If you've had a Loan, Mortgage or Credit Card in the last 10 years then you could reclaim back around £3,500 in Payment Protection Insurance (PPI) today.
To find out more call PPI Claims People today on 0800 652 7076 or just complete our quick PPI enquiry form.
Ms J. Freser
Mr R. Dalgish
Mr S. Reid
Mr P. SmithAccording to estimates, around three million PPI buyers are waiting for their claims to be settled with each settlement resulting in average payout of £3,500 each. After a protracted legal battle that ended in the favour of customers, lenders, credit card issuers and banks like RBS, HSBC, Lloyds-HBOS and Barclays are expected to repay at least £9bn to the victims of what is now called the biggest mis-selling scandal in the history of UK. The British Bankers Association refused to accept the new rules for settling mis-sold PPI complaints and this resulted in a protracted legal battle. Customers won and became eligible to receive compensation when the HC ruled against the BBA and it decided not to appeal the Court's decision.
Knowing More About Reclaiming PPI Costs - Find More Info Ahead
You are probably feeling curious about PPI because you read about it in the newspapers or know a friend or relative who has filed a successful claim on his or her PPI policy. It certainly is a hot topic today with more and more people wanting to find out what PPI is, how it works and how one can recover money paid on a mis-sold PPI policy. Want to learn more? Well, just read ahead to find a simple and lucid explanation of the various issues related to PPI. Let us discuss what is PPI, why it is sold and why are people demanding their money back.
Introduction To PPI
Payment protection insurance (PPI), as the name suggests, is a type of insurance purchased when obtaining a loan or finalizing any other credit agreement. The policy ensures that you can continue loan repayments on your mortgage, credit card or any other debt in the event you are unable to do so for reasons beyond your control. Some PPI policies take care of breaks in work caused by sicknesses and accidents. Once the policy is activated, your repayments are taken care of for a period of one to two years as determined at the time of purchase.
Fair enough. So why are people complaining? Well, sellers mis-sold PPI raising questions about the validity of the product and the credibility of the process. Buyers of such policies are reclaiming the money they paid. Simply put, sellers cheated buyers and are now being forced to compensate them.
How Did It Happen?
Customers started complaining to the Office of Fair Trading and the regulatory authority in charge of overseeing consumer finance transactions. Buyers complained that mis-selling had occurred and this prompted an investigation. The investigation proved that mis-selling was rampant and widespread. It was found that buyers were never informed of their rights accruing under the policy properly. Buyers were often told they had no other option but to purchase the policy offered when the truth was that there were other options that buyers could have considered. Buyers were never given the option to consider alternatives and this caused them to spend more money.
Many never knew that they were buying a PPI policy. Some were sold useless policies that they could never claim on. Some ended up buying a cover that they did not need. This prompted the controversy and this resulted in buyers being permitted to recover money paid on unfairly sold PPI policies.
Types Of PPI
Have you become a victim of mis-sold PPI? There are different types and forms of payment protection insurance. You might have been sold a variant and may have still ended up as a victim. Check whether you have purchased any policy given below in the past:
Who Is Eligible To File A Claim?
Those who were sold PPI despite the fact that they would have never filed a successful claim on the same are clearly eligible for a refund.
If you are paying for PPI without consenting for the same, then the policy was added to your loan without your explicit consent. Or, the seller may have added it by default leaving you to 'opt out' of it. If you know you were not asked, then you can claim. Let the seller prove you were asked.
PPI offers no cover for those who were self employed, retired or unemployed at the time of purchase of the policy. If you were sold the policy despite the fact that all your claims would have been rejected, then you can claim a refund.
Did you have a medical problem that could have prevented you from working? PPI is not suitable for those with pre-existing conditions and the seller ought to have advised you about this potential issue. If this was not done, then you can claim a refund.
A single premium PPI policy is finalized by adding the cost of the policy to the loan amount and charging interest at the same rate as that of the loan. You are entitled to a refund if you cancel such a policy. If you cancelled the loan or repaid it in advance but were not allowed to cancel the PPI policy, then you can claim a refund.
The seller must inform the cost of PPI policy separately. If this was not explained or if the cost of the loan and PPI combined was stated, then you can claim. Purchased the policy because you were told it was compulsory? You are eligible to claim.
The seller is duty bound to explain significant features of the policy such as terms related to policy cancellation or important exclusions like stress, back problems etc. If the seller did not explain, then you can claim.
Almost all PPI policies have an age limit beyond which no protection is offered. It may vary from 65 to 70 years. If you were older than the upper limit when you purchased PPI, then you can file a claim.
Firms that have been subjected to FSA action are found to have missold polices to a large number of individuals. Find out whether your seller too has faced FSA action by visiting the FSA website and take action accordingly.
If you were not asked about alternative payment insurance policies that would have ensured your repayments were made on time, then you can file a claim seeking refund of the money paid. Such alternative options include income protection plans, redundancy packages or illness protection plan offered by the employer.
A standard PPI policy operates for duration of five years only. If you buy such a policy for a long term loan, you may end up losing the protection of PPI before the loan tenure expires. If this point was not explained to you in detail by the seller, then you have the right to claim the money you paid towards purchase of the PPI policy.
Are you feeling that you too have become a victim of mis-sold payment protection insurance? Just fill the Form or give us a call at 0800 652 7076 for free and we will tell you all you need to know about filing a successful PPI claim before it is too late.
