For several years since its introduction to the financial services marketplace, a lot of people attempting to take out a loan or credit cards from financial institutions were sold Payment Protection Insurance at the same time. It meant signing up to a policy to help them cover a certain amount of their monthly credit repayments in the event of their inability to pay caused by sickness, accident, death, or unemployment.
In a nutshell, this was a great idea. However, with the current scandal of having the policy automatically added alongside a credit agreement without the customer’s awareness, or the way they were kept in the dark about important details during the sale process, PPI has caused way too much trouble that led millions to want to get their money back through the official ppi claims process.
If you fell victim to the mis-selling of Payment Protection Insurance, you can now reclaim the premium amount you paid, and possibly the interest it incurred over time. The guidelines written in this article will help you through the process and rid yourself the trouble that others seem to have gone through.
Reclaiming a mis-sold PPI should not be as complicated as rumours had it. First, you need to find out if you actually paid for such by going over your credit or loan related documents. While some knew they bought it, you could be one among others who were not aware that it was automatically added to your account. A policy certificate should also have been sent to you. Look for any reference to PPI on your statements, receipts and other paperwork.
If you happen to have lost account documents, contact your lender t o request for a copy. In cases where you forgot who your lender was, try the credit bureau. They can look into your credit records to see which financial institution you’ve dealt with. Just note that these organisations are mandated to keep your records for only as long as six years after your account started or last paid off. If it has gone over six years, you will find your documents really helpful to back your claim.
When you’ve gathered your paperwork, contact your lender by sending them a letter of intent to reclaim a mis-sold PPI. Tell them in an objective manner how you wish to be compensated for having been mis-sold the policy and how you strongly believe that it was wrongly offered. If you need a reference to the reason/s you are going to include in your letter, you can have a look at the below situations that may be applicable to you:
- You were either under the age of 18 or over the age of 65 at the time that you took out a borrowing agreement and the PPI altogether.
- You were working below a 16-hour workweek when you were sold the insurance.
- You were employed on a contractual basis or you were holding a temporary employment status when you were sold the PPI.
- You were self-employed or working on a family-owned business. Protection for this kind of employment does not guarantee insurance coverage. You needed to have been advised of such when you were being sold insurance.
- You had an existing illness or a pre-existing medical condition at the time that you were taking out PPI. Medical conditions brought about by stress and backaches do not guarantee coverage. Mental illnesses are also not covered.
- You were not asked if you were holding any insurance of the same kind. If you happened to have had an insurance package that has repayment coverage and you were not asked of it, you won’t be eligible for a repayment coverage claim on this new policy that you were sold.
- You were told that PPI was a compulsory product that you needed to take out alongside the borrowing agreement with the bank. Repayment protection policies like this are optional add-on services and should not be imposed on the borrower.
- You applied for a finance agreement online and you were unable to notice that the PPI box was automatically ticked. Prior to submission of an online credit application, you need to un-tick that box to opt-out of the insurance. The Financial Services Authority changed this when they intervened after a number of complaints that came in after July 2007.
As soon as your lender receives your claim letter, they will weigh things around and review your case for up to 6 or 8 weeks. If you fail to hear of a decision from them within the said time frame, or you are unsatisfied with how they resolved the claim, you can bring the matter up to the Financial Ombudsman Services. When you file a formal complaint to the Ombudsman against your bank, a review of their decision will be conducted. The FOS may need to contact your for additional information and paperwork. They’ll also contact your back to make further enquiries surrounding their resolution on your claim.
The Ombudsman’s decision may take a number of weeks but you can follow-up if you feel that there have been unnecessary delays. If decided that your case is valid and you were eligible to reclaim, they will require your bank to process the reimbursement of your money at the soonest possible time. The interest that your PPI payment may have incurred over time may also be included in it.
