You may not know it yet but PPI policies that were mis-sold can save you from being on the verge of being broke. The amount that people have already gotten from having made PPI claims were enough to let them catch up with their current financial situations and still afford something else.
And even though it was meant to protect you from being broke, the way it was mis-sold only put you into deeper trouble now, having no knowledge at how much you could have possibly spent on it. Generally, PPI was supposed to play as an aide to people becoming suddenly unable to repay their credit agreements with banks if they got sick, had an accident, or were made redundant at work. It covers a certain percentage of a policyholder’s dues for a period of time or until they’re able to keep up again, whichever comes earlier.
Much to people’s dismay though, banks and other insurance sellers found a way to just sell the policy without regard to regulations. A lot of Payment Protection Insurance policies were mis-sold in various ways. Some were shocked to find out they were automatically signed up to it when they applied for a loan or credit card. There are those who were forced to buy it, having made to believe that it was determining condition to have their credit approved. Some were not even eligible – either below the age of 18, over 65, with pre-existing medical condition, or not employed full time, but were forced to buy PPI still.
Several other circumstances led to the mis-selling of PPI for the past several years. Basically, people were kept in the dark information that was supposed to have been discussed prior to being made to sign up. There has also been a massive misrepresentation of policy terms and conditions and other facts only to make profit out of the product.
If you were subjected to this kind of scam, you need to know you can actually demand for a review of your account and possibly get reimbursed for the money you paid to buy the insurance policy. First of all, you need to determine how long it has been sitting on your credit agreement. Check your account documents for references to PPI and see how much you spent on it and for how long.
Then, write to your bank demanding an account review and compensation. State that PPI was wrongly sold to you and specify how. Recall the events that happened when you took out a loan or credit card, and how PPI was offered to you. The bank will run a review of the information you presented together with the evidence you attached. Allow them to weigh things around for roughly 6 or 8 weeks.
Upon reaching a decision, the bank who sold you PPI will get in touch with you to let you know of it. If you’re not satisfied with how your claim was resolved, or they did not contact you after the prescribed period, you can take it up to the Financial Ombudsman Service for further review.
When you lodge a complaint to the Ombudsman against your bank, they will take over the investigation previously done by the bank. They’ll make further enquiries and may also require additional pieces of paperwork from you. Be ready to cooperate with them for a smoother process. Of course, it may take longer than what was prescribed. Due to the number of complaints being presented at the FOS, they have set a regulated timeline as to when PPI claims are decided on.
If your claim is successful, your bank’s required to contact you and discuss how you’re going to get paid. If you still owe them in loans or credit cards, they can have your PPI refund cover it. If there’s still some amount left, you’ll get a cheque for it. Either way, you have saved yourself from financial obligations and can breathe easier.
Making a PPI claim at the earliest possible time can save you from going in a financial slump, especially now that times can be so hard. If you’re at the very least suspicious of that PPI item in your statement, make further enquiries and don’t hesitate to ask for an account review to find out how much you can bag in mis-sold premium, plus the interest.