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Natwest PPI Claims

Why You Can Make A PPI Claim Against Natwest

  • Did Natwest explain the full cost of the PPI when you took out the loan?
  • Did you specifically ask Natwest for PPI?
  • Did Natwest make clear that PPI was optional?
  • Did Natwest ask you about your medical history?
  • Did Natwest ask you about any existing payment cover?
  • Did you know that Natwest added a PPI policy to your loan?
  • Do you think Natwest treated you fairly?
  • Did Natwest ask if you have any existing medical conditions?
  • Did Natwest ask if you were entitled to sick pay from your employer?


In the last few months the financial news has been full of stories regarding the mis-sale of Payment Protection Insurance. A recent High Court ruling has been widely viewed as a huge victory for consumers, but what is PPI and how was it mis-sold?

In 1998 Which? first highlighted what it saw as grave issues with Payment Protection Insurance with their current research claiming as many as two million policies may have been mis-sold. Following the Which? exposé The Citizens Advice Bureau began its own investigation launching a ‘super complaint’ in 2005. The complaint alleged that many lenders were selling cover that was over-priced and offered poor value for money. It also expressed concern that policies were being frequently mis-sold.

PPI is sold by most banks, such as Natwest, as well as by the majority of Building Societies and Credit Card companies. It is suppose to protect a borrower who is unable to work for a short period of time as a consequence of redundancy, sickness or accident by stepping in to cover repayments. Many people, undertaking significant borrowing, feel the cover is an essential form of protection, but statistics revealed by The Competition Commission show that very few people are able to successfully use this type of cover. As little as 15% of those who try to use their loan protection insurance are successful while for those with credit card PPI it can be as low as 11%. Considering the cost of the policies, which can be as much as 56% of the base loan value, it is plain to see why the sale of the cover has caused such concern.

In 2006 The Office of Fair Trading and The Financial Service Authority (FSA) launched official investigations and found many problems throughout the industry. Many larger lenders faced fines as a result of significant failings in the way policies were sold and sales were regulated.

Since 2006 the number of payment protection claims has risen steadily each year. In the second half of 2010 the FSA reported 87,271 complaints regarding Natwest. The significant increase was blamed on a 63% uplift in the number of PPI claims. The reasons customers believe their policy was mis-sold can range quite significantly, some examples are listed below.

  • The customer feels they were put under undue pressure to take out the cover.
  • The customer was incorrectly told taking out payment protection insurance would increase their chance of being given the loan.
  • The customer was sold the cover without the terms and conditions being fully explained.
  • The customer was sold the cover even though their circumstances made them unsuitable. E.g. the customer was over 65 and was sold a payment protection policy that did not cover people over this age.
  • The cover was added without the customer’s knowledge.
  • The customer was sold a policy despite having cover in place elsewhere.
  • This list is not exhaustive and there are many other reasons customers feel they have been mis-sold policies.

The recent high court ruling has ensured PPI has been back in the headlines. The argument settled on new FSA guidelines to protect the consumer from future payment protection mis-sales. Many lenders objected to the guidelines as they felt they would unfairly force them to examine old sales against new rules. Whilst the judgement was pending many lenders, including Natwest, put all claims on hold. In April 2010 the High Court’s verdict was returned finding in favour of the FSA. Since this most recent development it is hoped that banks will now move to rapidly resolves claims caught up in the backlog. To assist them with this process, the Financial Ombudsman Service has granted them an extension to the usual eight weeks allowed to examine complaints. For a limited period of time lenders may have up to sixteen weeks to investigate certain claims. Another positive development to come from the High Court ruling is the allocation of funds by five major banks to deal with payment protection complaints. One of these banks is The Royal Bank of Scotland who own Natwest. The bank has announced the allocation of £850 million in addition to the £200 million it has already paid out or set aside

The recent changes mean there has never been a better time to make a claim. There is no limit to how many PPI refunds you can claim and making a complaint will not affect your credit rating or relationship with your bank. For more information call our team on 0207 471 2000.

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Belmont Thornton Limited is regulated by the Financial Conduct Authority in respect of regulated claims management activities; FRN:838450

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

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