The popularity of Payment Protection Insurance nowadays can be credited to a number of negative publicity it gained. Despite its good intentions when introduced to the market over a decade ago, PPI has never done anything yet to prove itself right. And when the massive mis-selling scandal was discovered, it has gone farther down the drain, bearing mud to its name. To date, PPI claims have been making a lot of people in the financial services industry busy, with the demands for review and mis-sold policy compensation flowing freely through their doors.
Payment Protection Insurance, in a nutshell, has been created to protect consumers from missing out their payments. When taken alongside a loan, credit card, or mortgage, the consumer is assured to have some sort of security fund that will cover their obligations while they are recovering from a prolonged sickness, accident, or trying to find a new job to sustain their cost of living. Unfortunately, banks have devised a lot of mischievous ways of selling the product to millions of their consumers, causing a massive number of complaints going their way following a High Court ruling.
If you were ever one of the people who believe to be mis-sold Payment Protection Insurance, your chance to reclaim the payment you made to it is here. You can do it on your own or have a PPI claims expert assist you with the process.
To begin your claim, you need to establish first if you have PPI on any of your credit accounts. You may have signed up for it together with a credit card, loan, or mortgage, or you could have bought one for each. Look through all your account related documents to find references to how much it has cost you so far and how long you have had it sitting there, accruing interest. These sets of paperwork will serve as your proof when you make the claim.
Given that you’ve got it all together, write now to the bank that sold you PPI and tell them that you demand a review of your account on grounds of mis-selling. How will you know there was some sort of mis-selling when you were signed up to PPI? Here are a few questions you can answer:
• Did the insurer, bank or credit card company not mention that PPI was optional?
• If for an insurance policy – Did they mention any exclusion, including pre-medical conditions or retirement?
• Did they neglect to tell you that interest was payable on PPI costs?
• Did they state that the policy could expire before you paid for the loan?
• Did your bank, credit card company or insurer hard sell or push the PPI coverage?
• Did they add PPI to your contract without your knowledge?
If you answered YES to any or all of it, you are most certainly tricked into buying PPI. Attach the evidence you gathered to the claim letter and then let your bank review it for a few weeks – 6 or 8 in general.
Do not be worried that the bank may not entertain your claim. They are bound by the law to investigate the case and do something to resolve it within the general turnaround time. Delays may happen if the case lacks sufficient proof but nonetheless, you’ll have to be informed of what has gone on.
If your bank fails to contact you after the review or they rejected your claim even though it was evident that PPI was mis-sold to you, don’t think yet that you’ve reached a dead end. The Financial Ombudsman Service can help you further. Lodge a complaint against your bank and let the FOS handle it. They’ll ask further question to your bank to find out what went on during the investigation and what led them to plainly fail to send you a notice.
When your claim is upheld, you can expect a notification from both the FOS and your bank, where the latter is required to set things straight and give you a refund of the payment you made to PPI, including the interest it incurred while it was sat on your account.
It is true that the banks have set aside billions of pounds to compensate their customers on the account of mis-selling PPI. If you’re sure that you were a victim of this scandal, do something to clarify it now and make things better for you.