Payment Protection Insurance has been in the news in the past few years for many wrong reasons, even though it is actually a legitimate tool to protect people pay towards their outstanding loans and debt, in case of loss of job, loss of income, hospitalization, physical inability, financial loss, and so on. The reason behind this is that many companies and banks wrongly sold the PPI to the customers without informing them, while at many times sold it forcibly as a part of the policy they purchased, which wasn’t the case. If you have been mis-sold PPI without your knowledge or through other wrong means, then you have the right to claim back the amount you paid towards PPI, but you need to know a bit about it to deal with the claim successfully.
Verifying the Existence of PPI
Before you go ahead and make a PPI claim, it is necessary to check that you have actually had the policy. To do this, you can go through the loan agreement or the policy documents. The documents might not always mention PPI explicitly, but might mention it through different names like credit insurance, loan insurance, account cover, payment cover, loan repayment insurance, and so on. If you find something is fishy, you can always look for more information through different sources, ask an insurance expert or a lawyer or can even contact the company directly to ask if the PPI was added to your policy.
Confirm the Mis-selling of PPI
Just having the PPI doesn’t form the ground for filling a PPI claim as it needs to be proved and verified that you have been mis-sold the PPI by the company or its agents. The PPI is generally a useful insurance tool when sold appropriately to the customers who may actually need it. Selling the PPI on false presences, however, is unlawful and forms the basis of filing a PPI claim. These are a few ways you can identify if the PPI has been mis-sold to you.
- If the lender forces you to buy PPI policy.
- If you have been told it is mandatory to buy PPI or if you are not told buying PPI is optional.
- You have been sold PPI that is not feasible or suitable for you.
- If you have been told that buying PPI increases the chances of getting the loan or policy approved.
- If you have not given consent to buy PPI or include it in the agreement.
- If the lender does not properly describe the cost of PPI to you or if its tenure is not intimated to you.
Filing the PPI claim and getting compensated
One can file the claim on their own and generally, it incurs no charges. There are claims management companies too who can help you in the process, but handling the claim on your own is a preferred and recommended option. One can approach the Financial Ombudsman Services to get the PPI claim approved, and if the matter doesn’t get solved there appropriately according to you, there is still an option to take the help of a professional lawyer to file the case. However, it may be an expensive choice, so one should go for it, only after calculating the amount at stake, which can be easily done by using the PPI claims calculator. There are many PPI calculators online that would help you find out approximately the worth of your PPI claim, after you fill in the required data.