What type of financial products had PPI?

From the inception of Payment Protection Insurance (PPI) which took place in the 1980s onwards, a wide range of lending facilities were developed to include Payment Protection Insurance.  When PPI first started (as early as the 1960s) it was very rarely seen on any forms of borrowing, as it was a very specific product.  However, when the Banks worked out the Payment Protection Insurance benefits to them, namely a huge profit that they could generate as a result of applying it to all borrowing facilities, they took hold of the product and developed it into becoming an all-encompassing policy that could fit into any form of borrowing that the Bank offered.

 

The following is a list of various products that could have PPI.  This is not a full list.  Throughout the list there are various references to loans, but of course attached to loans there are various examples that the Banks used different terminology to represent, such as fixed-rate loans and graduate loans.  Ultimately however, a loan is a loan, regardless of the name: –

 

  1. Loans.

 

A variety of loans could have had Payment Protection Insurance on it from graduate, through to business loans and of course personal loans which were the mainstay of the PPI.

 

 

  • Credit Cards.

 

 

This includes all forms of credit cards.  If people did have credit card facilities, certainly in the 1980s and 1990s, with some of the more obscure card providers (which were of course underwritten by the major High Street Banks) and you have not checked for PPI, then these are the prime candidates for refunds.

 

 

  • Mortgages.

 

 

The Banks did not see the benefit of offering PPI on mortgages until the 1990s, when they then became widespread.  Largely this was on a monthly fee basis, although some did have lump sum payments upfront, certainly with secured loans.

 

 

  • Secured Loans.

 

 

As with personal loans, these were exactly the same and could be wrapped up into a variety of different named products.  Ultimately however if the loan is secured against your property, or as some form of security – it was a secured loan and Payment Protection Insurance could invariably have been applied to it.  These tend to be the heftier premiums (and a particular dislike of ours) due to the size of the premiums and the limited nature of the PPI, which did not even cover the full terms of the loan.

 

 

  • Business Facilities.

 

 

Instead of being called Payment Protection Insurance, this was called “Business Loan Repayment Insurance”, but it can also be challenged.  It was applied to not only business loans, but also overdrafts where it was also referred to as “Commercial Overdraft Repayment Insurance” or CORI for short.

 

 

  • Current Accounts.

 

 

Some of the Lenders applied Payment Protection Insurance to their own personal current account facilities, particularly Barclays.  This was not as widespread and popular amongst the Lenders to promote.  For instance, Lloyds Bank rarely promoted the current account Payment Protection Insurance, they preferred instead to get a client to run their debt up on their overdraft and then re-finance by way of a personal loan.  This would then obviously have Payment Protection Insurance attached to it.  

 

 

  • Hire Purchase (HP).

 

 

A lot of sofa and commercial products that you bought as individuals could have had Payment Protection Insurance on them.

 

 

  • Store Cards.

 

 

Again, these were widely sold and members of staff used to be targeted for the sale when a card facility was taken out.  

 

 

  • HP or Car Finance.

 

 

The car finance manufacturers did not really get on board with Payment Protection Insurance until the mid-1990s, when Black Horse (then the market leader and probably still is) really went to town on the sale of Payment Protection Insurance with its clients.

 

As you can imagine there is a huge list of facilities that could have had Payment Protection Insurance attached to it.  Basically if you borrowed, they could have applied it.  The Payment Protection Insurance always came in two forms: –  

 

  1. The first, being a lump sum payment.

 

This was normally taken in advance of the facility.  The downside to the client in relation to this form of premium is that it was added to the facility at the outset and invariably it was added to the loan, which then in turn attracted interest upon the premium that you were paying.  So, in effect, a double whammy against you, the client, but obviously a double benefit for the Banks.

 

  1. The other way that premiums were taken, was on a monthly basis.

 

This was usually done on some of the mortgages, but more than likely the card facilities for credit cards.  The Payment Protection Insurance was then calculated on the outstanding balance at any given month.  The premiums charged were calculated per £100.  

 

So, for instance, for every £100 that you had on the card, the Firm would then calculate Payment Protection Insurance and add on the cost per £100 to the card facility.  So if the Payment Protection Insurance cost £2 per £100, and you were £1,000 in debt with them, the monthly payment would be £20 on the PPI.  This would fluctuate to reflect what balance you had on the particular card at any given point.  

 

With the huge range of financial products available it was not surprising that the Banks jumped on the bandwagon to sell the Payment Protection Insurance and the vast amounts of money that they made.  It is also not surprising how many millions of policies still remain unclaimed, despite the huge figures of those claims that have already been made, and paid out.  Whilst there is no definitive calculation, there is probably only about 10% of those policies that could have been claimed upon, that have in fact been claimed!

 

Therefore, if you have not (for whatever reason) made a claim because you may not have any paperwork, details or information in relation to the old facilities that you have or have had, then we can look at this for you, despite this lack of information, and we do this all on a “No Win No Fee” basis.