Find out how Bank of Scotland is handling PPI claims and whether your policy could have been mis-sold.

Background on the PPI scandal

Payment protection insurance, often sold alongside credit cards and other forms of borrowing, precipitated the highest number of complaints to the Financial Ombudsman Service over a single product. PPI was sold in order to cover loan or credit card repayments in the event borrowers become sick, suffer an accident, or, in some cases, become unemployed. However, the incidence of mis-selling of this product was astronomical, with people being sold cover even though they didn’t meet the requirements. Victims of mis-selling have included those with long-term medical conditions, whose condition would exclude them from cover, whilst others were not even aware that PPI had been added at the point of sale of their loan. Furthermore, PPI sold in conjunction with loans was often 70% more expensive than standalone insurance policies, meaning the insurance cost completely dwarfed the interest re-payments.

How easy is it to reclaim PPI from Bank of Scotland?

Initially, the banks, including Bank of Scotland, were extremely reluctant to deal with consumer complaints. Back in December 2010, the FSA introduced legislation to stop the mis-selling of PPI, meaning providers had to make it entirely clear that cover was optional and ensure that policy detail was fully explained to customers, rather than assuming they would read the small print. Although many assumed that this ruling would see the banks begin compensating customers for PPI mis-selling, this was not the case. The banks did not agree with the retrospective application of the FSA legislation, meaning they would have to go back historically and compensate their customers. The British Bankers Association launched a challenge in the High Court to overturn this decision, but, on the 20th April 2011, they lost their case. This has meant that the stalling tactics operated by many banks in relation to PPI claims have had to stop and they have set aside £9 billion to settle payouts, and we can help you get your share.

If you believe you may have been wrongly sold PPI, you would definitely be within your right to pursue this and find out for sure whether you are eligible and, if so, to reclaim what you lost as the result. Many people were not even aware that they had been sold PPI when they took out a loan,  but you can start off looking back at and checking the figures for your monthly repayments. Using the APR, size and length of the loan, you can determine whether you were paying for an additional product. For example, if you took a loan of £10,000 over ten years at 10% APR, you should have been paying back £130 per month. If your repayment figures were over and above this, you were most likely being charged for PPI, (usually from about 15%, up to a massive 30%, of the balance).

What to do next?

You have a couple of options. Firstly, you need to ascertain whether or not you have been mis-sold PPI