Payment Protection Insurance was introduced to the financial services industry more than a decade ago as an aide for credit consumers. It was created to protect their debts from getting in arrears by covering a part of their repayment obligations in the event that they got sick for a long time, had an accident, or were made redundant at work, making them unable to earn and pay their dues. Unfortunately, the horrors of having signed up to PPI appeared when the mis-selling scandal was discovered. Millions of consumers were shocked to have realised they were deceived only to buy a policy that was useless and only put their financial status in a risky situation.
If you were one of these people who have been subjected to the PPI mis-selling scam, you most likely have the chance to save money by reclaiming your Payment Protection Insurance payments. PPI claims can be made by people on their own or through the assistance of experts and advisers.
To get things started you may need to find out first if you have PPI alongside any of your credit agreements with the bank. To do this, check your statements and your account documents for PPI indicators. The paperwork would specify charges for such and the policy certificate would state how long since you’ve had it. It is important that you have kept these documents safe as they could serve as strong evidence to your claim.
Once you have the paperwork ready, write to your bank about the mis-selling for them review. Normally, a legitimate sale of Payment Protection Insurance would have to have you informed of the following:
PPI is optional. It doesn’t come as a compulsory insurance with any finance agreement.
The insurance costs should have been clearly explained.
The full cover should have been itemised for you.
Pre-existing medical conditions are not covered.
Individuals below 18 and over 65 are not eligible for insurance cover.
Self-employed, employed in a family business, retired, and nearly-retired individuals are not covered by the policy.
Students are not covered by the insurance.
If these were not discussed thoroughly with you, then there was something wrong in the way you were made to buy PPI.
When the bank receives your reclaim letter, they will investigate the case in a matter of 6 to 8 weeks. It may take longer of you have not attached a sufficient amount of evidence or there were not enough available information for them to refer to. Remember that banks can only store account details in their database for as long as six years following the activation of your account or the date of the last payment made to the debt. This is why paperwork is very necessary to weigh how valid your PPI claim is.
The bank will let you know of their decision after such time and if valid, they’ll arrange for compensation immediately. However, if they decided otherwise, or you have not heard from them at all, you can take the matter up to the Financial Ombudsman Service who will take over the review to find out what went on at the bank. The Ombudsman will contact your lender and make further enquiries. You may also be asked to send in additional documents and information about your claim.
As soon as they have decided to uphold your claim, the bank will be required to give you a full refund of the PPI payments you made, plus the interest it has gathered from the start.
So, if you have every reason to believe that you were a victim of the PPI mis-selling scandal, do not hesitate to make an action to clarify and resolve it for your (financial situation’s) sake. A lot of consumers have been successful at making PPI claims and you should not be letting this chance pass up just like that.