PPI or Payment protection insurance is designed to assist people in making payment on their credit cards or loans in case of any redundancy, accident, illness, death or any such circumstance.
Many times, this is mis sold but figures show that a large number of people have successfully claimed PPI compensation. For this it is crucial to find out if you have PPI or you have sold it without being aware of the fact. Check the bank statements for loan or credit card and any additional payment made for PPI. If it is not possible then simply contact the provider directly.
Situations when you can get PPI claim
Here is a simple guide that will help you know if you are entitled to reclaim your PPI payment:-
- At the time of taking PPI you already had a medical condition that prevented you from working in future or you were retired, unemployed or self-employed and it included unemployment cover.
- If the company didn’t explain all the terms and conditions about the situations when you wouldn’t get a claim, the exclusions, cancelling procedure,
- You weren’t informed by the company that by the end of the loan you wouldn’t be protected
- Generally, PPI policies run only for a 5 year term and if the PPI cover was shorter than the loan provided to you then you can claim,
- You were informed that PPI was necessary or forced to take a cover,
- If the company have told that the same provider from whom you took loan or credit card can provide you PPI
- If you were older than the age limit of PPI that is in most cases 65 or 70 and you were older than this when you were given this policy.
Refundable amount and the procedure
Ideally, you should get all the premium paid along with the interest amount if the Financial Ombudsman Service or the firm agrees that PPI was mis-sold. If you were treated wrongly at the time of cancelling the cover, you are entitled to fair refund, which might not be on pro-rata basis. If you are of the opinion that the refund was unfair you have the right to challenge it.
For this you can contact the company that sold you the insurance. In some cases a firm also acts as an agent of another company so you need to write to the company along with the reasons that lead to mis-sold PPI.
After writing the first letter in case you do not offer a refund then you need to write to the concerned company again demanding a resolution within 14 days. You can even take your grievance to the Financial Ombudsman Service or to the ombudsman panel who will look into the matter free of cost. For any further assistance you can ask for an independent assessor or go through your bank statement for an evidence.
Once the PPI policy that is mis-sold to you is cancelled or you have claimed the payment due to you it is important that you compare and wisely choose different income protection in case you have a credit card debt or loan due.