For over a decade now, the Financial Ombudsman Service has been receiving tons of complaints about Payment Protection Insurance mis-sold to borrowers within the UK and for over a decade now, there are no signs showing that they’re about to decrease. PPI was intended to cover a borrower’s monthly repayment should they be unable to pay due to sickness, death, redundancy, or accident. However, that has not been the case for millions of people wrongly sold the insurance policy.
Because of these incidents that has upset millions of loan takers and credit card holders, reclaiming the paid PPI premium and interest has been made possible and people have started going about it. If you ever felt that you were mis-sold this policy, you can start going over the details and file a reclaim of the money you used to pay for it.
The following basic instructions will show how less-complicated it is to reclaim a mis-sold Payment Protection Insurance:
First things first, find out if you have PPI alongside any of your credit cards, loan, or any finance agreement with a bank. Go over your account documents, statements, receipts, and credit agreement forms and look for a reference to PPI. In cases of missing paperwork, your lender should be able to send you the copies you need upon your request. If you forgot who your lender was, check with the credit bureau agencies to see your credit record and find the financial institutions you have dealt with. However, you need to take note that these offices are only mandated to keep your records for as long as six years after your account started or last paid in full. Anything longer than that will require documents to have been kept safe to back up your PPI claim.
When you’ve got your paperwork ready, you need to write to your lender regarding your intent to claim for the PPI payments you made. Clearly state how you need to get your money back and why you strongly believe that the product was wrongly sold. You can refer to the following situations if you need to establish your reasons to believe that you were tricked into buying PPI:
PPI is not a compulsory product. It does not increase your chances of a higher credit limit or loan amount not it limits your chances of the application to be approved.
PPI does not cover individuals below the age of 18 and over the age of 65.
Contractual or temporarily employed individuals are not eligible for cover.
Self-employed individuals and those working in a family-owned business are not covered by the policy.
Individuals with pre-existing medical conditions are not covered by PPI.
Any or all of these, together with other policy terms should have been discusses clearly during the sale process.
Following your lender’s acknowledgement of your ppi claims letter, they will run an investigation for the next 6 or 8 weeks. A decision will be sent out to you as soon as they weighed your case thoroughly. If you fail to hear from your lender or you were unhappy with their decision, you can take the matter up to the Financial Ombudsman Services.
By filing a complaint against your lender to the FOS, your PPI claim will be reviewed once more. The Ombudsman independently conducts this investigation and works to resolve disputes between the lender and its customer. Further enquiries will be made and your bank will be contacted for additional information. You may also be asked to send over a few related documents and the copy of your correspondence with your lender. The FOS will then contact you to let you know if they will favour your claim or not. If your claim proves to be valid, the bank who sold you the insurance will be required by the Ombudsman to pay you back. Your PPI premium payments, together with the interest it incurred over time will be returned to you at the soonest possible time, following the FOS’ ruling.