What is TSB Bank PPI?
There are many ways of referring to TSB Bank 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 TSB Bank 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 TSB Bank were added on to a loan, credit/store card, mortgage or an overdraft.
The duration of TSB Bank PPI usually covers a period of 12 months allowing the borrower to time to seek employment or return to work, if appropriate.
How was TSB Bank PPI mis-sold?
Some customers were sold TSB Bank PPI without knowing it had been added to their loan. Consumers say that TSB Bank advised them their loan, mortgage or credit card application would not be approved if they didn’t buy TSB Bank PPI. This meant borrowers took out the TSB Bank PPI, even though they may not need it because they didn’t want to risk losing the deal.
Were you mis-sold PPI by TSB Bank?
It is possible PPI may have been mis-sold by TSB Bank if any of the following facts occurred at the point of sale:
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- Were you unemployed, self-employed or retired at the time TSB Bank sold you the PPI policy?
- Had you been unemployed, self-employed or retired when you were sold your PPI policy by TSB Bank, 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 TSB Bank?
- If you had no idea that TSB Bank 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 TSB Bank explained the total cost of TSB Bank PPI to you at the time of sale?
- All costings relating to the PPI should have been explained to you by TSB Bank. This will be a major mis-selling factor if it wasn’t done.
- Did TSB Bank 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 TSB Bank, this is classed as high commission under the Plevin rule. You were mis-sold and due a PPI refund.
- Were you made aware by TSB Bank that you could cancel the PPI policy?
- TSB Bank 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 TSB Bank of any circumstances or exclusions where you would not be successful in making a claim?
- If TSB Bank had not made clear any exclusions or circumstances that would prevent you from claiming, you may have been mis-sold TSB Bank PPI policy.
- Were any enquiries made by TSB Bank if you had other PPI cover that would cover repayments?
- TSB Bank has a responsibility to find out if you had sufficient PPI cover elsewhere.
- Were you pressured into purchasing the TSB Bank PPI policy?
- TSB Bank 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 TSB Bank, 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 TSB Bank PPI term, you would not be covered by the TSB Bank PPI policy.
- Was it implied to you that TSB Bank PPI was necessary to get the finance?
- If the finance sought was such that required a PPI policy, TSB Bank should have let you know that you could shop around to find and compare PPI cover or if you already had PPI in place, TSB Bank should not have sold you their PPI policy.
- Did TSB Bank PPI have an upper age limit, if so, were you older than it?
- If TSB Bank 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 TSB Bank PPI, was it was shorter than the term of finance agreement? Did TSB Bank explain that there would also be a period of no cover towards the end of the finance agreement?
- If TSB Bank didn’t explain that you would have a period of no protection during the term of the finance agreement, you TSB Bank PPI policy was mis-sold to you.
- Were you unemployed, self-employed or retired at the time TSB Bank sold you the PPI policy?
What could you claim from TSB Bank?
If your claim against TSB Bank is upheld, you may receive a full refund of PPI paid to TSB Bank, including any interest charged on the PPI. Statutory interest of 8% per year would also be payable on the premiums and any interest charged.
How to Make a PPI Complaint to TSB Bank?
The Financial Conduct Authority (FCA) has set a deadline of 29 August 2019, by which time all PPI complaints will need to have been submitted. After this date, customers will lose the right to have their complaint assessed by us, or the Financial Ombudsman Service.
If you have previously received a letter from TSB Bank outlining potential concerns about the way PPI may have been sold to you, then you may have less time, so it is important to act as soon as possible.
Please be assured that by checking or complaining about PPI to TSB Bank, neither your relationship with, nor your credit score will be adversely affected in any way.
If you have a concern about how your PPI Policy was sold, it’s easy for you to contact us directly to discuss and start your check PPI for FREE.
We understand consumers may require different levels of assistance and are committed to making your check PPI** and claim process as simple as possible. Our process has been designed to make it as easy as possible for everyone wishing to make a complaint.
We’d like to discuss the details of your case with you so your complaint can be lodged as quickly as possible with TSB Bank to find out if you had any PPI charges on your loan or finance agreement.
