Aa Finance Ppi Claim - Financial Steps

Payment Protection Insurance (PPI) was a product widely sold alongside loans, credit cards, mortgages, and other credit agreements. It was designed to cover repayments if the borrower became ill, unemployed, or had an accident.

AA Finance, like many financial institutions, sold PPI policies. However, widespread mis-selling occurred. Many customers were unaware they were being sold PPI, or were misled about its benefits and exclusions. Common mis-selling practices included:

Being pressured into taking out PPI: Sales staff might have implied that the loan or credit application was more likely to be approved if PPI was included.
Not being informed about the policy: Customers weren’t always made aware of the full terms and conditions, including exclusions and limitations.
Being sold unsuitable policies: Some customers were ineligible for PPI benefits, such as the self-employed or those with pre-existing medical conditions, yet were still sold the policy.
Not being offered alternative options: Customers may not have been informed that they could purchase PPI from other providers.
Commission incentives: Sales staff often received high commissions for selling PPI, incentivizing them to prioritize sales over customer needs.

If you believe you were mis-sold PPI by AA Finance, you were entitled to make a claim for compensation. The deadline for submitting a claim through the official Financial Conduct Authority (FCA) scheme was August 29, 2019. While this deadline has passed, there are still limited circumstances under which you might be able to claim.

Options after the deadline:

Plevin Ruling: You might still be able to claim if the commission AA Finance received from selling the PPI policy was excessively high and not disclosed to you. This is based on the Plevin ruling, which established that undisclosed high commissions could constitute an unfair relationship between the lender and the borrower.
Exceptional Circumstances: If you had a valid reason for not claiming before the deadline, such as a serious illness or being unaware of the mis-selling, you may be able to appeal to the Financial Ombudsman Service (FOS). This is assessed on a case-by-case basis.

Gathering Evidence: To make a claim, you’ll need to gather as much evidence as possible. This includes:

Loan agreements or credit card statements showing PPI premiums.
Any documentation relating to the PPI policy itself.
Details of the sales conversation, if you remember them.
Evidence that you were ineligible for the policy’s benefits.

You can contact AA Finance directly to request information about your PPI policy. If they refuse to provide the information or reject your claim, you can escalate the matter to the Financial Ombudsman Service (FOS). The FOS is an independent body that resolves disputes between consumers and financial institutions.

While the main PPI claim deadline has passed, exploring the Plevin ruling or appealing due to exceptional circumstances may still offer a path to compensation if you were mis-sold PPI by AA Finance.