You will certainly not fancy it when you find out that you could possibly have been robbed of a great amount of money by your most trusted bank when they made you sign up to Payment Protection Insurance. You could have been told that it’s an insurance policy in place to protect your account from getting in arrears by covering your repayments in the event of sickness, redundancy, or accident. You realised there was something dodgy in the way it was applied alongside your credit card, loan, or mortgage but you’re being held back from reclaiming by your own doubts of the trouble you may need to go through and the amount of effort you need to put in to get your money back.
You’re not thinking of shrugging the mi-selling off and forgetting about it, are you? Well, if you haven’t got the faintest idea what to do, follow this lead.
If you have a closer look at the situation, you could have been subjected to selling tricks and schemes that banks came up with to sell PPI. The insurance policy itself was ideal but the way it was sold was hideous and full of scam.
If you’re certain you were wrongly signed up to PPI, you can follow what others did to get their money back. PPI claims have started flooding the banks from years ago and you may do this by seeking the assistance of a claims company or work things out on your own.
First and foremost, you need to determine how much you are approximately paying to Payment Protection insurance from when it was sold to you. It could very well be hidden in your statements under ASU Cover, CRP, Mortgage Protection, etc. Go through every paperwork carefully and look for references to the policy.
And then, recall how the mis-selling happened. As it was mentioned, there were several schemes that the banks and other insurance brokers have devised to push the sale of this policy. Here are a few situations that you may find applicable to you:
If you were signed up to PPI without your knowledge and permission, it was a scam.
If you were forced to believe PPI was mandatory and a condition on the approval of your application for loan or credit card, you were mis-sold.
If the product was not suitable to your financial needs or your immediate need of it was not established but was still applied onto your account, PPI was mis-sold.
If you were blow the age of 18, over 65, had a pre-existing medical condition, or not employed full time, but were still made to buy the policy, then it was mis-sold.
Together with the information that the policy does not cost cheap and it may expire even before the debt it should cover when needed is fully repaid, you should have been told of the important information surrounding the policy. Otherwise, you could be certain that mis-selling happened.
For the bank to conduct a review, you need to put all of this in writing. Take as much time to come up with a comprehensive claim letter. If you need a reference, you can look up templates and ready-made PPI claims letters through the Internet.
Remember that it may take a few weeks for the claim to be resolved. Attach a sufficient amount of evidence to facilitate the process seamlessly and without delay. Reviews generally run for six weeks, following a non-complicated case.
Once concluded and a decision has been made depending on the information looked into, the bank will notify you of what happened. Although there’s not always a guarantee that a refund will be awarded right away, it is still worth a go as the review itself will clarify everything that surrounds the sign up to PPI. However, be reminded that roughly 85% of PPI claims made were deemed valid. You still stand that chance, too.
If things didn’t go the way it was supposed to, even if it was evident that a mis-selling really took place, you may take up the matter to the Financial Ombudsman Service by lodging a complaint against the bank. It may take a reasonable amount of time from there as the Ombudsman will be questioning the actions done by your bank to resolve the issue. However, it is still worth a shout though.
If the Ombudsman upholds the claim, meaning they rule in your favour, you can start making arrangements with your bank as to how you would be receiving your compensation. In many cases, refunds are used to cover whatever amount that consumers still owe the bank in debt, and cheques are issued for whatever’s left of it. If you’re debt-free anyway, the bank can issue a cheque in your name with the calculated amount you paid to the PPI policy and the interest it has incurred from the start.