Are banks exploiting loopholes to reject PPI complaints?

Iona Bain

Thousands of PPI complaints on old store cards may have been rejected too hastily. But shoppers can get the compensation they deserve thanks to a secret hack.

Shoppers who were persuaded to take out credit with major high street chains like Topshop and Debenhams before 2002 were often mis-sold PPI policies and could be owed compensation – even if they’ve already been rejected.

The Mirror can reveal that one major provider – Santander UK – initially threw out complaints.

But there is a way to get what’s rightfully yours – complain directly to the underwriters.
 
This clever trick is already being used to force banks to pay out on PPI complaints that were previously dismissed. In one case, a client managed to get a whopping £24,000.

We explain how PPI was wrongly sold on store cards and how to get redress – whatever you’ve been told already.

What are store cards?

Store cards used to be very lucrative for high street chains. They were sold as a line of credit for customers who couldn’t – or didn’t want to – pay in one go. Retailers made a profit on those who failed to pay off the card’s balance each month, as this resulted in an interest charge set between 18% and 30%.

Store cards are not as popular these days, partly because tough regulations were introduced in 2011 to prevent shoppers falling into debt. The Government banned commission and upfront discounts being attached to store cards, as well as allowing a seven day cooling off period after any store card sale.

But in the 1990s and early 2000s, store cards were routinely flogged at the till – and payment protection insurance was usually thrown into the bargain.

Was I mis-sold PPI on a store card?

Unless you have been living under a rock, you probably know that PPI was meant to cover payments on financial products like mortgages or credit cards should the user lose their income through illness or redundancy.

However, it was horrendously mis-sold and banks were forced by a High Court ruling in 2011 to offer compensation to all affected customers. Since then, about 13 million complaints have been made.

So if you were sold a store card many moons ago, a complaint about mis-sold PPI could well be justified – if it hasn’t been brought already.

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