Mis-sold PPI claims – The essentials
Truly, you may be aware that the Payment Protection Insurance mis-selling scandal has topped the financial news for years and still has shown no signs of decreasing to date. PPI claims have been made by potentially millions of consumers who were victimised by the schemes banks employed jut to gain profit from the insurance that seemed totally useless despite its designed purpose.
It was intended to help consumers with their debt repayments should they become unable to because they got sick, were made redundant, or met an accident. However, there has been one too many schemes devised to sell PPI at a rate where profits skyrocket but regulations were breached – to a point where it almost seemed illegal. PPI claims have been flooding banks and lending offices when the scandal broke out and the High Court made a ruling.
What you need to know at this point is how you can prove you were one of those victimised by PPI mis-selling schemes. Your strong recall of what took place when you took out a credit agreement with a bank will help you establish this. As you have heard of, there are a number of ways that a consumer could be mis-sold the policy.
PPI is not a compulsory or an automatically added product to any of your loans, credit cards, mortgages, or other finance agreement. It does not increase your chances of getting a higher loan amount nor keep your application from being approved.
A cooling-off period should have been stated so you could cancel without having to pay any amount.
Terms and conditions should have been clearly stated while selling the product. Limitations exclusions of coverage should have been made clear.
Eligibility should have also been specified while selling PPI. Age limit, pre-existing medical condition, citizenship and residency, employment status, and other factors affecting cover must have been clearly stated and questions should have been answered before closing the sale.
If these points were not made clear, you have a plausible reason to want to claim your money back, accrued interest possibly included. Start by writing a letter to your bank and ask them to review your account for mis-selling PPI. State how you were wrongly signed up to the account and attach documents you believe will prove the mis-selling. Copies of your statements and credit forms will have reference to how much was paid to PPI and how long you have had it.
When received, your bank will go over your claim and make a thorough investigation. They’ll begin with the information you presented, then to the account details in their database. They will also check on their sales channels to find out what went on. For about 6 or 8 weeks this will continue until a decision is made. There may be times though that it could take longer especially when evidence is not sufficient to prove the claim.
When successful like most of the people who made claims, the bank will return your money including the interest that PPI payments have accrued over time. They’ll let you know by sending a notice and then you’ll have to discuss the arrangements with them. Most of the time, compensation is agreed to cover the outstanding obligations. If you’re any luckier, a cheque could still be issued for the remainder.
If the opposite happened, even though your claim was valid and on point, or the bank just dismissed you without notice, lodge a complaint against them at the Financial Ombudsman Service. The Ombudsman shall take over and put your bank’s actions in question before your case is upheld or not.
What’s important about making PPI claims is that you learn out of it. It may take longer than what’s necessary but you’ll be better off knowing it taught you to be more careful next time and that you could actually get your money back. So if you just feel at the very least suspicious as to how PPI was sold to you, do not hesitate to do something to clarify it or get things right.