Millions of people who could have been mis-sold Payment Protection Insurance (PPI) can expect to receive letters from their banks advising them to seek compensation. Even if you do not receive a letter, but feel you are eligible for PPI compensation, you can pursue PPI claims. If you feel you were mis-sold PPI, contact the business that sold you the policy to confirm the sale. Banks have set aside billions for purposes of compensating victims. Therefore, if you are one such person, you are entitled to get compensated and you will be surprised to discover you are owed thousands of pounds.
· Purpose of PPI
PPI was intended to repay people’s loans, in the event that you lose income due to job loss or falling ill. Therefore, it has been sold aggressively with credit cards and personal loans, as well as mortgages. However, it has been discovered that many people have no idea why they were given the plan in the first place. Furthermore, many people are unaware they bought it because it comes with many products and guises. It may be referred to as credit or loan protection, accident cover or sickness & unemployment cover. Sometimes, the policy is offered as an “essential”, with some banks and brokers advising customers refusing them are disqualified from the bid to get a loan.
· Grounds for claiming
In a situation where the paperwork was immaculate, people have sufficient grounds to make PPI claims and get a refund of the principle amount, plus interest. However, you must show you could have never made claims of part or all the policy. Sellers often do not seek to find out the employment status of customers when they offer the PPI, promising to pay the loan in the event of unemployment. In addition, the policies offer exclusions to “self-employed”, retired and persons working in a family business. Furthermore, those with casual agency work or with short-term contracts may not make claims. Therefore, in all these cases, the policy has been mis-sold. Moreover, if you are in employment, the seller does not find out if you are planning to work casually, become self-employed or retire. If you have been unemployed at the outset or were a student, there is no way you could have claimed, which means the policy was mis-sold.
· Pursuing the claims
If you have doubts about having paid for the plan or its value, you can always contact the business for confirmation. Once you have confirmed, you can proceed to make your complaints to the business (i.e. credit provider, mortgage broker or bank) that sold you the policy- not the insurance provider. If the business fails to confirm or rejects your complaint you can pursue your PPI claims from the Financial Ombudsman Service (FOS). To facilitate the process, you need supporting document showing PPI was sold. If you so wish, you can hire the services of a claims company to pursue the claims on your behalf.