PPI claim checks

21 June, 2019

The deadline for making a claim against the mis-selling of payment protection insurance (‘PPI’) is just over two months away (29 August 2019).

With this date fast approaching, there has been increasing discussion as to whether executors should make a PPI claim on behalf of the estate.  The same also applies to attorneys and deputies, as well as trustees in bankruptcy.

The Financial Conduct Authority (‘FCA’) is encouraging people to make a claim, even if they are not sure whether there was PPI. Where there was PPI, it is very likely that a claim will be successful.

What information is required to make a claim?

The FCA has confirmed that only a person’s full name, date of birth and address (at the time they had PPI) is required to identify if a right to a claim exists.  All known addresses since 1999 should be provided.

How to make a claim?

Claims can either be submitted directly with the financial institution with which the deceased was associated or via a claims management company, which will be able to check with a large number of providers.

Consequences of unclaimed PPI awards

It is suggested that once the deadline has passed, claims management companies may shift their focus to where PPI refunds have not been claimed.

The grounds for potential claims against executors would be the failure in their duty to collect in the assets of the estate, namely the a PPI award. If the situation is not investigated fully, they may be liable to compensate the estate for any loss.

Executors should also consider making claims where the estate has already been fully administered. The Official Receiver, who deals with bankruptcies and insolvencies, recently announced that it “is seeking to claim outstanding PPI awards available in bankrupt estates to ensure creditors receive assets owed” as far back as January 2000, and executors (or anyone else managing assets on behalf of another person) may therefore feel they should do likewise.

It is less straightforward where a professional adviser is advising an executor; consideration has to be given to the time and expense it will cost to keep files open whilst claims are being investigated versus the potential reward from the claim.

However, it is clear that this is something that should at least be considered by all those managing assets on behalf of someone else.

If you have any further questions regarding a potential PPI claim, please get in touch with Ray Bennett at ray.bennett@crippspg.co.uk.