When a loved one passes away, their nearest and dearest are often left dealing with numerous “loose-ends”, including the valuation of their estate, the distribution of assets and the settling of any outstanding debts.  When settling these debts however, it is important that you examine whether or not there were any insurance policies that may have been taken out alongside them that could have been mis-sold.

As many people now realise, policies designed to insure against the repayment of debts should such circumstances arise in which they could not be met, were often mis-sold leading to claims being made to recoup this money back. Read on to find out whether or not you can claim any mis-sold PPI taken out by someone close to you who has since passed away.

Importantly though, if you intend to claim the mis-sold PPI of someone who is now deceased, you must begin your claim by Thursday 29 August or it will no longer be accepted. The only other course of action thereafter would be going to court, which comes with its own expenses and complications.

What is PPI?

PPI stands for ‘payment protection insurance’. It is an insurance policy often sold alongside credit cards, loans and other finance agreements to make sure payments are still made if the borrower is unable to make them, usually due to sickness or unemployment. Sometimes, people mis-understood the rules when taking out PPI, meaning people have paid premiums for years for policies on which they were unable to claim. Others signed up to policies with age and health restrictions that were unsuitable for them, making them ineligible from actually claiming. People have had policies for years with problems only being noticed after they have passed away and it comes to executing their will.

What exactly counts as Mis-sold PPI?

PPI was mis-sold if:

• The customer was told PPI was compulsory.
• PPI was added without permission.
• The customer was told it would result in less debt.
• Selling PPI was inappropriate, eg: you were already covered through another policy or had a pre-existing condition that invalidated it.
• The Plevin rule applies. This rule surrounds a breach fairness rules in relation to the Consumer Credit Act This is in relation to policies active in or after 2008 where commission banks were paid over 50% and you weren’t told. This was a very common occurrence and the customer is entitled to reclaim the difference back.

Mis-sold PPI could have been taken out in conjunction with:

• Pensions
• Mortgages
• Loans
• Credit cards
• Store cards
• Catalogue accounts
• Life insurance

Can I Claim PPI for my deceased Relative?

In many cases a child can claim PPI for a parent when they have passed away or take on lasting powers of attorney. The child is able to file a claim against PPI company in order to pay outstanding debts as implied by the policy. Money from the claim will not be given to the child but used to repay debt repayment on outstanding loans, credit card debt and/or other approved debts.

Sometimes children pay off their parents debts, unaware that they carried PPI policies meaning that these payments could be reimbursed by following the correct channels. The first step would be to ensure that policies were not mis-sold. Seeking the advice of your probate solicitor would be a good first step.

Who can reclaim for a deceased relative?

You are able to make a claim for mis-sold PPI if:

• There is a will and the executor can show the bank the Grant of Probate.
• There is no will but the administrator can show the Letters of Administration.
• The estates is valued at under £5,000 in England, Wales and NI or £36,000 in Scotland and the next of kin can show proof of their relationship to the deceased with proof it was a small estate.

If there is no  paperwork relating to the deceased’s estate, then as the executor/administrator you are entitled to acquire it.

To find out what lender(s) they were with you can get their credit file from one of the credit reference agencies. When you have found out who the lenders were, you are entitled to request the paperwork and see if they had PPI.

For more information on how to plan your estate and assets beyond life, please visit Wills&Probate.rip