Much like the majority of lenders, Welcome Finance sold PPI alongside their loans. The issue with Welcome Finance, and where it differs from the other major lenders, is that the company has since gone out of business.
Before the company went out of business, it set aside a substantial sum to pay compensation, however this money has since run out. Anyone who wants to make a claim against Welcome Finance will have to refer their claim to Financial Services Compensation Scheme (FSCS).
The scheme is a government ‘fund of last resort’ who are tasked with paying compensation on behalf of the companies that are now unable to do so.
However, there is a strict time limit on what cases are acceptable. The FSCS was set up in January 2005 at the same time as the Financial Ombudsman Service (FOS) and cannot pass judgement on any sales that took place before this date. Even if a borrower were to be able to prove they’d been mis-sold PPI, the FSCS is unable to award compensation.
Grounds on which PPI may have been mis-sold by Welcome Finance
There are several ways in which Welcome Finance PPI was mis-sold.
Lots of people took out PPI cover with their loans believing that it boosted their likelihood of being accepted, or that the policy was a necessity. However, there are many other ways it may have been mis-sold:
- Were you aware that Welcome Finance had added the PPI insurance to your loan?
- If you had no idea you had it, you may have been mis-sold.
- At the time Welcome Finance sold you loan PPI, were you unemployed, retired or a student?
- If so, you may never have been able to claim on the policy, so it could have been mis-sold.
- If the policy costs weren’t listed separately by Welcome Finance to the loan advance, you may have been mis-sold.
- Welcome Finance was required to list the costs separately.
- Was any information provided by Welcome Finance about alternative policies?
- If not, then you may have been mis-sold, because there may have been cheaper and alternative cover elsewhere.
- Were you informed by Welcome Finance about any exclusions?
- For example, if you had any pre-existing medical conditions, the cover may have been voided, therefore you could be classed as being mis-sold.
- Loan PPI is an optional product so not compulsory, did Welcome Finance make this clear?
- If Welcome Finance told you it was required in order to secure the loan, or you felt pressured in any way to taking out loan PPI, you might have been mis-sold.
- Were any checks done by Welcome Finance to determine if you had any existing PPI policies?
- If not, you may already have been fully covered, so were mis-sold if they failed to check.
- Did Welcome Finance check if your employer provides full sick pay?
- If no checks were done and you are entitled to full sick pay, your loan payments would have been covered rendering the loan PPI unnecessary.
- When discussing your Welcome Finance loan application, did you feel pressurised into buying PPI?
- When taking out PPI Welcome Finance should have made sure you were happy with the deal, instead of having it forced on you. If any pressure was placed on you to take out a policy you didn't require, you may have been mis-sold loan PPI.
PPI Claims FAQ's
Read our frequently asked PPI Claims related questions and complete the Free PPI check** form above to start the process
Reclaiming Welcome Finance PPI
Start by finding your paperwork with evidence of mis-sold PPI. You will need this to make a claim. If you no longer have the paperwork, don’t worry – at PPIClaims.com we can find out if you bought PPI on any previous products or accounts.
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?
If you can’t remember please don't worry, we can check if you had PPI with Welcome Finance for free.
Start Your Welcome Finance PPI Claim?
We’d like to discuss the details of your case with you, so your complaint can be lodged with Welcome Finance as quickly as possible.
Before proceeding with a mis-sold PPI claim with Welcome Finance we first need to establish details of the PPI policy you held with them and offer a FREE PPI Check** service for this part of the claim process.
Starting your FREE PPI Check is easy:
Complete our FREE PPI check form to start the process.
What If My PPI Claim Has Already Been Rejected by Welcome Finance?
If you have raised a previous PPI complaint with Welcome Finance which was not upheld, and you wish to raise a further complaint relating only to the commission charged under the Plevin ruling on your PPI policy, please complete our online PPI High Commission refund form.
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 Welcome Finance?
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 Welcome Finance?
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.