The Payment Protection Insurance (PPI) scandal has been in the news for over a decade.
With the claims deadline of 29 August 2019 soon approaching it is important for consumers to start their PPI checks and submit claims. This includes claims on behalf of deceased friends and relatives.
The assumption is that claiming mis-sold PPI for someone who has passed away isn't possible. This is not the case.
Claiming PPI For A Deceased Friend Or Relative
Parents and spouses often take out insurance policies, such as PPI, to protect their family from debt if they were to pass away.
If a deceased member of your family had loans, credit cards or a mortgage between 1990 and 2010, there is a strong chance they had PPI.
Making a PPI claim on behalf of a deceased relative or friend is sometimes overlooked as Personal Representatives (PRs) looking after the deceased's estate may not consider looking for mis-sold PPI.
Even though the policyholder has passed away, any money owed to them will form part of their estate. It is therefore worth a PR (executor, administrator, or next of kin) for the deceased to check for mis-sold PPI when dealing the estate, as part of their duties includes the settlement of any debt.
If the PPI policy was mis-sold, then a claim for PPI can be submitted on the deceased's behalf. To be mis-sold, the person wasn't aware the insurance was sold to them, or they didn't meet the eligibility criteria of the policy but were still sold it.
Getting a Free PPI Check
The Free PPI Check service aims to find out if you have PPI on any financial agreements before deciding to pursue a complaint.
The purpose of the check is to find out which of the deceased's accounts had PPI.
If the check shows there was no PPI, you will be notified.
If, however, the check reveals PPI was or may have been present, you will be advised of this.
Starting a PPI Claim from someone deceased
The personal representative acting for the deceased will have to provide their details for the claims handler to contact them.
Once the enquiry begins the claims handler will require further information about the deceased such as name, address (including previous addresses), any account numbers and sort codes.
The additional following information will also be required to start a PPI claim by banks and lenders:
- A certified copy of the death certificate;
- Photo identification of each Executor;
- A certified copy of the will (if applicable) and the grant of probate;
- In the absence of a will, a copy of the grant of letters of administration.
Note: The PRs will have to identify who the beneficiaries will be of a successful claim will be before starting a deceased PPI claim.
Deceased PPI Claims Process
Below is a high-level description of the what you can expect to happen after we receive your PPI check enquiry.
1. We will call you to start the Free PPI Check
We will need to speak to you in order to proceed with a Free PPI Check. We will need to confirm contact details for yourself and personal details of the deceased person(s) for who you wish to check PPI.
Plevin and High Commission Claims
Even if the PPI may not have been mis-sold it is still worth trying to ascertain if the amount of commission paid on the PPI premium was too high, under the Plevin rule.
The Plevin rule introduced by the Financial Conduct Authority came into effect after a Supreme Court decision in the case of Plevin v Paragon Finance 2014. The rule states that if over 50% of the PPI premium comprised of commission that went to the lender which you were unaware of, you can reclaim anything extra above that.