PPI is an acronym for Payment Protection Insurance. This is a type of insurance package which guarantees the policyholder that a sum of money will be paid if he or she is not able to work due to an illness, an injury or even a death. However, this policy has often been misrepresented or sold under rather unscrupulous circumstances.
What is Mis-sold PPI?
Mis-sold PPI is defined as any policy that was included within a certain package (such as a mortgage or a credit card application) which may be unnecessary or even unknown to the customer. There are instances where it may be classified as “loan repayment insurance” or “credit insurance”. If the applicant was unaware of the policy or if he or she was pressured into its purchase, they may have been mis-sold. Additionally, there are many instances when such protection is not necessary.
How to Reclaim PPI
The first step in reclaiming Payment Protection Insurance is to make certain that it is included within a financial package. This can often be determined by examining a breakdown of the billing statement and searching for any unknown terms or charges. Also, many customers can feel that they were pressured by a representative during the application process and told that the policy was “mandatory”. If either of these instances occur, an initial grievance can be filed with the company in question.
If they fail to address the issue or otherwise argue with what appears to be a valid claim, the Financial Ombudsman Service will need to be contacted. A PPI claims form can be filled out and submitted. If this still fails to address the issue, a formal complaint should be written to the ombudsman. However, it needs to be noted that the ombudsman will only begin to examine the claim after eight weeks have passed since the initial filing. Although the settlement process may take some time once it has begun, there is always the potential for a substantial reimbursement.
Choosing a PPI Claim Firm
There are several factors to keep in mind when examining different firms. First, how long has the company been in existence? Are there any third-party reviews available online or does the enterprise offer testimonials? Obviously, the reputation of the service is exceedingly important.
Also, it is critical to view the fees that are involved. Most companies will enable a customer to reclaim PPI for free, but their end commissions can often be high. It is recommended that any firm which charges more than twenty per cent be avoided; this can substantially reduce the ultimate amount that will be rewarded. Most reputable agencies will boast transparency and the proper accreditation. Should these factors not be met with satisfaction, it is wise to look elsewhere.