What is Coutts & Co PPI?
There are many ways of referring to Coutts & Co 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 Coutts & Co 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 Coutts & Co were added on to a loan, credit/store card, mortgage or an overdraft.
The duration of Coutts & Co PPI usually covers a period of 12 months allowing the borrower to time to seek employment or return to work, if appropriate.
How was Coutts & Co PPI mis-sold?
Some customers were sold Coutts & Co PPI without knowing it had been added to their loan. Consumers say that Coutts & Co advised them their loan, mortgage or credit card application would not be approved if they didn’t buy Coutts & Co PPI. This meant borrowers took out the Coutts & Co PPI, even though they may not need it because they didn’t want to risk losing the deal.
Were you mis-sold PPI by Coutts & Co?
It is possible PPI may have been mis-sold by Coutts & Co if any of the following facts occurred at the point of sale:
- Were you unemployed, self-employed or retired at the time Coutts & Co sold you the PPI policy?
- Had you been unemployed, self-employed or retired when you were sold your PPI policy by Coutts & Co, 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 Coutts & Co?
- If you had no idea that Coutts & Co 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 Coutts & Co explained the total cost of Coutts & Co PPI to you at the time of sale?
- All costings relating to the PPI should have been explained to you by [LENDER]. This will be a major mis-selling factor if it wasn’t done.
- Did Coutts & Co 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 Coutts & Co, this is classed as high commission under the Plevin rule. You were mis-sold and due a PPI refund.
- Were you made aware by Coutts & Co that you could cancel the PPI policy?
- Coutts & Co 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 Coutts & Co of any circumstances or exclusions where you would not be successful in making a claim?
- If Coutts & Co had not made clear any exclusions or circumstances that would prevent you from claiming, you may have been mis-sold Coutts & Co PPI policy.
- Were any enquiries made by Coutts & Co if you had other PPI cover that would cover repayments?
- Coutts & Co has a responsibility to find out if you had sufficient PPI cover elsewhere.
- Were you pressured into purchasing the Coutts & Co PPI policy?
- Coutts & Co 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 Coutts & Co, 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 Coutts & Co PPI term, you would not be covered by the Coutts & Co PPI policy.
- Was it implied to you that Coutts & Co PPI was necessary to get the finance?
- If the finance sought was such that required a PPI policy, Coutts & Co should have let you know that you could shop around to find and compare PPI cover or if you already had PPI in place, Coutts & Co should not have sold you their PPI policy.
- Did Coutts & Co PPI have an upper age limit, if so, were you older than it?
- If Coutts & Co 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 Coutts & Co PPI, was it was shorter than the term of finance agreement? Did Coutts & Co explain that there would also be a period of no cover towards the end of the finance agreement?
- If Coutts & Co didn’t explain that you would have a period of no protection during the term of the finance agreement, you Coutts & Co PPI policy was mis-sold to you.
What could you claim from Coutts & Co?
If your claim against Coutts & Co is upheld, you may receive a full refund of PPI paid to Coutts & Co, including any interest charged on the PPI. Statutory interest of 8% per year would also be payable on the premiums and any interest charged.