PPI, fully known as Payment Protection Insurance, is a kind of insurance policy that makes it possible for a consumer to repay loan, credit or mortgage. This applies to the cases where something happens to the borrower like some kind of illness, sudden unemployment, disability, death and more.
Also known as credit insurance or loan repayment insurance, it is a bit unlike other kinds of insurance as it has different criteria that determine the suitability of a consumer to this policy. This has led to rejections, mishandling and mis-selling at large scale and many consumers were seen suffering due to the lack of support, solutions and knowledge.
Nevertheless, the success rate of PPI claims has been found to be over 85%. If you have taken PPI policy and believe that it was mis-sold to you, this article will surely help you in finding solutions for this dilemma, depending upon your situation and choice.
Did your PPI really mis-sold?
Previously, PPI policy was sold to a customer when he/she took some kind of loan, credit or mortgage so as to help him/her in paying the debt in the form of monthly payments in case an illness or unexpected accident or job loss occurs. Conversely, this led to problems because often there were no payouts, when the customers needed them.
Besides, the employees did not explain the terms and conditions of this policy and included those who were not even eligible for it. They mislead them by saying that it was necessary for getting loan. Here is where, you can claim the missold PPI, if you are one of those people.
Check your credit, loan or mortgage documents and look for terms like payment cover, ASU, protection plan and loan care and protection to see if the PPI policy was sold to your credit. If yes and were misled, you can directly claim that it was missold.
Claim your PPI
Here are some guidelines on how to claim PPI which is missold to you. Remember to keep four factors in your mind which are necessary for a successful claim, paperwork, account details, PPI claim forms and time consumed in the process.
- Make sure that you are eligible for the PPI claim and collect appropriate documents that clearly verify the inclusion of PPI policy in your loan agreements.
- Look for the company responsible for misselling PPI to your credit and write a template letter to it explaining your situation and demanding compensation.
- Fill all of your contact information in the PPI form and sum up the circumstances under which a PPI policy was missold to you.
- You should wait 8 weeks for a response from the company and if they don’t respond contact the authorities i.e. FOS, who will provide you with a questionnaire so as to verify your claim.
If you want to make sure that the PPI compensation is made fair and square, you should pay attention to the factors like your claims, obligations to bank, assumptions made by the bank, etc. You must contact the bank if you doubt the circumstances surrounding your compensation and if even there, you don’t get assurance, feel free to challenge or question the bank’s decision.