The PPI scandal went on for more than a decade as numerous high street banks knowingly mis-sold payment protection insurance to their customers. After the scandal was revealed, all of the banks involved, including Halifax, set aside millions of pounds in order to compensate customers who had been paying for mis-sold PPI policies.
A lot of people won’t know whether or not they have paid for PPI before, while many others won’t be aware of whether or not their PPI was sold according to the regulations.
Things to consider
- Have you previously taken out a loan with Halifax?
- Have you previously been given a credit card by Halifax?
- Have you previously taken out a mortgage with Halifax?
Have you heard any of these statements or similar?
- “You need PPI for your application to be successful”
- “You should take PPI to protect you against loss of income”
- “You should take PPI to protect you if you become injured or ill”
If you answered ‘yes’ to any of the questions above, then there is a good chance that you might have been mis-sold PPI. If you’re still not sure whether you have paid for PPI unfairly after borrowing money from Halifax, the best thing to do is check your paperwork.
Getting Started with Your Claim Against Halifax
You have two options for getting started with a PPI claim against the Halifax.
1. Claim Directly
Claiming directly involves writing to Halifax yourself. You should include in the letter:
- The policy you are referring to (with any reference numbers you may have)
- The fact that you believe you were mis-sold to
- The grounds on which you believe you were mis-sold your policy
- The fact that you wish to have the amount, plus interest, refunded
The Halifax is legally obliged to respond to you in a timely manner and, if you are not satisfied with their response, you have the right to appeal with the Financial Ombudsman.
Pursuing PPI claims directly has a number of benefits:
- You keep all of the money you are awarded in the event of a successful claim
- As you are directly in touch with Halifax yourself, you are always aware of where your claim is up to
2. Use a PPI Claims Management Company
There are a huge number of PPI claims management companies operating in the UK. Such companies will claim back PPI on your behalf. However, they will charge a fee. This fee is most often between 20% and 30% of the claim value and is charged only in the event of a successful claim. Don’t forget, on top of that % though, there’s also VAT to pay.
While using a PPI claims management company to pursue a PPI claim against the Halifax on your behalf means you don’t have to deal with any of it, it also means you don’t keep all of your compensation! Before deciding on a PPI claims management company:
- Check your options – research a number of different claims management companies
- Ensure any company you use has a Ministry of Justice claims management license
- Ask the company about its success rate, particularly relating to claims against the Halifax
- Read around and do your homework. Check their reputation