Whether you fall ill, incur a disability, or lose your job, having Payment Protection Insurance (PPI) will help you continue paying off your loans or debts. Thus, getting yourself PPI is not a wrong choice in itself. The problem, however, is how your lender asked you to get PPI. They might have required or cajoled you into getting one, without your information or consent. Thus, you might have ended up paying for something you never even thought of buying.
Know if you were mis-sold PPI: a checklist
Generally, the way that lenders and insurance agents mis-sell PPI involves a lack of explanation about its coverage. Some may have even lied outright when they told customers that PPI is compulsory or added it to their bill without the borrower knowing. But a lot of people don’t know if they had been mis-sold PPI or not, primarily if it was sold several years ago and they no longer remember. If you’re one of those people, ask yourself the following questions:
- Were you asked if you were employed?
- Were you self-employed at the time you were required to pay for PPI coverage?
- Were you told that PPI was optional?
- Did you actually need PPI?
- Were you told what’s exempt from PPI coverage?
- Were you told that you would have to pay for the insurance in one single payment?
- Were you told that PPI would be added to your loan dues?
- Were you told that the insurance would only cover the first five years of your loan or finance agreement?
- Was it “strongly recommended” that you consider getting yourself PPI? If so, were you given a written explanation as to why?
- Were you told that the PPI provider would earn a commission from selling you PPI?
If you answered ‘no’ to at least one of these questions, your lender or agent likely mis-sold you PPI.
Steps in claiming mis-sold PPI compensation
In 2010, England’s High Court of Justice ordered banks to review the claims of mis-sold PPI lodged against them but they refused. The court also ruled that the lenders should reach out to those who bought PPI from them, even customers who did not complain. Thus, you should have been contacted by your bank since the promulgation of the ruling, but if you haven’t heard anything from your bank, you can press your claims by yourself.
But you should know that the Financial Conduct Authority (FCA) has set a deadline for lodging a claim against mis-sold PPI, a date which falls on 29th August 2019. When you make a claim, also know that you can keep all of your compensation. The filing process is free, quick, and easy. You just need to have your claim filed with the lender as soon as possible. Here is what you have to do:
- Try remembering the firm that you think sold you, “strongly offered” you, or gave you PPI coverage without your knowledge or consent. You can check your credit file with any of the UK’s three credit reference agencies (Experian, Equifax, and Callcredit) if you don’t remember the particular lender who mis-sold you your PPI. The FCA also has a list of people or organizations on their website, which you can contact to ask if you had a PPI.
- If you have reason to complain based on the checklist in the previous section, state your complaint in writing and address that complaint letter to the firm that sold you the policy. Then personally give or mail that firm a copy your complaint letter. You can also call your lender’s hotline number.
Once you sent your complaint letter or made your call, the PPI seller has five days to tell you that they have received your complaint. Call on them or write them again if you haven’t heard from them after five days. From the day they acknowledge your complaint, they have to resolve your complaint within eight weeks or two months. If the seller or lender rejects your claim, did nothing eight weeks after acknowledging your complaint, did not acknowledge receiving your complaint ten days after you mailed them, or gave you an unsatisfactory response, you can go straight to the Financial Ombudsman Services (FOS). You have six months to file your complaint with the FOS after the PPI seller or lender responded to your complaint.
If you’re looking to learn more about flight compensation, Consumer Reclaimers is your best
option. Get in touch with us today to see how we can help you.