Payment protection insurance or PPI is an insurance that provides cover against the outstanding payments like credit card dues, utility bills and more, in case the subject faces illness, accident, job loss or any other kind of financial problems. However, the banks and the financial institutions sold payment protection insurance in an illicit manner to the millions of customers, giving this financial tool a bad name. The problem is not with the policy or its coverage, but in the way it was sold.
Most of the times the customers never knew they were paying towards PPI on each of their premium fees and many a times, the customers were told by the company’s representative or the agents that buying PPI is necessary to get the loan or that applying for the payment protection insurance will increase the chance of the loan approval. However, all these claims and points are not actually true, but the agents continued with it anyways as it added to their commission and the profits of the bank. However, due to stricter regulation around the PPI sell nowadays after the customers raised their opinions, the banks in the UK put aside 4 million pounds for the refund of PPI claims.
It’s also not easier now a days, as earlier to sell payment protection insurance without the customers knowing and acknowledging they are buying PPI out of their own will. If you suspect that you have been mis-sold PPI or if you have found out that you have been paying towards PPI that has been sold to you inappropriately, then here are the following tips you need to follow to reclaim your PPI amount.
Validate Your Have been Sold PPI Inappropriately
First of all confirm that you have payment protection insurance. This can be done by going over the insurance paperwork and documents. If your policy is of between 2005 and 2011, there is an 85 percent chance to claim the PPI premiums successfully. Many companies charge nominal amounts to furnish you with policy documents, in case you have misplaced or lost the policy documents. Once you have confirmed that you have the PPI coverage, verify if your claim is appropriate or not. Were you told that PPI is optional? Were you told that taking PPI is mandatory? Were you told that taking PPI was necessary for loan approval? Were you never told that you are being sold PPI? Were you told the tenure of the payment protection insurance and that it may expire before the policy matures or expires? If your answer is “yes” for any of the above questions, then your claim is legitimate. You can calculate the claim amount by using the PPI calculator at http://www.freeppicalculator.co.uk.
Is There any Deadline for Claiming PPI?
There is no absolute deadline, but it is easier to claim the PPI premiums successfully if the loan was in the active state in the last six years. There are several guidelines that make it difficult for the claims of before six years to be made successfully, but it is certainly not impossible and might require legal assistance in certain cases.
PPI Sold Under Different Names
In many loan documents and credit card statements, the PPI is named by banks and institutions with different names, such as payment cover, loan care, protection plan, ASU and loan protection coverage. If you see any of these terms or something similar, then it is payment protection insurance. You can even get it confirmed by contacting the bank, and they are obliged to answer you correctly.
Claiming PPI – Process in Brief
You can write a letter to the organization itself and they will revert back within eight weeks. If your claim is accepted the payments will be refunded in the due time, but if your claim is rejected you can contact the Financial Ombudsman Service and send them a formal letter with all the relevant details about the PPI, how it was mis-sold, and the rejection letter from the bank. If FOS denies your claim as well, the final way is to file a claim in the court of law with the help of a lawyer, but that can be expensive.