Citroen Finance PPI Claims: Understanding Your Rights

Payment Protection Insurance (PPI) was widely mis-sold alongside financial products, including car finance agreements offered by Citroen Finance. If you financed a vehicle through Citroen Finance and had PPI attached to your agreement, you might be eligible to claim compensation.

What is PPI and Why Was it Mis-sold?

PPI was designed to cover loan repayments if you were unable to work due to illness, accident, or unemployment. However, it was often mis-sold in several ways:

• Lack of Awareness: Customers were unaware they were even being sold PPI.
• Coercion: Customers felt pressured into taking out PPI, believing it was mandatory for loan approval.
• Unsuitability: PPI was sold to individuals who were ineligible to claim, such as the self-employed or those with pre-existing medical conditions.
• Failure to Explain: The terms and conditions of the policy were not clearly explained, leaving customers unaware of limitations and exclusions.
• High Commissions: Sales staff prioritized commission over the customer’s best interests.

Determining if You Had PPI with Citroen Finance

Here’s how to check if you had PPI on your Citroen Finance agreement:

• Review Your Documentation: Check your original car finance agreement and any related documents for mentions of PPI, Payment Protection, or similar insurance products.
• Bank Statements: Examine your bank statements for payments to Citroen Finance that might include PPI premiums.
• Contact Citroen Finance: If you can’t locate your documentation, contact Citroen Finance directly. They are obligated to provide information about your past agreements. Be prepared to provide details such as your name, address, date of birth, and vehicle registration.

Making a PPI Claim Against Citroen Finance

While the official PPI deadline has passed, claims can still be made under certain circumstances. These circumstances generally involve demonstrating a “Plevin” unfair relationship. This refers to the 2014 Supreme Court case, Plevin v Paragon Personal Finance Ltd, which argued that excessive commission charged on PPI policies made the relationship between lender and borrower unfair.

To pursue a Plevin claim, you’ll need to show that a significant portion of your PPI premium went towards commission for the lender. The financial institution is required to disclose the commission they received. If the commission was high (typically exceeding 50%), you may have grounds for a Plevin claim.

Steps to Take:

1. Gather Evidence: Collect all available documentation related to your Citroen Finance agreement and PPI policy.
2. Request Information: Contact Citroen Finance (or their current administrator) to request details of the commission earned on your PPI policy.
3. Assess Your Claim: Determine if the commission was excessively high. If so, you have a basis for a Plevin claim.
4. Submit Your Claim: File a formal complaint with Citroen Finance (or their administrator). Be sure to clearly outline the reasons for your complaint and provide supporting evidence.
5. Financial Ombudsman Service (FOS): If your complaint is rejected or you are unhappy with the outcome, you can escalate your case to the Financial Ombudsman Service (FOS). The FOS is an independent body that can adjudicate disputes between consumers and financial institutions.

Seeking professional advice from a claims management company or legal professional can be beneficial, particularly when navigating the complexities of Plevin claims. Remember to carefully research any third-party service before engaging their services.