At one time, PPI was the most widely sold insurance in the UK and several parts of the world. The whole idea was to prevent borrowers from having to pay off the loan when something happens, and they become sick, redundant, or declare bankruptcy.
What was originally a great product soon became one of the world’s biggest financial scandals. Million people were missold PPI and, sadly, only when it was a bit too late.
If at any point in your life, you have secured a loan, credit card, or mortgage then you are quite likely to be able to recover your PPI. Everything that you need to know about getting your PPI back is set out below.
What is PPI and Why Was It Mis-Sold?
PPI is actually a kind of insurance product that compensates for loan repayment if the customer is either incapacitated to work because of an illness or accident or is also unemployed.
This is how useful it may appear on paper, but in the real sense, it shows how banks and lenders had sold such products to mostly unwary customers who neither required this product nor were even in a situation to file anything on it, nor even knowing that they are paying for something.
Some of the well-known mis-sales of PPI include:
- It was added to loans without customers being aware of it: Most of the borrowers were not aware that PPI was part of their loan package.
- It was sold to the wrong customer: PPI was mostly sold to self-employed people, retired people, or people with diseases before taking the policy.
- Misleading customers: Some banks lied that PPI was compulsory or would increase the chances of loan approval.
- Charging excessive interest: Many lenders added interest to the PPI premium, making it even more expensive for borrowers.
Why You Should Claim Your PPI Refund
If you were mis-sold PPI, the money you paid for it belongs to you. Here is why you should act now to reclaim it:
- It is Your Money: Whether you knew you were paying for PPI or not, that is money you rightfully spent. The high street banks have been instructed to return billions of pounds already taken from mis-sold PPI customers, and you could be among them to claim a substantial payment.
- Interest and Compensation: Often, banks will not only return the PPI premiums you paid but also charge interest and compensation. This could mean you are getting back many times more than what you paid initially.
- Time Running Out: FCA set a deadline for making PPI claims, which has now passed. However, there is still time to claim PPI if you have a good reason for missing the deadline. Do not delay any further in finding out whether you are due money.
How to Claim Your PPI Refund
If you believe you were mis-sold PPI, there are two main routes you can take to claim your refund:
Do It Yourself
You can handle the claims process on your own by contacting your bank or lender directly. Here is how:
- Gather Your Documents: Collect any loan agreements, credit card statements, or mortgage documents that might show PPI payments.
- Contact Your Lender: Write to your bank or lender explaining why you believe you were mis-sold PPI. Be clear and concise in your explanation.
- Complete the Required Forms: Most banks have a PPI claims form that you will need to fill out. Fill it out to the best of your ability.
- Wait for a Response: The bank will investigate your claim and contact you to inform you whether or not you qualify for a refund.
This route is free, but it takes time and can be frustrating, especially when your claim is rejected. In case of a rejection, you can take your case to the Financial Ombudsman Service, which has a high success rate for PPI claims.
Use a Certified PPI Claims Company
If you have no time or prefer not to manage the hassle of presenting your own claim, you can consider hiring a certified PPI claims company. These are experts who handle PPI claims and make the hassle come out of it for you. They will determine your eligibility, prepare all the paperwork, and negotiate with your bank on your behalf.
What Do You Get from Your PPI Claim
If your claim is upheld, you may recover:
- A full reimbursement of the PPI premiums you paid
- Interest on these premiums, normally at 8% a year
- Compensation for any distress or inconvenience caused by the mis-selling.
This means the payout you will get depends on the amount you have paid for PPI and for how long. Indeed, several individuals have collected thousands of pounds in refunds.
Conclusion
Millions of people have been affected through PPI mis-selling, but most are yet to realize the amount they were due. Taking the initiative by either claiming by yourself or going for a professional service may lead to hundreds, even thousands, of pounds put back into your pocket.
Your money is being held by banks; it is time to recover it. Go ahead and apply for PPI today.
