Payment protection insurance can cover mortgage, credit card, loan and other credit repayments if a person is unable to meet them in particular situations like not being able to work due to certain illness or accident to being made redundant. PPI claims are only valid in UK and not in USA.
If you were mis-sold payment protection insurance you may have paid or you’re still be paying for a policy which you cannot claim on or do not actually need. This infographic tells you when to file a PPI claim. However, you might be able to reclaim the money spent on mis-sold payment protection insurance by means of following the following steps:
a) Check if you have a policy. Examine the paperwork for your loan since the cost of your payment protection insurance may be contained on your statements. At times, it is not listed as payment protection insurance and may be termed as credit insurance, loan protection, payment cover or account cover, accident, sickness and unemployment insurance or loan repayment insurance. In the event that you’re still not certain whether you have payment protection insurance, ask the bank or firm that sold you a credit card, mortgage, loan or other similar product.
b) Examine if your payment protection insurance was mis-sold. Some of the reasons why you might have been mis-sold payment protection comprised of:
- It wasn’t made transparent that payment protection insurance was optional.
- You were pushed to take out payment protection insurance.
- You thought purchasing payment protection insurance was a condition or would augment your chances of getting a loan or other similar kind of credit.
- You were recommended to take out payment protection insurance; however, it was not appropriate for you.
- The policy was added to your loan without your approval or knowledge.
- Certain exclusions were not clearly discussed like pre-existing medical conditions or being self-employed.
- It wasn’t made transparent that the payment protection insurance cover would end prior the credit or loan was repaid.
c) Make the claim yourself. A lot of firms at present offer to submit claims for mis-sold payment protection insurance, commonly known as claims management companies, claims firms or claim handlers.
d) Directly complain to the lender. In the event that you think your payment protection insurance was mis-sold or is not appropriate to your situation, it is fundamental to complain first to the bank or company which sold you the said policy. It is advisable to write to them all the important information with regards to the policy you are complaining and see to it that you make it clear to them why you think the policy was mis-sold. Usually, the bank or firm has eight weeks to respond. In case that your loan was arranged by a company which is no longer trading; however, you think that your payment protection insurance may have mis-sold; you must get in touch with the Financial Services Compensation Scheme to learn how to make a claim.
e) Contact the Financial Ombudsman Service. In the event that you do not receive any response from the bank or firm within the period of eight weeks or you’re unhappy with their decision, you may consult the Financial Ombudsman Service.
You can actually send the Financial Ombudsman Service’s free claim document or form to them although you already utilized it to complain to the bank or firm which sold you the payment protection insurance.
It is valuable that you get in touch with the Financial Ombudsman Service within six months of obtaining the final response from the company or the Financial Ombudsman Service might not be able to handle your complaint.
The Financial Ombudsman Service will ask the bank or company what they think happened and afterwards they will decide if they’re going to uphold your complaint.
If you have something to share about PPI claims, feel free to do so.