People are more often taken aback by their lack of enough knowledge about something they want to sort. Even in their financial situations, they doubt themselves more often than not about making a move to resolve a dispute with their banks because they might have had less information that they should have before doing an act.
When Payment Protection Insurance was introduced to the market by the financial services industry, a lot of consumers were only told of what it was in a nutshell. PPI was a product placed alongside a loan, credit card, or mortgage to help prevent it from being in arrears by covering a portion of the repayment if in case the consumer loses their job, gets sick, or meets an accident – rendering them unable to pay for a period of time. It was such an ideal policy to take along but much to everyone’s dismay, a lot of them were somewhat tricked into buying it.
Realising that there was a mistake in the way PPI was sold to consumers became one of their horrid nightmares. The policy that was supposed to protect them from a financial risk only put them on the edge. Frustrated feelings even started coming when those who needed the cover the policy offered was halted, with banks mis-informing their customers that if they wish to have PPI take over their repayments, their credit scores will be greatly affected.
Since this happened, and the discovery of the massive mis-selling scandal was found out, you began questioning yourself if you should do something to clarify it. You want to do what other people did, having made PPI claims for themselves after the High Court ruling or even before it as soon as they discovered they were wrongly signed up to the policy.
However, you somehow feel you do not have enough information at hand to make a claim for yourself. Well, have no fear and get rid of that doubt now. By recalling what you were told and not when PPI was offered to you, you actually make it evident enough that something went wrong.
It also takes a matter of enough paperwork with references to PPI to back up your actions. If you wish to get your PPI payments and its interest back, writing to the bank about the mis-selling will initiate an account review to prove it but you also need to attach a reasonable amount of evidence. If your account is not any older than six years when it started or last paid in full, the bank can pull up all information pertinent to PPI and your credit account. However, you would have to have kept all your documents safe and produce copies of them to attach to your claim if the account were older.
When writing about the mis-selling of the product and having it applied to any of your credit accounts (loan, credit card, car finance agreement, mortgage, etc), specify the manner in which PPI was offered and sold to you.
If you need help writing the letter, you can refer to a number of readily available claim letters on the Internet. These templates have also included a checklist of possible ways PPI could have been mis-sold. For your easy reference, have a look at the situations below:
You were told that it was compulsory
The bank didn’t make it clear to you that it was optional and that it doesn’t determine the approval of your application for credit, or explain any cooling off period
The bank was very pushy when selling the product to the point where you felt you couldn’t say no
You were sold cover that you were not eligible for, i.e., unemployment cover when you were already unemployed.
You were self employed and the policy did not cover self employed people
You were not informed that the policy does not cover pre-existing medical conditions (if applicable)
When you have established this on your claim, and the bank has received your letter, they will investigate the matter for roughly 6 or 8 weeks. Claims are usually decided on after the said time frame if there are no complicated situations surrounding it, or evidence was sufficient enough to back it up.
If your PPI claim was rejected, decided differently and unsatisfactorily, or you were not notified by the bank about their resolution to your claim, the Financial Ombudsman Service can help you resolve things further. Lodge a complaint against the bank about their actions, or lack of it to resolve the case. The Ombudsman will facilitate a further review and make further enquiries to your bank before deciding whether to uphold your complaint or not.
When successful, the bank will be required to give you back all the money paid to Payment Protection Insurance, plus the interest it has accrued over time. When contacted, you might want to make an arrangement about covering your outstanding balance if you still owe the bank some. The amount you may get from your PPI compensation may be enough to make you debt-free and still have some cash on hand.