To help you learn more about payment protection insurance and reclaiming, here are a few commonly used terms and their definitions.
Stands for Payment protection insurance and it is designed to protect consumers in the event that they are unable to work due to illness, injury or redundancy ensuring that their loan repayments are kept up to date.
Stands for the Financial Ombudsman Service, it is the official independent service for settling disputes between businesses providing financial services and their customers.
The Financial Conduct Authority, The FCA is the independent body that regulates the financial services industry in the UK. The FCA has taken over responsibilities from the Financial Services Authority (FSA) in terms of setting the standards that financial organisations must meet and the action that can be taken against firms that fail to meet these requirements. The FCA has five specific objectives, these are: maintaining market confidence, promoting public understanding of the financial system, contributing to the protection and enhancement of the stability of the UK financial system, securing the appropriate degree of protection for consumers, and fighting financial crime.
The FSCS (Financial Services Compensation Scheme) is the compensation fund and last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading they may be able to pay compensation to its customers.
Stands for the "British Bankers Association". The BBA is the leading trade association for the UK banking and financial services sector. They promote a legislative and regulatory system for banking and financial services - in the UK, Europe and internationally as well as promoting and defending the industry.
Meaning, you have no financial commitment to the company unless your case is won. At the Claims Advisory Group we charge a fee of 39% of the value of the settlement if your case is successful. Details can be found in our terms and conditions.
There are a number of reasons your policy could have been mis-sold to you. This normally refers to occasions where the policy has been sold without the lender assessing the suitability of the insurance, PPI being added to the loan without your knowledge or simply not being told that the policy is a optional extra. There are more examples of mis-selling here.
A PPI policy where the full cost of the insurance is added to the amount borrowed, meaning the customer will pay interest on both the loan and the insurance premium.
This is the amount charged by the insurance provider (normally each month) for payment protection insurance.
An alternative name that is sometimes given to PPI.