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Deciphering the jargon of PPI

1st December 2017 - posted by Chris McCabe

PPI jargon can be very confusing, especially with its complicated phrases and acronyms. As we’re experts at deciphering the jargon of PPI, we’re here to explain what the most common terms mean.

PPI

PPI stands for payment protection insurance. The purpose of this insurance was to pay your monthly repayments if you were unable to do so as a result of injury, illness or unemployment.

You may hear jargon such as the term loan protection insurance used, but this is just another term for PPI.

FCA

FCA is short for the Financial Conduct Authority, who is an industry watchdog and financial regulatory body for the financial services firms and financial markets in the UK.

Plevin

Plevin is a legal case that considers whether the levels of commission paid on PPI premiums are fair and consistent. The rule is due to a case made by Susan Plevin on her PPI claim.

Consumers misled by brokers who failed to disclose the high PPI commission levels can use this argument.

FOS

FOS stands for the Financial Ombudsman Service, and is an independent service which settles disputes between financial providers and their customers.

BBA

Is the British Bankers’ Association, a trade association for the UK banking sector. They represent all those who offer banking services in the UK. The list includes small banks, major retail banks, universal banks, and private banks, as well as many others. The BBA is also working closely with the FCA and their members banks to handle complaints.

LoA

A Letter of Authority gives permission to your Claims Management Company to act on your behalf in PPI complaints.

Final Response Letter

The final response letter comes from the creditor and tells a customer whether they have the right to refer their complaint to the Financial Ombudsman. The letter will also give a time limit for making the complaint, which is usually within six months of receiving the final response letter.

Mis-sold PPI

PPI is mis-sold in many ways:

  • • The policy was added without the customer’s knowledge
  • • It was sold to self-employed, unemployed and part-time workers, who don’t match the qualifying criteria to make a claim in the first place
  • It was sold to customers with pre-existing medical conditions that were not identified at sale.
  • The policy didn’t cover the full term of the loan
  • It was explained poorly by sales staff, causing confusion for the customer.
  • It wasn’t made clear that the insurance was optional
  • You weren’t informed about exclusions under the policy
  • It wasn’t made clear the cost of the insurance and whether interest would be applied to it..
  • It wasn’t made clear that the PPI cover would run-out before the loan was paid off

Our team at First Target Recoveries specialise in mis-sold PPI policies and claims. We have helped over 65,000 people like you claim back their money since we launched in 2011.

Get in touch via our online form or call us on 0800 023 4953. We can help get your claim off the ground.

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