PPI scams and what to look out for
The PPI miss-selling scandal was responsible for the biggest customer redress scheme in the whole of UK history, with almost £40 billion paid out as refunds over the last decade or so. Over at Winzum we’re willing to bet you have seen at least a couple of PPI compensation adverts, but do you actually know what they entail?
Of course, the PPI scandal isn’t exactly crucial knowledge, however at the same time it is definitely worth knowing about, mainly because you might actually be owed something (although the compensation deadline has passed by now). There has also been a profound rise in the number of PPI scams that fraudsters are trying to pull, and if you don’t know your stuff you might be vulnerable.
We’re always looking to help our wonderful online competition community here at Winzum, which is why we decided to delve into the world of PPI scams and show you exactly what to look out for. It’s more than worth knowing!
An overview of PPI
PPI stands for Payment Protection Insurance, and it was an insurance policy that was offered by banks to cover things like credit cards, loans and mortgages in the event that you suddenly could not continue paying your balance. In essence it is a great idea, but the problem was that banks were mis-selling PPI to people who had absolutely no need for it.
And there’s more too, because banks were earning massive amounts of commission each time they sold PPI, something that was uncovered in the so-called Plevin case. It all led to the billions refunded to customers by various banks, and the beginning of the PPI redress scheme. If you want to know more about the PPI basics we have a handy article available here [everything you need to know about PPI].
The only ways you would be owed PPI compensation
In the context of PPI scams it is absolutely crucial that you know whether or not you could have ever received PPI, because this is the easiest way to tell whether a fraudster is trying to scam you. For example, if you have never owned a credit card, taken out a mortgage or loan you simply cannot have been sold PPI.
So, if you get a call claiming that you are owed a PPI refund, yet you haven’t had any of the above, you can be pretty certain that somebody is trying to scam you.
Remember the PPI compensation deadline has passed
And here’s another thing to remember when it comes to PPI scams: the official government deadline to make a claim has passed, so it is now a lot harder to actually make a claim.
In fact, the only way to claim back PPI redress these days is through the Small Claims Court. Remember this, because if somebody calls you claiming to easily be able to obtain your PPI refund for you, they are most definitely lying.
What to do if you are hit with an attempted PPI scam
Most attempted PPI scams will come over the phone these days, so it is important you are always aware of them. If you are hit with an attempted PPI scam we advise you to simply state calmly that the PPI deadline has ended, and that you could never have received PPI either as you haven’t taken out a credit card, loan or mortgage.
In the large majority of cases this will be enough to get the fraudster to hang up immediately, and you can go about your business!