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Welcome PPI

If you have taken out a loan through Welcome Finance it is likely you may also have been sold payment protection cover.

Payment Protection or PPI is a type of cover designed to take over loan repayments if you cannot work due to involuntary unemployment, sickness or accident. The cover has become increasingly controversial; however, as it has emerged it has been widely mis-sold. Welcome PPI is thought to have been sold to around 500,000 of its customers and, although it is impossible to estimate how many of the policies may have been mis-sold, it is possible the number could run into the thousands.

In 2010 the Financial Services Authority received a record number payment protection insurance claims. Complaints regarding mis-selling have been levelled against all major banks and building societies as well as many smaller brokers and some independent financial advisors.

It is difficult to pinpoint the exact cause of the mis-selling issue, but many people have blamed lenders for over-incentivising staff with high rates of commission and failing to provide adequate training or put in place adequate processes to protect customers from being mis sold PPI.

If you are unsure whether you're Welcome PPI policy was mis-sold you may find the checklist below helpful. It details some of the most common ways in which the cover was mis-sold.

  • The policy was added without the customer’s knowledge or consent.
  • The policy was sold without the full terms, conditions and/or costs being explained.
  • The customer was sold the policy even though they were not suitable for the cover because of their age (most PPI policies do not cover customers under 18 or over 65.)
  • The customer was sold the policy even though they had a pre-existing medical condition that made them unsuitable or they were incorrectly told the insurance would cover that pre-existing condition.
  • The customer was sold a policy even though they were unemployed, retired or in full time education and, therefore, could not use the involuntary unemployment portion of the insurance.
  • The customer was wrongly told taking out PPI would improve their chances of being approved for the loan.
  • The customer was wrongly told PPI was compulsory.
  • The customer was pressured into taking out the cover.
  • The customer was sold a single-premium policy, but was not told it may not cover the life of their loan. Single-premium policies typically only last five years. If your loan was for a longer term you may not have been fully covered.

If you believe you have been mis-sold a Welcome PPI policy then you are entitled to make a claim. Whether you receive compensation will depend on the it can be proven your policy was mis-sold. The amount of compensation you could receive will depend on the size and age of your PPI policy. You can make a claim even if your loan is paid off.

In March 2011 Welcome announced it was no longer in a position to financially settle its own claims. As a result, claims against Welcome are now being handled by The Financial Services Compensation Scheme.

To find out more about making a claim against Welcome Finance 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 www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit 16, Elysium Gate, 126 New Kings Road, London, SW6 4LZ and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

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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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