Payment protection insurance was initially a good initiative until some crooks started taking advantage of unsuspecting clients. This is what has lead to some financial authorities to crackdown on the rising cases of mis-sold PPI. In 2010, the Financial Services Authority crackdown on most financial institutions and established that there were so many mis-sold PPI cases. Most customers were actually confused when they learnt that they were victims of mis-sold PPI. However, claims companies have facilitated the reclamation process and now many clients can breathe easily. In the crackdown, it was further established that actually over 85% of policy holders have tried to make claims which turned futile.
This was a good plan
The PPI is a good plan in theory because it can help one to complete loan repayments. Unfortunately, many PPI providers are not genuine and once you place a claim, you will not succeed in proving your case. It also realized that most of the people that have these policies did not want it but were forced to have it. The crackdown has become serious with most offenders who were found guilty of mis-selling PPI having to pay hefty fines. The process to ask for a refund is quite involving and this is why it is advisable to hire a professional company to handle the issue for you.
Valid reasons for making a claim
In as much as the crackdown has been quite beneficial in cleaning up the industry, there are still so many people that are still confused and cannot tell if they should reclaim their money. Here is a simple checklist that defines a mis-sold PPI. You should check the following issues and you will be able to understand where you stand.
Your PPI is mis-sold if;
- You were told it is compulsory
- You were unemployed at the time you took up the cover
- You did not get sufficient information about the policy before the sale
- You were not informed of the financial obligation it entails
- You were made to believe you cannot apply for it elsewhere.
Where to start
If any of the above scenarios define your situation, then find a claims management firm immediately and have your PPI claims process started soonest possible. You should furnish the agency with all the relevant details so as to make the process easier. It might actually take some time before you can actually get a refund but you do not have to worry since the firm you choose will handle the whole process for you as long as they have the relevant experience.
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What is PPI?
This is a kind of insurance that a debtor has to procure to provide security of debt payment. The supposedly benefit of this insurance is that a borrower will still be able to liquidate his debt should there be uncertain eventualities in his life. When he dies, is disabled or loses his job, the creditor will be paid by the insurance company. The amount of insurance covers the whole amount of loan. How far back can you claim PPI is worth looking into as claims companies vary from 6 years with some suggesting up to 15 years.
Why there is a need for PPI refund
In the year 2011, there came the revelations that many banks in the UK collected the insurance on mis-sold PPIs. Bankss were mandated to make a refund to the borrower since the PPI was classified as mis-sold. This happens because the borrowers were deceived and were made to believe that the PPI is a necessity. Some lenders purposely did not inform the borrower but instead added the cost of insurance to the loan payments.
How to claim the refund
- If you were asked to make PPI payment in the past, you should contact the insurer or the bank.
- You have to prepare all the documents such as receipt of payment of the insurance and receipts of loan payments. If possible, attach the documents for the loan release. This will indicate the amount of original loan that you had obtained and the amount of payments you made on the monthly basis.
- These might not be enough, so you better get from the bank or insurance company a checklist of the requirements for refund or claim.
- After collecting all the documents, file your claim.
- It is advisable that you hire a claims management company because the company can handle the legalities in a better way.
- If you have filed for a claim on your own, do the follow-up for the release. If you filed it through an agent, follow-up your claims with the management company.
Duration of the claim
You may receive the payment of claim in approximately a month’s time if claimed through a management company. If you file for the claim on your own, then you should expect a longer time of payment and you might also receive a lesser amount than what you should actually get. But then, you have to pay commission to your claim agent once you receive your refund through their intervention.
It is better to take the help of a claims management company if you want to claim back your PPI amount successfully. This is because the right company can guide you in a better way and help you throughout the process of filing your claim.
Filed under PPI | Tags: claiming ppi, claims, ppi claims | Comment (0)