Well of course, you felt angry and cheated when you realised that PPI could have been sold in a better way than merely shoving it right in front of you without much details. The frustration you are feeling at the moment could be tantamount to that of being ripped off a huge amount of money without you knowing it at first. Much to you shock when you’ve read the news, the PPI mis-selling scandal has victimised you and potentially million others.
Having been robbed such a huge amount of money could lead you to dark financial situations. If you come to think of it, there’s a way to make things better now and you can actually act to resolve this issue. Looking at the brighter side of things, PPI claims have started to come through the offices of various financial institutions and refunds have already been given to a great number of consumers.
If you want to make a claim yourself, here are a few points you should know about PPI and the mis-selling that took place for the past several years.
Designed as a protection policy that covers consumers’ debt repayments in times of sickness, redundancy, or accident, Payment Protection Insurance is sold and applied alongside different credit agreements with banks. They are signed up together with a credit card, loan, or mortgage applications. However, PPI is just an optional product that a consumer can choose to take or not, especially if determined that such was not suitable to their current financial situation. That’s the first thing that should have been established before even proceeding with the purchase.
For several years since the insurance policy was introduced, sellers (mainly banks and other known insurance brokers) devised schemes to increase their profit by mis-selling PPI. Some were too bold to forge their customers’ signature in the PPI agreement form just to sell the product. Other banks were very coy in hiding vital information to their customers. There were others whose eligibility was not determined before being offered PPI. They were under the age of 18, over 65, had pre-existing medical conditions, or even not employed full time but were still signed up to the policy.
If any of these happened to you, you could write to the bank that sold you PPI to initiate the review and make things right. You cannot let this chance pass without knowing how much you could be owed in policy premium refund and interest this time. Tell them what happened during the time it was being offered to you and do not leave out any detail that you could recall.
And just like any other cases brought into an office, you also need to back up your claim with sufficient amount of evidence. Gather your account related documents together and be on the lookout for any reference to PPI. The rest of the information needed for the review will be coming from the bank’s end. They’ll investigate their sales staff and their sales channels for any incidents of non-compliance to PPI sales regulations.
When successful, your bank will let you know how you can be repaid in 6 or 8 weeks’ time. Any outstanding debt with them can be covered by the amount of compensation you may get and probably get a cheque for what’s left. They are required to discuss this arrangement with you and do it at the earliest possible time.
PPI claims can sometimes take longer to prove though, especially when there is not sufficient evidence present. So, be sure to attach the relevant paperwork that you believe could make the process faster.
On the other hand, you may lodge a complaint against your bank if they failed to contact you after the prescribed turnaround time. The Financial Ombudsman Service can assist you further regarding the mis-selling and the dispute you have filed. They usually contact the bank following your complaint and make further enquiries about their decision or failure to give you notice.
Whatever resolution you and the Ombudsman arrive at, you will be happy to learn that something good came out of it. And remember that the finality of the FOS’ decision can still be appealed if you wish to by hiring a lawyer and taking the matter up to the courts of law. This may take longer but may be well worth it if you strongly believe that you were cheated into buying Payment Protection Insurance.
So, instead of staying fuming mad at how you were mistreated by your bank, look at the brighter side – the chance of reclaiming the money you paid to the policy and the interest it incurred by making PPI claims as soon as possible.