Just when you realised that the bank you owe money to in debt (credit card, loan, or mortgage) found a way to rip you off by mis-selling a PPI policy, you can actually legally make a claim for the premium and interest payments be returned to you in weeks. There’s a straightforward way of making PPI claims and you could do it yourself. Alternatively, PPI claims advisers are also very much willing to assist you in getting your money back.
PPI in general is a great add-on financial product for credit consumers to take out. It is usually offered alongside cards, loans, and mortgages to help borrowers keep up with their repayments in times when they become ill for a long time, have an accident, or get unemployed for a while making them miss their dues. However, it was discovered that banks employed a number of unlawful schemes to sell this products to unsuspecting customers.
If you have no idea what to do, you could follow this five-step process to reclaiming a mis-sold PPI.
STEP ONE: Determine the existence of Payment Protection Insurance in any of your credit accounts. You can check your bank statements, credit agreement forms and other documents for it. See references to PPI including the amount you’re paying for it and the date you were signed up. Incidentally, if you’ve lost any paperwork, you may request your bank to furnish a copy for you.
STEP TWO: When you have established that you were signed up to PPI you can begin you reclaim by putting it in writing. Ask the bank to review your account details and the policy you were sold as you suspect it was wrongly applied alongside your debt.
Describe what happened during the sale and specify the information you were told or those that you were deliberate kept in the dark with. There are several ways as to how a PPI policy could have been mis-sold to you. Have a look at the situations below.
• You were told that PPI was a compulsory product; was automatically added to your account without being told an opt-out alternative.
• You were made to believe it increases your chance of getting a higher credit limit or loan amount; or told that your application is less likely to be approved without taking the insurance alongside.
• You were not clearly informed of the costs and cooling-off period.
• You were not informed of the terms and conditions, including extent of cover, exclusions, and limitations – this pertains to age limit, residence status, employment status, pre-existing medical conditions, having availed of policies of the same nature, etc.
STEP THREE: Let the bank take care of the PPI claims review. There should be a window of 6 or 8 weeks for the review to be completed. Follow up communication is encouraged if you feel that you need to know what’s going on. There may also be times that the bank will contact you to ask for additional information and documents so be ready to provide them that. (more…)