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It is estimated that The Royal Bank of Scotland has sold between 1.6-2.4 million Payment Protection Insurance policies. It is not known how many of these policies may have been mis-sold, but the lender is estimated to have paid out £200 million with another £850 million set aside to compensate customers.

RBS PPI is designed to cover a policyholder if they are unable to work due to accident, sickness or involuntary unemployment. The cover works by stepping in to cover the borrower’s repayments until they are able to return to work. It is traditional sold alongside loans, mortgages and credit cards.

The cost of RBS PPI is applied differently depending on the product it is sold with. RBS loan insurance is typically charged for as a lump sum which would then be added to the customer’s loan instalments and paid back along with the original debt.

The cost of loan PPI can vary considerably depending on the lender, but it typically costs between 13-25% of the original debt. On a £8,000 debt, therefore, you could pay between £1,040 – £2,000. The cost of loan PPI usually attracts interest at the same rate as the loan itself.

With regard to credit card PPI this is usually charged on a monthly basis depending on the total outstanding balance. Most credit card PPI costs in the region of 70p per £100 outstanding. This means if you owe £8,000 you may pay around £63.20 per month for the cover.

If you have an RBS PPI policy you may be unsure whether your policy has been mis-sold and whether you can make a PPI reclaim. As a general rule, a policy can be considered mis-sold if your lender failed to fully explain the cover or sold you a policy that you were unsuitable for.

Were you given full information regarding your policy?

In order to evaluate whether you wanted or needed the PPI cover your lender should have given you full and frank information regarding the policy. This should have included a full explanation of the costs and the terms and conditions. It is vital the information was accurate and not misleading.

If your lender told you something at the point of sale that later proved to be incorrect or you were not given adequate information this could be grounds for mis-selling.

Were your circumstances fully considered before you were offered PPI?

Not everyone can be covered by PPI and there are many circumstances that would make a person unsuitable for the cover. The majority of PPI policies, for example, do not offer cover to people over the age of 65. This is because people over this age are, generally, considered to be a higher insurance risk. Most policies also do not cover people who are self-employed or have pre-existing medical conditions.

Other people may have limited use for PPI cover for example if you were entitled to full sick pay from your employer or had cover in place elsewhere.

If your lender did not fully consider your circumstances and suitability for the cover this could be grounds for mis-selling.

To find out more about making a claim for PPI mis-selling call 0207 471 2000.

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Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website number 18273

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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