No Win No Fee PPI Claims Explained
No win no fee PPI claims allow you to find out about your eligibility for claiming PPI without risk of financial involvement. Many PPI claim companies offer the ‘no win no fee’ arrangement and in this article we’ll take a deeper look at what it is, explaining how it works and things you should look out for.
Emphasis Is On “No Win”
The phrase “no win no fee PPI claims” is intended to be self explanatory, but some people get confused by it on occasions. It’s not helped by the fact that some companies claim to operate on a no win no fee basis, but then lump on hidden charges or other nasties in the small print of the agreement.
Assuming the no win no fee deal you’re being offered is transparent and kosher, then it simply means you can start your PPI claim and if, for whatever reason, you don’t win a refund, then you pay nothing for the service received.
Zero, zip, nada. Regardless of how much time and effort was put into your claim in order for you to find that out.
Why Might You Not Win A PPI Refund?
The reason for not winning a refund on your PPI claim could simply be because you didn’t have PPI, even though you thought you did. Or it could be that you do have PPI on one of your loans or credit agreements, but that it wasn’t mis-sold.
It can be easy to think that if you have PPI, it must have been mis-sold, such is the scale of the scandal. Many payment protection insurance policies, however, were sold in line with rules, regulations and guidelines and were also in the best interests of the consumer.
When you start your PPI claim, you begin by completing a PPI claim form where you answer a series of questions. It might be, for example, that one of your answers indicates that you knew what you were getting and that you agreed to it.
Either way, if you enter into a no win no fee agreement on your PPI claim and you don’t win a refund, you shouldn’t pay a penny for the service you received.
When Your PPI Claim Will Be Subject To A Fee
As we’ve seen, no win no fee PPI claims only refer to cases where you:
A. Don’t have PPI, or
B. Do have it, but it was sold fairly (it wasn’t mis-sold)
So what about situations where you do have PPI, it was mis-sold and you win a refund from your bank or lender?
In these instances, there will be a fee payable to your PPI claim company for the service you receive. Some people search for PPI claim companies that will do the work and then let the claimant (you) keep 100% of the refund. All we can say in that instance is ‘Good luck with that!’
That would be like going into a restaurant and enjoying a delicious meal along with first class table service and then expecting to walk out without having to pay a penny. Any restaurant that will do that for you won’t be in business for very long.
In the same fashion, you should expect to pay a percentage of your PPI refund in exchange for the service you receive.
An Important Point to Be Aware of
There’s one important point we want you to be aware of before deciding to instruct a PPI claim company to handle your claim for you.
If you currently owe your bank any money, it’s possible that they will simply divert your PPI refund towards paying off that debt. That means you won’t physically receive any money from them, either in the form of a cheque or a bank transfer paid directly into your account.
If this happens, you will still owe the PPI claim company that handled your claim the amount you agreed to prior to starting your claim, which means you will have to pay that fee yourself.
It’s worth keeping this in mind as it’s important you don’t land yourself in more financial difficulty than you’re already in, assuming you are in debt to your bank. No win no fee PPI claims are attractive because they remove the risk for you, but on the other side of it, there is a fee for successful claims and that fee might not come out of your refund.
Free Advice On No Win No Fee PPI Claims
A good PPI claim company will be happy to answer your questions without charge and with no obligation to pursue your claim through them if you choose not to.
That’s what we offer, so if you have questions about no win no fee PPI claims – or any other PPI questions for that matter – get in touch and we’ll help you out – without charge and without obligation.
Other Common PPI Questions
In addition to wanting to know about no win no fee PPI claims, there are a few other questions related to claiming PPI that pop up more often than others. We’ve already covered them in separate articles, which you might also be interested in:
How far back can you claim PPI? There’s a lot of misunderstanding around the rules of when you can or can’t claim on mis-sold PPI. As a result, many people are leaving money sitting on the table. This article will help you to avoid being one of them.
How much am I owed from mis-sold PPI? When you have an idea of what you can expect to win back, you’ll know if your bank has made an error when they offer you a refund. This article will help you calculate what you are likely owed from mis-sold PPI.
How do I claim PPI without paperwork or my account numbers? If you no longer have your paperwork and you’ve forgotten your account number, all is not lost. This article tells you what you need to know.