monthly payments if they were ever unable to work due to accident, sickness or unemployment.
When sold in the right way PPI was a useful product and beneficial to those who had it. Unfortunately, it came to light that this wasn’t always the case and many people were sold PPI who wouldn’t be covered by it.
With the sales of PPI policies increasing, banks and other lenders realised how profitable a product it was. PPI sales were netting billions of pounds each year with very little being paid out.
This went on for many years until the Citizens Advice Bureaux conducted research into why so many policies had been sold and so little had been paid out in comparison.
High street lender Halifax, like many others, has been caught up in the PPI mis-selling scandal. They sold PPI to customers who took out credit cards, loans, overdrafts, mortgages and secured loans as well as business loans.
Many millions of customers were affected by the mis-sold PPI scandal with many already having claimed successfully for compensation from the Halifax.
If you are or have been a customer of the Halifax in the past and you think you may have had PPI with a Halifax finance product but aren't sure, get a free PPI check to know for certain.
Key Features of Halifax PPI
PPI policies are usually sold alongside loan and credit products such as mortgages, credit cards, personal loans as well as store finance and catalogue accounts to name a few.
PPI was designed to cover the repayments on any loan or credit products, when you couldn’t make them yourself due to unforeseen circumstances such as, you were made redundant or couldn’t work due to an accident, illness, disability or death.
How the policies work and the range of benefits they offer can vary slightly from policy to policy.
Brands Halifax Sold PPI Under
In addition to their own products (Halifax mortgages, loans, credit cards and overdrafts), other brands which PPI may have been sold under include Bank of Scotland (BOS).
Which Halifax Products Was PPI Sold With?
How Does a Halifax PPI Check Work?
You can use our simple and FREE PPI check service to establish if you have ever had PPI with the Halifax and any other associated brands in the group. Be assured that by using our PPI check service, your relationship with the Halifax will not be affected in any way.
You will need to provide some basic information so a Halifax PPI check can be completed. The following information is required:
- Your current address
- Your address when the account was opened (if different to your current address)
- If your name has changed since taking out a financial product from the Halifax, you will need to provide your previous names
- Your date of birth
- If any of the products were taken out with a joint account holder, you will need to supply their name. (Note: Depending on the situation, this is not compulsory ie if the person is deceased. Compensation payouts for joint accounts are paid on a shared basis.)
Making a Halifax PPI Claim
The Halifax PPI claim process is straight forward when using our service. However you may choose to complain to the Halifax directly by letter, email or in person at a branch. The timescales for the Halifax to respond will still be the same. You should receive a decision in 8 weeks.
Halifax 'Plevin' PPI Commission Claims
If you had PPI on any Halifax finance product you may be due a refund of some of the PPI premium paid with interest. This is because commission may have been paid to the lender or broker from the PPI premium, instead of all going directly to the insurance company.
The reason came about is because of a Supreme Court ruling in the case of Plevin v Paragon Personal Finance Ltd in 2014. The facts of the case was that Plevin was sold a PPI policy but she wasn't told about the high level of commission that was passed to the broker. The judge held that because of the amount of commission paid (78.1% of the premium), constituted an unfair relationship under S10A of the Consumer Credit Act 1974.
As a result of this case the FCA set out guidelines in the Plevin Rule, which states that if more than 50% of any PPI premium is commission, the customer is entitled to compensation.
You may be eligible for a Halifax PPI commission-based claim if:
- The amount of commission was not disclosed to you;
- The amount of PPI commission was more than 50% of the premium.
Can A PPI Check Be Done Without Knowing the Lender Name?
You will need to have an idea of which lender may have sold you PPI, in order for our team to do the necessary checks.
Without the name of a lender it is impossible to know where to start. Our team cannot contact lenders on an ad hoc basis hoping they are you lender.
How Was PPI Mis-sold by Halifax?
There were several underhand sales tactics used to mis-sell PPI policies once lenders such as Halifax discovered just how profitable they were. Sales advisers were encouraged to sell PPI policies and in return they would receive a commission on the sale. PPI was sold using some of the following practices:
- Unaware – there are many cases of customers not knowing that the PPI had been added to their product. They were not only repaying their loan, but they were also paying for an insurance policy they did not know about.
- No option – it was a widespread practice for sales advisers not to tell customers that PPI was optional, that they could either opt out of having it or they could buy cover elsewhere. Some were told that the loan would not be approved if they didn’t take out the PPI.
- Already covered - sales advisers didn't check if you had cover elsewhere such as sickness and redundancy protection through your employment.
- Couldn’t ever claim – sales advisers sold policies to people who would not have been covered by it, so they wouldn’t be able to claim on the policy if their employment status changed. For example if you became self-employed, unemployed, retired, or a student.
- Underhanded – some sales advisers used methods to sell policies that were ethically and morally wrong. For example, telling customers of what could go wrong if they didn’t take out the policy.
- Pre-existing conditions – most PPI policies will not cover those with pre-existing medical conditions e.g. arthritis, asthma, diabetes, eczema, epilepsy etc, the sales staff didn’t find out if the customer had any.
- Commission – the sales adviser didn’t tell you that part of the cost of the premium went to the lender, bank or broker as commission.
- Pressure sales – the sales adviser put pressure on you, the customer, to take out PPI.
- Cooling off period - You were not informed that the PPI had a cooling off period (usually 30 days) after which time you could cancel it.
What Information is Required to Pursue a Halifax PPI Claim?
In order to start a mis-sold PPI claim with the Halifax, the information necessary will depend on your circumstances and what you have to hand, such as:
- Account or policy numbers;
- What date the policy started;
- How the policy was sold to you e.g. in person at the branch, over the phone, by post etc;
- What type of finance was taken out e.g. mortgage, loan, credit card;
- Who your employer was at the time you took out the PPI, what your salary was and if you received any pay if you couldn't work.
Don't worry if you don't have or can't remember much information. If you know it was the Halifax, or one of their brands who sold you the PPI and how it was sold to you, we can do the rest and start your Halifax PPI claim.
What Happens After You Start A Halifax PPI Claim?
The Halifax have eight weeks to look into your complaint and let you know of their decision. The Halifax will adopt the following process when dealing with your complaint:
- Acknowledgement - Your complaint will be acknowledged by the Halifax within five working days of receiving it. You will be provided with a personal reference number which will allow you get regular updates on how your complaint is progressing.
- Review - using all the information the Halifax has, they will conduct a investigation of how PPI was sold to you. You may be contacted by the Halifax if they need answers to any questions they may have based on the information you have already provided.
- Response - Once you have made a complaint, the Halifax are obliged to notify you of their decision within eight weeks. If this is not possible, the Halifax must contact you to let you know that there is a delay and when you can expect an outcome. However, most complaints are resolved within 8 weeks.
How Much Could I Claim From Halifax?
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.
Depending on how long you have had the accounts could be another factor in determining how much compensation you may receive. The longer you’ve been paying PPI premiums, the more you could claim back
If you are unsure of any of the above factors, it may be worth starting a free PPI check to find out where you stand.
Halifax PPI & Frequently Asked Questions
Read our frequently asked PPI Claims related questions and answers. In the majority of cases the first step to making a PPI claim is to get a PPI check done with the lender. We offer this as free standalone no obligation service, find out How to start your FREE PPI Check** with us today.
Claim Next of Kin PPI
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. 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 memeber it is worth getting a FREE PPI check done to know for sure.
How to start your Halifax PPI claim?
We’d like to discuss the details of your case with you, so your complaint can be lodged with Halifax 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 Halifax; or
- Complete our online claim form to start your claim.
How Long Do I Have Left To Claim My Halifax PPI?
A deadline of 29 August 2019 has been set by the FCA for all mis-sold PPI claims to be submitted by.
There is still time to make a claim, so make sure you submit your claim in plenty of time. Once the deadline has passed you will no longer be able to make a claim.
Organisations Who Can Provide Information & Help On Halifax PPI Complaints
There are some regulatory bodies who can offer information and assistance regarding PPI: The Financial Conduct Authority, the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The Financial Conduct Authority
12 Endeavour Square
Tel: 0800 101 8800
The FCA are the finance industry regulator, whose role it is to protect consumers. They will provide general information about PPI but cannot offer advice on an individual basis.
The Financial Ombudsman Service
Tel: 0800 023 4567
The FOS provide a free, independent dispute settlement service between financial businesses and their customers. They can deal with a wide range of finance based complaints including PPI.
Financial Services Compensation Scheme
PO Box 300
Tel: 0800 678 1100
The Financial Services Compensation Scheme(FSCS) may be able to offer compensation if a PPI provider you purchased a policy with is no longer trading, providing they were an authorised financial business.
Other organisations who can also help are:
168 Corporation St
Tel: 0344 477 1010
Citizens Advice have offices across the UK. They provide free, confidential and independent advice to help people overcome their problems.
The Money Advice Service
Tel: 0800 138 7777
The Money Advice Service was set up by the government to help people manage their money by offering free and impartial advice.