PPI, otherwise known as Payment Protection Insurance was an insurance policy sold by Capital One and other banks in conjunction with a loan, credit card or other personal finance that was meant to protect the policy holder against falling ill, suffering and accident or being made unemployed.
The policy would cover the holder’s repayments on the finance the PPI was bought in conjunction with if they were no longer able to meet the payments. This would last for anything up to 12 months, at which point the holder would need to find additional forms of income if they were still unable to meet the repayments.
Capital One sold PPI to thousands of people all over the country, PPI was a good product for those people who were sold it correctly and understood its uses and limitations.
Thousands of Capital One customers struggled when off work and used the PPI policy successfully to meet the repayments of a personal finance policy they had running.
Problems arose when Capital One and other banks turned many people away because they couldn't claim on the PPI cover they had been paying for. Many were ineligible to claim because of employment status, age, expiration of policies and falling within one of the policy exclusions like back and stress related time off work.
In the investigations and years that followed it emerged that Capital One mis-sold PPI to more customers than any other bank, in 2012 they announced that more than £3bn had been set aside to cover the stream of on-going PPI complaints and the compensation involved.
Capital One, like many of the other High Street banks mis-sold PPI to thousands of customers for one main reason, profit.
PPI was very profitable, indications show that more than 80% of premiums were profit, meaning that the banks made more money from the PPI premiums than they did the loan it was bought in conjunction with.
These lucrative profits lead to big bonuses and targets set internally for sales people to hit, high pressure and big bonuses combined with a lack of product knowledge and training lead to many staff members pushing customers in to buying PPI when they didn't want, need or eligible to have it.
Many customers were pushed into buying the policy, given the wrong or incorrect information or sales people implied that PPI was compulsory and may benefit the application in some way.
Like many other banks, underhand tactics were used by sales staff within Capital One to push up sales, persuade customers to buy into a product they didn't need and even add the policy to customers accounts without their knowledge or permission.
Many investigations over several years revealed that Capital One were guilty of mis-selling PPI for those reasons and have since been advised to settle all valid PPI claims within 8 weeks.
Many of the banks including Capital One undertook similar tactics to mis-sell PPI and most people who have it were actually mis-sold in some way, even if you know you have PPI and took it intentionally there is every chance that you could get compensation if you are not 100% satisfied with the product and can show that you were mis-sold.
PPI was mis-sold to hundreds of thousands of people across the country, Capital One account for around 40% of the total amount of PPI complaints made in the UK each year, DPA specialise in Capital One PPI complaints and most of those who come to us were mis-sold PPI in similar ways.
The most common reasons for being mis-sold PPI by Capital One are:
1. The sales person implied that PPI was compulsory
2. The sales persons implied that having PPI it would benefit the application for personal finance
3. PPI was added to the account without the holders knowledge or consent
4. The policy holder was retired, unemployed or self-employed at the time of purchase
5. The policy holder had additional insurance that would cover the repayments if needed and this was not discussed or PPI was added anyway
6. The policyholder was outside of the age restrictions on purchase, 18-65.
7. PPI was purchased in conjunction with a long term loan and it was not pointed out that PPI covers a much shorter period, typically 12-24 months and so the holder would not be covered for the life of the policy.
8. The sales person did not make it clear that PPI was optional and could be purchased elsewhere
9. The terms and conditions were not detailed to the holder and policy exclusions including back and stress related time off work was not discussed.
If any of the above common reasons for being mis-sold PPI by Capital One are true in your case then it is time to claim back your compensation.
If you can categorise yourself in one of the above common reasons for being mis-sold PPI by Capital One then the next step is to start looking for documentation, evidence that you have been paying for PPI illegitimately.
Check monthly statements and bills, policy documents and anything else you have relating to the loan, credit card or mortgage from Capital One for signs of added insurance. Chances are that if you have a few accounts, you will have PPI on one or all of them so check carefully.
Look for ANY additional charges, Capital One have been known to package the insurance up and hide it away with reference points around the documents so follow any stars or hashes and check thoroughly.
If you can see an additional monthly or up front charge then you should get in touch immediately as there may be time restrictions on when you can claim back compensation from Capital One for mis-selling you PPI.
If you are unsure, maybe you believe you took PPI but can't find any evidence, or have it on paid off finance or even on a hunch, get in touch. One Capital One customer who in his own words 'took a punt' by talking to us would not have claimed if we had not got in touch, he thought he could have 2 claims, turned out he had 13 and was awarded thousands of pounds in compensation.
You can get compensation from Capital One if you can prove you have been paying premiums on a current or paid off form of personal finance and can prove that you were mis-sold the policy in the first place.
Hundreds of thousands of people in the UK are in the same boat as you, most do not even realise they have PPI and some believe that they would know about it if they did. The reality is that in some cases, banks like Capital One added PPI to customers account without their knowledge and consent so you may have PPI and now even know, perhaps assuming that the loan repayments were only for the APR when in fact that included PPI.
There are many reasons why you could have been mis-sold PPI and many more ways that it could go unnoticed, so if you are unsure the best thing to do is to get in touch, we can take the hassle out of your Capital One PPI claims for you. Simply answer a few questions and sign a couple of forms to get started.
The first step to claiming back compensation from Capital One is to identify whether you have PPI and whether you were mis-sold, then get in touch. Or if you are unsure give us a call and we can advise if you have PPI or not.
The next step only takes a few minutes and involves a quick phone call, after a few questions we will dispatch a claim pack to you pre-filled with all your information to save you precious time.
Once you receive the pack, simply sign the areas required and send it back free of charge, this will enable us to act on your behalf and get started with your PPI complaint against Capital One.
It really is as simple as that, we do all the digging and chasing for you, just sit back and wait for instruction from us. Typically a claim will not take too long, 8-12 is the norm so why wouldn't you invest 5 minutes of your time to get thousands in compensation as easy as that.
It is estimated that 20 million PPI polices were mis-sold, current trends show that 40% each year is Capital One so it appears they are responsible for selling 8 million policies to their customers.
Of course not all of these policies is eligible to make a claim, but a vast majority of them are so check your documents and get in touch to make a claim for compensation or some advise.
Capital One have put up over £3bn in compensation to cover the cost of PPI, in the UK more than £1bn has already been reclaimed so there is still millions of policies out there that were mis-sold.
Capital One are one of the quickest for turning around PPI compensation on valid claims, typically it takes between 8-12 weeks but sometimes it can be much quicker. Some customers find a check in the post only a few weeks after their initial complaint.
We take much of the time and hassle of claiming PPI from Capital One away and deal with all the paperwork, chasing and details for you so all you have to do is spend a few minutes on the phone to one of our expert PPI claims handlers and sign a few forms.
For only a few minutes work on your part, several thousand pounds in compensation could be yours in as little as a few weeks.
If Capital One reject your PPI claim, we may want to send it off to the FOS who act independently and investigate your case. 90% of cases do not need the FOS and will be compensated, out of the other 10% more than 60% are successfully compensated after FOS help.
Typically Capital One customers receive several thousand pounds in compensation, because Capital One are the biggest UK bank we find they also have the most claims per customer so if you have one claim, you could well have several.
Most customers of Capital One who have PPI are owed around £3000 in compensation, this largely depends on how many policies were mis-sold to you and how long the policies have been in existence and of course the size of the premium attached.
Some customers get a few hundred pounds in compensation, some get several thousand and some get tens of thousands of pounds in PPI compensation for something that they didn't know they were paying for 12 weeks prior.
Usually Capital One are one of the quicker lenders at turning around PPI cases, the average is between 8-12 weeks but some customers have been lucky enough to find a cheque in the post within a few weeks.
Some who are not so lucky are rejected initially and referred to the Financial Ombudsmen Service who then acts independently to investigate the case on your behalf.
The FOS does add additional time to the case, this can be as long as 12 months but if using them means you will get compensation then it is well worth the wait.
Once Capital One make you an offer of PPI compensation and you accept, it then usually takes only a few days for the money to appear in your account though officially the lenders have 28 days to settle the refund.
Yes you can, many thousands of Capital One customers were mis-sold PPI on their credit cards and are eligible for a refund.
Usually credit card PPI has a slightly lower average compensation value than those who were mis-sold PPI on a loan, this is because the premiums are calculated dependant on the balance on the card.
Each month the PPI premium is calculated based on a percentage of every £1 that is owed, this would then be added on to the monthly interest fee payable.
As most people have several credit cards the amount of PPI you could be paying can easily stack up quickly, some of the biggest compensation pay outs we have seen have been on credit cards, held for a decade or more with several thousand pounds owed on the card for the life of the card.
Credit card PPI can be very lucrative, but also it can be only a few hundred pounds, either way get in touch and we can tell you more, after all a few hundred pounds for 5 minutes work is well worth it.