If you were using a store card in the Nineties or Noughties it could have PPI attached to it and you could be owed a refund if it was mis-sold.
Even more surprising is that you may be able to claim the money even if you tried to claim before and were rejected.
Rejected too hastily
Top journalist Iona Brain says: “Thousands of PPI complaints on old store cards may have been rejected too hastily.
“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.”
Not as popular
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Store cards are not as popular today as they were because of tough new legislation introduced in 2011 regarding commission and up-front discounts being attached to cards.
“But in the 1990s and 2000s store cards were routinely offered at the till and payment protection insurance was usually thrown into the bargain,” says Iona.
Stores
Among the stores who had cards were Dorothy Perkins, Top Shop, Debenhams, Burtons, Evans, Miss Selfridge, Wallis, BHS, Fenwick, House Of Fraser, Laura Ashley and Mothercare.
Many people are still using those cards today, unaware there is PPI attached to them, but successful claims for the mis-selling of the insurance have brought consumers tens of thousands of pounds in compensation.
Paid out
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Ms Brain cites a case where Santander paid out £24,207 on a Debenhams store card taken out in 1989, despite the fact it had been rejected six months earlier because the claim had been made against the bank and not the underwriter who created the policy.
As in all cases with credit and store cards, PPI is paid on the balance held on the card, but it is also subject to interest payable on the amount, usually calculated at a nominal 8%.
Problem
But making a complaint is not as straightforward as writing to the store and asking for your money back.
Because of the way cards were sold before 2002, the claim would need to be made against the company which actually provided the credit because they were responsible for ensuring it was sold properly.
Rejected
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If a PPI claim is rejected it can normally be appealed to the Financial Ombudsman Service (FOS) who are an independent body set up to adjudicate disputes where consumers and lenders cannot agree.
But with older store card cases the matter may have to be referred to the underwriter and, if rejected, the matter might then be able to be referred to FOS under the rules of the General Insurance Standards Council which can examine cases as far back as the 1980s.
Were you mis-sold?
PPI was mis-sold in a number of ways and more than one may apply to you:
- It was added without your knowledge or consent
- You were led to believe it was something you had to have as part of the deal, rather than an option
- It was sold to you when you didn’t need it – like being covered by full sick pay from an employer – making it an unnecessary cost
- You were a student, unemployed or retired because the policy would not pay out if you weren’t receiving a wage
- Exclusion clauses weren’t disclosed, meaning pre-existing medical conditions present upon buying PPI that would void any payout were disregarded
Total PPI payout
Latest figures from the Financial Conduct Authority (FCA) reveal that the overall PPI payout since January 2011 has now broken the £26 billion barrier with £242.1 being paid out in November last year, keeping up the average of over £¼ billion a month over the last year.
“Making a complaint is not as straightforward as writing to the store and asking for your money back.”
