Can You Claim PPI On Behalf of the Deceased?
Adverts and advice about claiming your PPI money are everywhere. We are bombarded with them every day, and now that the government has imposed a deadline (29th August 2019), there are even more of them.
PPI stands for ‘payment protection insurance’, and was a specific insurance policy that many people (most unknowingly) took out against debt. It was often sold alongside loans or on credit cards. The policy was in place to protect the owner if they were unable to repay debt due to illness, being unable to work, or a variety of other factors. Premiums were paid every month, and the entire scheme was a method of self-protection.
Some time ago, however, it was found that many of these policies had been mis-sold and, if they were to be claimed on, wouldn’t be valid. Therefore, schemes were put in place to return the money paid through PPI to those who had paid it. This is why you will see so many advertisements for companies who will do this for you. They will take a percentage of the money that you get back in return for contacting every financial institute that you had dealings with, to see if there is any money to come back to you.
But what about the deceased? Can anyone claim for PPI on their behalf and have the money returned to the estate?
The answer is yes, in most cases, it is possible to claim for PPI for someone who is deceased. It is even possible to claim for someone to whom power of attorney has been transferred. Someone – the executor usually – can file a claim against the institutes who received payments for PPI. When someone dies, debts will be paid off through the estate, and if there was PPI on them, that will be paid off too, usually without anyone realising that the outstanding debt included it.
It is important for those who are executing the estate to find out whether PPI was included. This is potentially a big job and this is why it can be useful to contact a professional company in order to have them carry out the investigation for you. This means you can carry on with the other duties of being executor and simply receive the PPI repayment into the estate when it comes.