PPI is a type of insurance which covers the monthly loan repayments that you are not able to pay due to situations like accident, illness, hospitalization, and unemployment. The level of cover varies depending on the type of policy and the amount involved. PPI is also termed as credit insurance, loan protection, Accident, sickness and unemployment (ASU) insurance, payment cover or account cover.
Factors to Consider in a PPI Claim
There are certain factors which must be considered before you design your plan of action.
- In order to lodge the complaint for a PPI, you need to first verify whether you have taken a PPI. You can look into the product statements for proof of premiums you have paid. Other things you can look for are credit agreements or policy booklets.
- If your policy has been taken a long time back and cancelled ahead of last six years, the relevant documents will not be present. If you have any pertinent documents or statements related to the policy you have made, then you can file a complaint.
- Even if you do not have any relevant documents, you can still complain.
All complaints regarding the PPI claims will be seen within eight weeks of lodging them.
Approaching the FOS
In case of your PPI claim not receiving any response, you can forward the complaint to a financial ombudsman service. This is a free service that helps in settling the disputes that arise between customers and financial service providing firms. You can also contact the service initially before deciding on the action you want to take. If you owe compensation from the firm concerned, you need not worry about the delay as the interest that is due will be calculated till the date in which the payment is made.
Re-claiming the Mis-sold PPI
The main objective behind taking a PPI is covering the debt payments, but since the policies have been mis-sold, you can rescue the money that should be legally yours. The reclaiming process is a fast and easy one. You need to follow the steps mentioned below.
- Verify your eligibility criteria
- Find the company which sold the PPI policy to you
- File a complaint with the bank in which you have made the payments
- If this does not get any response, you can approach a FOS
Financial ombudsman services take time to deal with PPI claims. You can also seek the help of a claims company.
Getting a PPI Refund
Once your claim is legitimate and upheld, the company to which you sold the policy should duly compensate you as you need not have taken the policy initially. If you have taken a regular premium policy like the ones that come with credit cards and mortgages, you should be refunded with the money you had paid as premiums and additionally the interest amount too, if it is applicable. In case of single premium policy similar to the ones linked to finance agreements or personal loans, the compensation is dependent on whether the loan is still accountable or not.
In some cases, PPI statutory compensation is also given a consideration. It is generally fixed at 8% interest rate. This is done to recompense you for the PPI money which you might have used for other purposes.
James has written this article, and he offer PPI Claims Adviceline on his website. You could consult with him to learn more about how you can make your PPI claims without spending a penny from your pockets. Fallow him on twitter now .