Browsing All Posts By Martin Knipe
The importance of Plevin in PPI if you have already had a PPI refund
The Plevin case itself is extremely important. If you have already had a Payment Protection Insurance (PPI) refund, then there is a strong likelihood that you will receive a further refund if commission was found to have been paid on the PPI that was already previously refunded to you.
This commission can, in some cases, be as high as 70% of the PPI premium paid. Currently is looks as if either a proportion or all the commission could be paid to you as well. This is in addition to any PPI that you have already secured, whether through ourselves, yourself independently, or through another third party.
What is Plevin?
Plevin was a legal ruling at the end of 2014 based upon Mrs Plevin taking on a company who mis-sold PPI to her which she had already recovered. She then looked to address the commission that she found out they had paid to a third party without her knowledge.
This commission should not have been paid and the Supreme Court ruled that it was against the terms of the facility that the client took out and, as such, any such premiums should be refunded. It is however important to note that the Court did not detail exactly how much of the commission should be refunded – a point which is still being argued about in 2017.
We believe, however, that if commission was paid and it should not have been then all of it should be refunded. This will very much depend however upon the amount and how you wish to proceed as a client.
Have you already had a PPI refund?
If you have already recovered PPI, either yourself, through a third party or through ourselves, then we can look again to establish if you are due any redress concerning the Plevin ruling and whether hidden commission was applied to facilities where you may have already received a refund.
If you have received a refund and commission was paid then we can certainly look to obtain further redress for you – all on a no win no fee basis.
How can I see if I qualify for a refund in relation to Plevin?
If you have had PPI in the past, whether you have known about it or not; whether you have (or have not) received a refund; whether you have had a PPI claim declined or not, then following the Plevin court ruling at the end of 2014, we can look to establish if commission was paid on any PPI premiums that you paid in the past. This is regardless of whether the PPI has been dealt with or not.
Once we have established whether commission was paid, we can then look at obtaining a refund on your behalf and if the refund was agreed and your previous PPI was either declined or not addressed then these can be activated and dealt with accordingly as well.
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Have you been declined a claim for PPI?
If you have had a Payment Protection Insurance (PPI) claim in the past which has been declined (for whatever reason) a recent court ruling in relation to Plevin at the end of 2014 means that we can still look at reactivating your claim if it is established that commission was paid on the premiums which were applied.
Due to the Plevin ruling and hidden commission, if it is established that commission was paid and it was not detailed to you within your paperwork when taking out the PPI then, even following a previously declined PPI claim (namely you did not receive a refund) we could potentially open this up again for you if commission was established as having been paid to a third party.
The reason for this is that the Bank did not provide you with the correct advice or paperwork and documentation. As such, this provides an important aspect when addressing any PPI claim. This is because you were unaware of it and, whoever made the decision in relation to the initial PPI claim, was unaware of this when the decision was made. So, therefore, we can look at re-opening the PPI claim again on your behalf.
The importance of Plevin in old PPI claims
It is vitally important that any claims that have been accepted or even declined are looked at in relation to hidden commission. There may not be a huge windfall of money but there will certainly be something depending upon the level of commission that was paid and how the Bank wants to proceed with regard to the commission payment.
If I had a PPI refund could I get more?
If you have already had a PPI refund, then yes, you could potentially get more. The commission payment was a separate payment made by the lender to a third party from the amount they received from you in the initial PPI payment. If you have had your PPI refund, that is a completely separate matter.
Plevin is an additional legal aspect that the Bank would have needed to address with you and detail to you within their paperwork and when you took out the PPI. They basically needed to spell out to you that they were paying a third party a sum of money in relation to the PPI. This is an important matter as, had it been brought to your attention about the PPI itself, then the chances are that if they had detailed that out of, for example, a £2,000 premium, £1,500 was being paid to Company Y by way of commission, then the chances are you would have ignored the PPI and not taken it out which is a completely different element to all the other arguments and reasons why PPI itself was mis-sold in the first place.
Can we help?
With our experience dealing with banking complaints and disputes for the last 18 years, we can certainly help clients in relation to this aspect of PPI, whether it means just dealing with the Plevin element itself or whether it means dealing with establishing if PPI was applied in the first place. This is regardless of whether you have any information or not; whether it is about dealing with a claim where you have already been successful in recovering PPI through ourselves or somebody else; or whether a claim for PPI has been unsuccessful.
We can deal with all of these different aspects – all on a no win no fee basis.
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Is there a time limit to reclaim PPI?
Currently, as at the beginning of 2017, no time limit for reclaiming PPI (Payment Protection Insurance) has yet been set.
The Financial Conduct Authority (FCA) has been looking at this issue over several years due to the pressure that they have received from various lenders, who are having to pay out huge amounts of money in relation to mis-sold PPI which on occasions stretches back as far as over the last 20 to 30 years.
Initially it was suggested that the time limit for PPI claims to end was going to be at some point in 2018. However, in August 2016 the FCA stated it was still conducting its enquiries and that the earliest a time limit would be put in place would be around the middle part of 2019. Recently, however, they have released a further statement suggesting that this time limit will now be put back towards the end of 2019.
Therefore, at present, we do not really know when a time limit, or indeed if a time limit, will be set although it is most likely that one will be established.
Will PPI claims cease after the proposed time limit?
The time limit (let us say towards the end of 2019) will mean that any fresh claims after the date set will not be accepted. Of course, there will be some exceptions to the rule, but as we are talking about a period of at least two and a half years into the future, quite frankly, if you have not already established if you have PPI or indeed, if you have had PPI and need this revisited in relation to a new ruling concerning “Plevin”, then now is the time to act!
There is no excuse – if you have had borrowing in the past, regardless of what that borrowing consisted of (whether it was credit cards, loans, mortgages or other forms of finance) you should check whether PPI was applied in the first instance and, if it was, look to make a recovery.
What if you do not have any paperwork regarding the facilities that you had in the past?
If you do not have any paperwork in relation to the borrowing facilities that you have had in the past, then this does not make any difference to us. We can still look on your behalf to establish if the PPI was applied.
There are no guarantees that the lending firms will have this information, but in most cases, we have been able to establish if PPI was applied on facilities from over 20 to 30 years old. We were able to do this without any paperwork or account details. There is therefore no reason why we cannot check yours on your behalf if you have not already made an enquiry.
What if you do not know if you have had any PPI in the past?
The vast majority of people do not know whether PPI was applied to their borrowing facilities. This is mainly due to the passage of time that has passed meaning that you have either forgotten or, due to the mis-selling of the lenders and even if you had PPI, you would most likely have been unaware of it especially if it was a loan facility or credit card facility where the PPI could have been hidden within monthly payments.
It is essential that if you have had any form of borrowing in the past and you have not already done so, that you establish if PPI was applied. Do not let the passage of time or the fact that you may or may not have information put you off from making these initial enquiries. We can of course do this for you as we have done on behalf of our clients – all on a no win no fee basis.
What if I have already made a claim for PPI? Can I look again?
If you have already made a claim for mis-sold PPI and it has been successful, we can revisit this following on from the result of a recent court ruling that has found that some PPI (in fact a lot of PPI cases that were mis-sold or applied to facilities) can be reviewed again if commission was paid to a third party without your knowledge.
If you have had a PPI refund in the past or had a PPI claim rejected, we can open this up again and look on your behalf to seek a further refund in respect of any commission payments.
Can you claim PPI after the deadline?
We must work on the assumption that after a deadline has been established no PPI will be able to be claimed.
However, there will still be hundreds of thousands of claims in the system which will be worked through. Therefore, the likelihood of the PPI scandals ending in 2019 is nil. The final PPI claims will probably be dealt with and we anticipate these running for another 2 years, possibly 3 years after the deadline date.
In addition to this, there are always going to be those exceptional cases where people look at recovering their PPI after a deadline date has been set.
However, you should not look to take this chance. If you would like us to check for PPI on your behalf, we can of course do so. We can establish if PPI was applied and, if it was applied, we can then look at obtaining a refund on your behalf if it was mis-sold, all on a no win no
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I had a PPI claim that was declined. Can I get this overturned?
In the past, many people have had Payment Protection Insurance (PPI) claims declined. Just because you had PPI, did not mean a guarantee of success. Many of the lenders decline claims with inappropriate excuses due to the very nature of the complaints process. If someone dealt with a claim themselves, or it was not dealt with effectively by a third party, the claim itself could be dead in the water – or so we thought.
What is PPI?
Many people who have had PPI claims declined will know what PPI is. Whilst there has been disappointment in the loss of the claim, there is potential now to look at reigniting the declined PPI claim cases by reopening the claim, and to also look at the potential for further compensation.
Why was my PPI claim declined?
By its very nature, PPI was an insurance which was attached to several different types of financial products. These ranged from credit cards, loans, mortgages, HP and store card facilities. Just because somebody had PPI, this did not mean that it was necessarily mis-sold. PPI claims were declined for several reasons as follows: –
- There might have been a genuine reason why PPI was taken. It may have been used and enjoyed by the client, but also;
- The lending institutions work on the assumption that the majority of people will, once a claim is declined, not take it further forward to be reviewed by the Financial Ombudsman. Therefore, regardless of whether the claim was declined correctly, or not, it was not reviewed by a third party.
What is Plevin?
Plevin is a legal case that ended in 2014. As a result of the ruling, it may well mean that if you had a PPI claim in the past which was declined, this can be reopened to not only look at the sale of the PPI, but also to consider whether any hidden commission was paid to a third party with the PPI payments that you made.
In the Plevin court case, Mrs Plevin took on her financial institution, Paragon, and successfully recovered her PPI by way of a mis-sale. Subsequently, she found out that commission had been paid on this initial premium to a third party. This was not detailed in the paperwork and so she challenged its validity. The Supreme Court ruled in her favour.
This means that anyone who has had any commission paid on premiums in the past, whether a claim has been made and declined, accepted or has not yet made, can look at obtaining further or additional compensation by way of the Plevin ruling.
How will Plevin help?
As a result of the Plevin case, PPI can be looked at again. There is a strong argument that this can be looked at even if your case has been declined in the past. The case itself can be reopened because if you paid the hidden commission, the lender did not deal with this aspect when declining your claim.
Therefore, because the hidden commission was not being detailed to you at the time it was being applied, then the knock-on effect could well be that the commission can be looked at and, more importantly, the PPI case can be reopened, even if it was declined in the past.
What we can do to help
We have a great deal of experience resolving financial complaints and have been doing this since the late 1990s.
We can certainly help with regards to the PPI aspect of any previously declined claim and we can also consider the Plevin aspect arising from the recent ruling, either together or separately on your behalf.
We work purely on a no win no fee basis. Therefore, if we are unsuccessful in obtaining a refund on your behalf, then there is no fee to pay.
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Did you have a PPI refund that went to your IVA?
If you have had a Payment Protection Insurance (PPI) refund in the past, and that payment went to your IVA administrator to disperse (meaning that you did not in fact receive anything) then you can potentially now look at recovering this.
There has been a change to the way that PPI compensation payments to IVA specialists are made and, retrospectively, there is a good opportunity to look at addressing those payments that have been made to them in the past.
What is PPI?
Payment Protection Insurance (PPI) refunds which were made in the past were as a result of mis-sales from the Banks. There has been an argument that as this was compensation, you should not have lost out and the payment should not have gone to an IVA specialist to disperse.
Bankruptcy is slightly different because legally, any claim that you had on someone prior to your bankruptcy rests with the Trustee in Bankruptcy meaning payments to the Trustee in Bankruptcy would still stand.
However, with IVA arrangements, if you have paid in the past – there is potential for recovering this money. The law is changing at the moment. Currently we do not know exactly what those details are as there is an ongoing legal case which is due to complete at some point in 2017 and will provide a final decision on this area.
What are the legal changes that are resulting in refunds being made direct to consumers, rather than IVA specialists?
The likely changes will mean that PPI payments received are likely to be the right and responsibility of the individuals making a claim – not of the Insolvency Service. Up until now, they have been taking the monies and receiving them from the lenders and dispersing them amongst the creditors of the client.
This is different from bankruptcy and is not to be confused.
It is also different from debt recovery companies who just manage payments back to creditors on your behalf (where you already would have received full reimbursement direct from whichever lender) unless you of course owed that lender money.
The Insolvency Service is in a considerable amount of turmoil over this, as they may potentially have to reimburse clients who have paid money to them and refunds have been received from various lenders.
The exact details are not yet known, but if you have had a PPI payment in the past from a lender that went to an Insolvency Practitioner on your behalf, that you now consider making a claim to recover this money direct for your own benefit.
Can I get the money back from the Insolvency Service?
It is not guaranteed at the moment that you will be able to recover your money direct from the Insolvency Service, or indeed from the lender who made the payment to the Insolvency Service in the first place.
The legal ruling is currently being established, but we are warning our clients and anyone else out there who has had a PPI refund in the past that has gone direct to their Insolvency Practitioner that there is a good chance recompense can be achieved and you could receive the full refund which you were due in the first place.
What can we do?
As a firm, we are established, with our Principal having been involved with banking disputes for almost 20 years.
We enjoy and welcome any challenge to obtain a refund for our clients where it has been mis-sold. We have always argued against PPI refunds having to be paid to Insolvency Practitioners because whilst there are legal requirements for insolvency practitioners, it is not a bankruptcy and they are effectively just legalised debt collectors.
The potential change in legal rules means that we now have the opportunity, all on a no win no fee basis, to represent our clients and to obtain a refund in relation to the PPI, whether it is from the lender, the Insolvency Practitioner or whoever else the payment was made to in the past.
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Obtaining a PPI refund if you have not already looked
Despite huge numbers of adverts and publicity over recent years regarding mis-sold Payment Protection Insurance (PPI), there are still vast numbers of policies (running into the tens of millions) which have not yet been claimed. These can stretch as far back as the late 1980s.
What is PPI?
PPI is an insurance that was added onto credit cards, mortgages, loans, store cards, finance facilities and so on in the past. They were extremely expensive and very profitable for the banks and lending institutions.
Most PPI was in fact mis-sold and, it is for this reason that we have had a tremendous surge in claims, resulting in the banks having to pay out billions of pounds in compensation to reimburse clients.
Why have you not looked to obtain a PPI refund in the past?
There are still millions of people who have not yet looked into obtaining a PPI refund or to establish whether PPI was applied to any of their facilities in the past.
I believe the main reason that people have not considered this is because they are put off by all the adverts and bombarding of information which, in effect, has confused people into apathy. People are concerned that they do not know whether they had PPI, they may not have any paperwork or account details and so they do not quite know what to do, or how to proceed.
Are you worried that you do not have any paperwork or even know if PPI was applied?
The vast majority of people who have not applied for a PPI refund is because they are unaware of any PPI being applied to any of their facilities in the past. A lot of people had credit cards in the late 1990s, all of which had a lot of PPI added. However, due to the passage of time, the belief that the claim would be too long ago to consider and concerns that there is no paperwork or certainty over whether PPI was applied, people can be reluctant to proceed.
I can certainly understand any reluctance which is why, when dealing with our clients, we do so on a no win no fee basis. This way, if there is no PPI or there is no information that can be obtain from the lender, then of course there is no fee to pay which means the client is protected.
Are you worried that you cannot remember if you had PPI or not?
Apart from not having any information, people are concerned that they are instructing a firm to work on their behalf on the pretence that there is PPI when a client is unaware themselves of whether they have PPI or not. This is the main problem with PPI. People were not aware of it and did not know that it had been applied. This is why we work purely on a no win no fee basis – for that exact reason.
The client can approach us and we will work on their behalf. If, after a couple of months no PPI can be found, whether it is too old or cannot be located or none was applied, then there is no fee to pay. This takes out the worry of instructing a firm and we are more than happy to do this! We can help you look into whether PPI has been applied all on a no win no fee basis.
If you have not looked into any of your previous facilities, whether they are credit cards, loans, store cards, HP, mortgages in the past (and it does not matter how far back as we can certainly go back into the late 1980s, 1990s and early 2000s when PPI and the mis-sale of it really came to the fore).
It does not matter if you do not have any paperwork, it does not matter if you do not have any account numbers or details, we can obtain this all for you, as long as we know the name of the lender and we can take it from there.
There are of course no guarantees with anything. Therefore, if PPI cannot be located or the details cannot be established then there is of course no fee to pay for that particular claim.
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If you had a PPI claim, can you receive an additional refund?
Following a court ruling at the end of 2014, the floodgates are starting to open up again in respect of Payment Protection Insurance (PPI) and the hidden commission paid to third parties when PPI payments were taken from clients.
What is PPI and what does the court ruling of Plevin mean?
As we know, PPI was attached to several different types of facilities in the past and was largely mis-sold by lenders.
There has been a recent court ruling where hidden commission has been located as being paid within PPI policies to third parties. As a result of this legal action having been taken, the amount can be challenged if it was not detailed within your original paperwork or discussed at the point of sale. Of course, we can pretty much guarantee that at no time was the hidden commission discussed in any PPI sale and the likelihood that it was detailed within the agreement is slim to nil.
If this was the case and commission was not detailed to you, then we can look at obtaining a refund in relation to any payment of commissions. This can be if you have had a successful PPI refund claim in the past, or even if you have not yet approached the lender until now.
Have you already received a PPI refund?
If you have already received a PPI refund, we can purely obtain redress in relation to any hidden commission paid by yourself, or through the PPI refund which has already been addressed. This is likely to be a percentage (although the full details have not yet been fully established) of the commission that was paid, and a refund is likely to follow when we make an application on your behalf.
We work purely on a no win no fee basis as nothing in relation to financial institutions is guaranteed, and there is of course no guarantee that commission was in fact paid because none of it was ever detailed within the terms and conditions of the agreement that you signed when taking out the facility originally.
When can I receive more money?
The Financial Conduct Authority (FCA) is looking at the Plevin case and how it will affect lenders. This is likely to conclude in the first half of 2017, at which point claims can be finalised in relation to any Plevin claims and of course, the knock-on effect that they will have in relation to claims that have already been made or declined in the past, or that have not of course yet been made until this now.
What is Plevin?
Mrs Plevin took on Paragon through the Courts, following a successful PPI claim where she had received full reimbursement. The Plevin court case was in relation to commission that she found was applied on her PPI premium which had not been detailed within the paperwork or discussed with her at the point of sale.
Thus, the Judge of the Supreme Court agreed that commission should not have been applied in this way and asked the lender to refund an amount to Mrs Plevin.
What can we do for you?
As a firm, we have been dealing with PPI and banking disputes. Our Principal, Martin Knipe, has been involved with banking complaints since the late 1990s.
We work purely on a no win no fee basis. We establish all the material facts in the first instance, such as whether PPI was applied, whether it has already been refunded, accepted or declined and whether Plevin has an effect in relation to the PPI which has been located.
If commission was found to have been paid, then we will work to obtain this as well as any other additional PPI – all on a no win no fee basis. This means you are protected should no refund be achieved.
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Payment Protection Insurance (PPI) and Plevin will be a phrase that we will start to hear a lot of over the next few years, and likely up until the end of 2019 (which is the subscribed date when PPI claims are expected to end).
Are Plevin and PPI linked?
Plevin and PPI are linked in that anyone who has had PPI applied in the past (whether they have checked or not, already secured a successful refund or whether they have had a refund that has been declined).
The Plevin court case heard at the end of 2014 means that there is potential to recover further monies from any hidden commissions paid by the lender to third parties once the PPI had been sold.
A potted history of the Plevin case
Mrs Plevin had already secured a refund in relation to PPI, but she discovered that commission had also been paid by the Bank to a third party in relation to the sale of the policy. This was challenged in the Court and, after various hearings, it was heard by the Supreme Court which ruled in Mrs Plevin’s favour. This has meant that the Banks now face having to pay back the commission that they paid to any third parties if it was not already discussed and annotated in the legal documents that you signed when PPI was taken out and which, of course, was never the case.
The Financial Conduct Authority (FCA) are deciding how it is to proceed but if you have PPI and obtained a refund in the past, or if this refund has been declined, we can still look to recover the commission element. Also, if it has been declined previously, potentially we can look at opening up the PPI claim again on your behalf.
Can I reclaim a refund of PPI in relation to Plevin?
If you have paid PPI (regardless of whether it has been looked into, declined or you have already received a refund) then yes, we can look at obtaining a refunding in relation to any hidden commission that was paid.
This would of course mean us approaching the lender and establishing if PPI has been applied together with any commission paid to any third party. If it was paid then we will need to establish how much this was and then look to obtain a refund on your behalf.
If your claim for PPI has previously been declined, we could still potentially reopen the PPI claim again as a material fact, namely that hidden commission was not advised to you at the outset and, if this was the case, then the claim itself needs to be re-evaluated in light of this information.
What refund will I get?
This is the tricky question – What refund are you likely to get in relation to Plevin?
Well, if commission has been paid, it tends to be extremely high (in the region of 65% to 75% of the premium). It is therefore likely that you will get something. The question is just how much?
The Financial Conduct Authority (FCA) (with no legal power) is looking to suggest that anything paid over 50% of the commission is to be refunded. However, as they have no legal power there is a reasonable case for applying to have all the money back. Either way, it will depend upon the situation, how much money we are talking about and whether you want to continue with a claim when an offer has been made. However, we can establish all of this for you and take your instructions accordingly.
How can we help?
With our expertise in banking disputes, Plevin is different to PPI, in that it will require a degree of argument and certain aspects which could include opening up previously declined PPI claims and consideration of consequential loss concerning the original PPI refund if you already have received this in respect of a PPI claim.
If you have not yet established if PPI was applied in the past, then we can of course start off with this on your behalf and include with any PPI claim itself an additional element bringing in the Plevin aspect at the same time.
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Payment Protection Insurance (PPI) has been rumbling on for several years and, finally, it seems that the Financial Conduct Authority (FCA) are about to announce (within the first quarter of 2017) a time limit when PPI claims are to be finally submitted.
What is PPI?
Payment Protection Insurance (PPI) is cover that was sold by the majority of lenders in the late 1980s, 1990s and 2000s to cover their clients’ borrowing. This was taken out against credit cards, loans, mortgages, hire purchase (HP) and store cards. Unfortunately for the clients, what they did not realise is that the Banks were making huge amounts of money from selling the PPI and it was ultimately an appalling product that was expensive and rarely beneficial to the client.
Why is there a PPI time limit?
It is a good question to ask why there is a PPI time limit being introduced. It is calculated that there could well be a further 30 million PPI policies which remain untouched or checked by clients. As such, the question has to be; is it fair setting out a time limit and, should this process just continue?
On the flip side of the coin, you have got to be, quite frankly, living under a stone not to know or have heard about PPI. However, the way that it has been promoted does leave a bad taste in people’s mouths – rather than people being encouraged to check with their lenders.
Realistically, most people are to blame for the promotion of the mis-selling of PPI and looking at and addressing it. Claims Companies, for their over-zealous and unhelpful marketing and the Banks’ negativity in helping clients who approach them direct. This is compounded by an ineffective regulatory regime – all of which means that clients can lose out.
Who decides upon the time limit?
The time limit is decided upon by the Financial Conduct Authority (FCA) which has been undertaking a review with lenders, claims companies and other people who deal with individuals on a charitable basis (such as Citizens Advice Bureau and other advisory bodies). It is not known for sure that a time limit is going to be put in place and each time we appear to be near to a date being established, it is delayed further whilst other reports are considered. There is also an indication that the time limit will be challenged legally, but needless to say there is a great possibility that a time limit will be put in place.
Regardless of this, you must now check whether any facilities that you have had in the past had PPI attached to it. Whilst there is likely to be a period of another two years (at least) to make sure that any potential claim is submitted (that is submitted and not rectified), there is no need to delay – just get on and do it.
When is a time limit for PPI expected?
The PPI time limit is expected to run until the end of 2019. During this time and leading up to the end of 2019, there will be a pre-agreed advertising program funded by the Banks in order to encourage people to check whether they have had PPI.
It is essential that this is done and, despite the Banks’ reluctance (despite what they say in their adverts) to make sure that all old files are explored with the Banks and any lenders that you had throughout the 1980s, 1990s and 2000s to establish if PPI was applied and, if it was, look to recover it.
What we can do
We work on behalf of clients we have been dealing with banking disputes since the late 1990s following working with a main High Street Bank.
We deal with many clients who do not have paperwork, account numbers or details. Many do not know whether they have had any PPI applied or not. We will however establish whether any PPI was applied and, if it is, look to obtain a refund on your behalf. It is only when we are successful that our fee will be charged and that fee will be 20% plus VAT (equivalent to 24% inclusive) of any refund that is made.
If there is no refund, or no PPI is recovered in any way, shape or form, there is no fee to pay.
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