Claiming Ppi On Your Nationwide Mortgage: A Guide

If you have a mortgage with Nationwide and are looking to claim Payment Protection Insurance (PPI), there are a few things you should know. PPI is a type of insurance contract that can be taken out with a loan, credit card, or mortgage to provide protection in case of illness or redundancy. While the deadline for making a complaint about being mis-sold PPI has passed, individuals can still bring a claim against their lender due to a 2017 Supreme Court decision. This is because consumers were often unaware that a large proportion of their PPI premiums were paid to lenders as commission. These claims are called Plevin claims. In 2012, Nationwide set aside £103 million to compensate victims of loan insurance mis-selling, and they have since withdrawn all PPI products. If you want to make a claim or complaint about PPI on your Nationwide mortgage, you can do so by contacting Nationwide directly or through their website.

How do I claim PPI on my Nationwide mortgage?

Mis-selling of PPI

Payment Protection Insurance (PPI) was sold alongside mortgages, credit cards, and other unsecured loans since the 1990s. It was meant to cover payments on loans if customers fell ill or lost their jobs. However, PPI was mis-sold and complaints about it were mishandled on a massive scale for over a decade in the UK. This was done not only by banks or providers but also by third-party brokers. The sale of such policies was often encouraged by large commissions, as the insurance could make the bank/provider more money than the interest on the original loan. As a result, the profit from the loans themselves was little to none, with all or almost all of the profit coming from PPI commission and profit-sharing.

In 2014, a PPI claim from Susan Plevin against Paragon Personal Finance revealed that over 71% of the PPI sales amount was a commission, deemed a form of mis-selling. The Plevin case led to banks and the Financial Ombudsman reviewing even more PPI claims. A similar case in 2016, involving Mrs Potter and Egg Banking Plc, revealed that the bank had failed to disclose that it was retaining over 95% of the insurance premium as commission. This was also ruled as unfair under the 1974 Consumer Credit Act.

The Financial Conduct Authority (FCA) imposed a June 2019 deadline for customers to make claims for the mis-selling of PPI, allowing banks to draw a line under the PPI scandal, which had been going on for years. The FCA calculates that £24.2 billion has been paid out to consumers since 2011, with the total bill for handling claims estimated to be over £37 billion.

Nationwide Building Society was found to have breached Article 4 of the Payment Protection Insurance Market Investigation Order 2011 by providing incorrect information to PPI customers. Between April 2012 and December 2023, 131 customers with mortgage PPI policies were given incorrect information in their annual review statements. Nationwide has since withdrawn all its PPI products and has written to former policyholders who may have ended their PPI policy based on this incorrect information.

If you believe you have been mis-sold PPI on your Nationwide mortgage, you can make a complaint. You can also complain after the deadline if your PPI policy was still active on 29 August 2017 and your claim was rejected due to eligibility issues or limitations in the policy.

Nationwide's breach of Article 4 of the Payment Protection Insurance Market Investigation Order 2011

To claim PPI on your Nationwide mortgage, you can contact Nationwide through their online chat or by filling out a complaint form. You can also write to the court to transfer proceedings to your home court.

Now, coming to the specific issue of Nationwide's breach of Article 4 of the Payment Protection Insurance Market Investigation Order 2011, here are the relevant details:

The UK government's Competition and Markets Authority (CMA) found that Nationwide breached Article 4 of the aforementioned order by providing incorrect information to 131 customers holding mortgage PPI policies. This breach occurred between April 2012 and December 2023. The issue was specifically related to the annual review statements of these customers. The field indicating the amount of the monthly payment covered by the policy only included the mortgage element, excluding any additional cover the customer may have had. This incorrect information could have influenced the customers' decisions about keeping their policies. As a result, Nationwide withdrew all its PPI products and contacted affected former policyholders.

Additionally, Nationwide was found to have failed to send annual reminders to 15,442 customers as required by the Payment Protection Insurance Market Investigation Order 2011. Furthermore, 6530 customers received annual reminders with incorrect information regarding the annual cost of PPI. The CMA issued directions to Nationwide to ensure compliance, and Nationwide paid up to £2 million in refunds for these breaches.

Nationwide's compensation for victims of loan insurance mis-selling

Payment Protection Insurance (PPI) is a kind of insurance contract that can be taken out with a loan, credit card, mortgage, or other financing. In 2012, Nationwide, Britain's biggest building society, set aside £103 million to compensate victims of loan insurance mis-selling. This was in response to an increase in claims, many of which were deemed to be false.

Nationwide customers who believe they have been mis-sold PPI can make a complaint. The deadline for making a complaint about PPI mis-selling has passed, but it is still possible for individuals to bring a claim against their lender due to a Supreme Court decision in 2017. This is because consumers were often not told that a large proportion of the money they were charged in PPI premiums was paid to the lenders by insurance companies in commission. These claims are sometimes called 'Plevin' claims, after a case brought by Susan Plevin, who discovered that nearly 72% of her PPI premium was paid to her lender in pure commission.

Nationwide customers can also complain after the deadline if their PPI policy was still active on 29 August 2017 and they have had a claim on the policy rejected due to eligibility issues, exclusions, or limitations in the policy. The complaint must relate specifically to the rejection of the claim.

To make a PPI claim against Nationwide, customers can message the company through its online chat service or fill out a complaint form. It is also possible to engage the services of a PPI claim-back company to make a claim on your behalf.

Nationwide's PPI products withdrawal

If you have a PPI policy with Nationwide, you can make a complaint if you feel you have been given incorrect information. You can also complain if your policy was still active on 29 August 2017 and your claim was rejected due to eligibility issues or limitations in the policy.

Nationwide has been found to have breached Article 4 of the Payment Protection Insurance Market Investigation Order 2011 by providing incorrect information to 131 PPI customers between April 2012 and December 2023. The breach was caused by an error in the way its systems were set up. As a result, Nationwide has withdrawn all its PPI products and has written to former policyholders who may have ended their PPI policy based on the incorrect information.

If you want to make a complaint about PPI that is unrelated to the sale of PPI, such as delays in claims handling or administrative matters, you can contact Nationwide through their online chat or by filling out a complaint form.

To make a PPI claim on your Nationwide mortgage, you can go into your local branch and ask for a redemption statement. You can then transfer the money to your bank account and submit your claim.

Deadlines for making a complaint about PPI

The deadline for making a complaint about your PPI policy was 29 August 2019. If your mis-selling complaint was rejected after 31 December 2015, the PPI company will usually investigate the commission automatically. They will write to you if further action is required. If your complaint was rejected before this date, you will need to make a new complaint unless the company has written to inform you of an investigation into the commission. It is recommended to ask the company if you are unsure about what to do next.

You might not receive any money if you bought the PPI before 6 April 2007 and finished your payments before 6 April 2008. However, it is still worth making a complaint as the company will investigate and inform you of the outcome. You can also complain on behalf of someone else. It is free to make a complaint yourself, and you do not need a company to do it for you—these companies usually take a portion of the money you get back.

If you took out any kind of consumer loan, store card, credit card, or mortgage between 1990 and 2010, you may have been mis-sold PPI. Many instances of mis-selling involve cases where the fact that the insurance was optional or excluded pre-existing medical conditions and the self-employed was not made clear to customers. An estimated 64 million policies are believed to have been sold during this period, but only around 12 million people have claimed so far, meaning there are still millions potentially eligible for compensation.

The Financial Ombudsman Service may still be able to help if you couldn't complain earlier due to serious illness or other reasons, even if it has been more than six months.

Frequently asked questions