Debenhams Store Cards PPI Check

What is Debenhams store card PPI?

Debenhams payment protection insurance (PPI) may also be known as credit insurance, credit protection or loan repayment insurance among other terms on your documentation.

PPI is an insurance that helps someone who has taken out any form of finance to meet their repayments if they become sick, injured or redundant.

There is often confusion between PPI and income protection insurance. The two products are very different. PPI is a short-term policy, usually 12 months, sold with a loan and other credit products. This gives the borrower time to look for a new job or to return to work, if appropriate. Successful PPI payouts are made directly to the loan provider, not the policyholder.

On the other hand income protection insurance covers 70% of the policyholder’s income if they are unable to work due to an accident or sickness. This protection is long-term and can cover the policyholder until retirement if they are unable to work again.

Debenhams sold many PPI policies that were added to loans, credit/store cards, mortgages or overdrafts.

Was Debenhams PPI mis-sold?

Debenhams PPI was added to some customers’ loans without their knowledge. Other borrowers say that Debenhams told them their loan, mortgage or credit application may not be approved if they didn’t have Debenhams PPI. This resulted in borrowers taking out Debenhams PPI to avoid losing the deal, regardless of if they needed the policy or not.

Could you have been mis-sold PPI by Debenhams?

If any of the following situations occurred at the point of sale, you may have been mis-sold PPI by Debenhams:

• • At the time Debenhams sold you the PPI policy, were you unemployed, self-employed or retired?
    • If you were unemployed, self-employed or retired when Debenhams sold you your PPI policy, you would not have been covered so would not have received any benefit from it.
  • Were you aware Debenhams had added PPI to your agreement?
    • If you unaware Debenhams had added PPI to your agreement, it was done without your consent. Alternatively it could have been an opt-out box that wasn’t clearly visible.
  • Were you told what the total cost of Debenhams PPI was at the time of sale?
    • Debenhams should have explained all costings relating to the PPI. This will be a major mis-selling factor if it wasn’t done.
  • Did Debenhams make it known 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 Debenhams, this is classed as high commission under the Plevin rule. You were mis-sold and due a PPI refund.
  • Was it made clear to you by Debenhams that you could cancel the PPI policy?
    • Debenhams should have notified you of your right to cancel the PPI policy within the cooling off period.
  • Did Debenhams bring to your attention any of the circumstances or exclusions where you would not be successful in making a claim?
    • If Debenhams had not made clear any exclusions or circumstances that would prevent you from claiming, you may have been mis-sold Debenhams PPI policy.
  • Did Debenhams check to see if you had other PPI arrangements that would cover repayments?
    • Debenhams has a responsibility to find out if you had sufficient PPI cover elsewhere.
  • Was there any pressure by Debenhams into purchasing the PPI policy?
    • Debenhams should have looked at your personal situation to assess if you would benefit from having PPI without any pressure or hard-sell.
  • When taking out the PPI policy with Debenhams, did you have any pre-existing medical conditions at that time?
    • If this was the case and you could not have worked for the duration of the Debenhams PPI term, you would not be covered by the Debenhams PPI policy.
  • Was it inferred to you that Debenhams PPI was necessary to get the finance?
    • If the finance sought was such that required a PPI policy, Debenhams should have let you know that you could shop around to find and compare PPI cover or if you already had PPI in place, Debenhams should not have sold you their PPI policy.
  • Did Debenhams PPI have an upper age limit, if so, were you older than it?
    • If Debenhams PPI specified an age limit for cover and you were older than this, you would not be covered by the policy.
  • What was the term of Debenhams PPI, was it was less than the term of finance agreement? Also, did Debenhams advise that there would also be a period of no cover towards the end of the finance agreement?
    • If Debenhams didn’t explain that you would have a period of no protection during the term of the finance agreement, your Debenhams PPI policy was mis-sold to you.

What you could claim from Debenhams

If your claim against Debenhams is upheld, you may receive a full refund of PPI paid to Debenhams, this includes any interest charged on the PPI. Statutory interest of 8% per year is also payable on the premiums and any interest charged.

How to lodge a PPI complaint with Debenhams?

The PPI deadline (29th August 2019) set by the FCA has now passed and we are no longer accepting any new PPI claims.