With the PPI deadline looming on the horizon, a number of eligible claimants may still be wondering whether or not they are truly entitled to compensation.
One particular group who have been left in the dark on whether or not they could submit PPI claims are the self-employed. Putting an emphasis on this group, in particular, here is what a self employed business owner needs to know about PPI compensation.
What Is Business PPI?
Business PPI is very similar to that of a normal PPI. The main difference to consider, of course, is that this insurance was aimed at businesses. Because of the business orientation, the size of the loans made to self employed people were usually larger than those made to individuals.
Through commission, extortionate fees and the mis-selling of policies, the cost to businesses over the duration of their loan could be very significant.
PPI Mis-Selling To The Self Employed
There is an astonishing number of self-employed businesses owners who have been affected by PPI. While many PPI policies did cover self-employed business owners to some extent, they often required stricter criteria for a payout.
For many who were self-employed when they took out a loan, PPI was mis-sold because some of the necessary criteria weren’t met. For this reason, those within this group could very well be eligible to claim.
How Can You Make A Business PPI Claim?
A business PPI claim can be made in a similar way to that of consumer PPI. If you feel like you or your business is entitled to PPI compensation, you will need to contact your bank. You can do this by writing to them directly, or utilise a trusted claims company if you’re truly stuck.
Your letter should detail all of the information you have regarding your policy, as well as any documentation that has lead you to make your claim.
Once you have sent your letter, there is a pending period in which you will have to wait to receive your verdict. You can make a claim multiple times if you feel as though you are being wrongly judged when receiving a rejection, or that your claim payout is not sufficient. Whatever the case, it is important to be persistent if you feel you have a strong enough case.
If you do choose to utilise a PPI claims company rather than opting for contacting the bank or lender yourself, opt for a no-win no-fee policy with low fees for successful claims to ensure you’re getting the most out of your claim.
Increasing Your Chances of a Successful PPI Claim
When it comes to making a claim, you may find yourself running into trouble depending on how well you documented your finances over time. While banks are required by law to keep hold of loan and credit documents for a certain amount of time, having the documents to hand yourself will work out in your favour.
However, in the cases that you do not have the paperwork or your bank has gone bust, the use of a trusted PPI claim company ensures that you can request that they find the relevant documentation for you, leaving you to run your business with peace of mind knowing your claim is being dealt with by an expert.
Research suggests that lenders have rejected 60% of the PPI claims that they received in the early days of PPI claims. However, when sent to the financial ombudsman service, nearly 80% were passed and customers received compensation that they deserved.
This is particularly common in those that are self-employed as they often opt for lenders outside of their traditional bank, especially if they have bad credit from a previous loan.
With the Supreme Court ruling on the Plevin case making it clear that even if a PPI policy was otherwise sound, the customer could still reclaim all the premiums if the seller received a big commission that it hadn’t disclosed to the customer.
With all this being said, self-employed individuals may not have quite the same level of protection as larger businesses. However, providing that your finances are in order, you have proof of your PPI policy, or you seek out the right support, you can provide a strong case and claim any compensation you are entitled to.
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