What is Abbey National PPI?
There are many ways of referring to Abbey National payment protection insurance (PPI), these include credit insurance, credit protection or loan repayment insurance. The purpose of PPI was to help a borrower make their repayments to Abbey National if they couldn’t due to an unforeseen event, such as sickness, injury or redundancy.
PPI is often confused with income protection insurance. They are two completely different products. PPI provides short-term cover and is provided alongside loan and credit products. Any pay-outs under PPI go straight to the loan provider instead of the policyholder.
Income protection insurance is designed to cover 70% of the policyholder’s income if they can’t work due to accident or sickness. This is long-term protection and can cover a person until they retire if they are too ill or injured to work.
Many PPI policies sold by Abbey National were added on to a loan, credit/store card, mortgage or an overdraft.
The duration of Abbey National PPI usually covers a period of 12 months allowing the borrower to time to seek employment or return to work, if appropriate.
How was Abbey National PPI mis-sold?
Some customers were sold Abbey National PPI without knowing it had been added to their loan. Consumers say that Abbey National advised them their loan, mortgage or credit card application would not be approved if they didn’t buy Abbey National PPI. This meant borrowers took out the Abbey National PPI, even though they may not need it because they didn’t want to risk losing the deal.
Were you mis-sold PPI by Abbey National?
It is possible PPI may have been mis-sold by Abbey National if any of the following facts occurred at the point of sale:
- Were you unemployed, self-employed or retired at the time Abbey National sold you the PPI policy?
- Had you been unemployed, self-employed or retired when you were sold your PPI policy by Abbey National, you would not have received any benefit from it as you would not have been covered.
- Did you know that PPI had been added to your agreement by Abbey National?
- If you had no idea that Abbey National had added PPI to your agreement, it could have been done without your consent. Alternatively it could have been an opt-out box that wasn’t clearly visible.
- Had the Abbey National explained the total cost of Abbey National PPI to you at the time of sale?
- All costings relating to the PPI should have been explained to you by Abbey National. This will be a major mis-selling factor if it wasn’t done.
- Did Abbey National make it known that that some of the PPI premium may have been paid as commission?
- If more than 50% of your PPI premium was paid as commission to Abbey National, this is classed as high commission under the Plevin rule. You were mis-sold and due a PPI refund.
- Were you made aware by Abbey National that you could cancel the PPI policy?
- Abbey National should have explained that you had a cooling off period and could exercise your right to cancel the PPI policy within that time.
- Were you made aware by Abbey National of any circumstances or exclusions where you would not be successful in making a claim?
- If Abbey National had not made clear any exclusions or circumstances that would prevent you from claiming, you may have been mis-sold Abbey National PPI policy.
- Were any enquiries made by Abbey National if you had other PPI cover that would cover repayments?
- Abbey National has a responsibility to find out if you had sufficient PPI cover elsewhere.
- Were you pressured into purchasing the Abbey National PPI policy?
- Abbey National should have looked at your personal situation to assess if you would benefit from having PPI without any pressure or hard-sell.
- At the time of taking out the PPI policy with Abbey National, did you have any pre-existing medical conditions?
- If you had any pre-existing medical conditions that meant you could not have worked for the duration of the Abbey National PPI term, you would not be covered by the Abbey National PPI policy.
- Was it implied to you that Abbey National PPI was necessary to get the finance?
- If the finance sought was such that required a PPI policy, Abbey National should have let you know that you could shop around to find and compare PPI cover or if you already had PPI in place, Abbey National should not have sold you their PPI policy.
- Did Abbey National PPI have an upper age limit, if so, were you older than it?
- If Abbey National PPI specified an age limit for cover and you were older than this, you would not be covered by the policy.
- How long was the term of Abbey National PPI, was it was shorter than the term of finance agreement? Did Abbey National explain that there would also be a period of no cover towards the end of the finance agreement?
- If Abbey National didn’t explain that you would have a period of no protection during the term of the finance agreement, you Abbey National PPI policy was mis-sold to you.
What could you claim from Abbey National?
If your claim against Abbey National is upheld, you may receive a full refund of PPI paid to Abbey National, including any interest charged on the PPI. Statutory interest of 8% per year would also be payable on the premiums and any interest charged.