Customers who have got approved for loan or credit card along with payment protection policy can reclaim thousands of pounds in mis-sold insurance. These days’ numbers of mis-sold PPI cases are increasing drastically. Lenders who sell this policy as mandatory to their customers are making huge profits. Due to this illegal approach, the FOS fines huge penalty for selling this policy wrongly to their customers.
Payment protection insurance is designed to repay the monthly payments of loans, credit or store cards. You can compensate required cash through ppi claims to meet your financial expenses. The amount can be reclaimed in case of accidents and unemployment.
- Check for valid claim: PPI is an optional choice and it will not enhance your credit score. A recent survey conducted by competition commissions says– “many customers are not aware of payment protection insurance and have been paying a lot for this unbeneficial cover. If you have bought PPI along with credit card or secured loans or on any other agreement without your knowledge then you’re eligible for refund.
¨ For example, while taking credit if PPI cost and if its process is not properly defined or if the PPI was unexplained during your online application then you have right to reclaim your policy.
¨ When you are in unemployment or retired state or self-employee at the time of taking loan or if you have prior medical problems or if the rules and regulations of the policy were not explained to you, then you can claim against the policy.
¨ The age limit of this policy is over 65 and below 18 years, if you were into this situation while purchasing policy then the policy is mis-sold to you.
¨ When the lender doesn’t explain about the insurance policy and its benefits or suitable needs, then you can make a claim.
- Know the type of premium: You can refund the amount paid if you have a single premium policy. PPI lenders have agreed to repay the amount to all the single premium policy borrowers who had cancelled it during the period of March 2007. So if you have cancelled single premium policy, then you can get a refund along with interest. Recent survey conducted by Financial Ombudsmen Service (FOS) states that 60% of PPI reclaims are related to single policy issues which are sold to customers on all unsecured credits.
- Consult your lender: If you are eligible for reclaim, talk to your lender and request for review. If lenders reject your claim, then approach FOS. Ask creditor to send the details of your account and amount involved in the policy. Don’t take the assistance of third party reclaim institutions if they demand huge payments.
- Identify when to claim: Banks need certain time i.e. 21 days to plea the case. If they don’t respond within that time or if you’re claim is unsuccessful, then you can file a complaint.
Author Bio: The guest post was contributed by Lucy, financial guest blogger from Manchester, UK. Find out more about her finance related blogs @financeport.