| A Simple Guide To Claiming Back Your Mis Sold PPI |
 |
 |
 |
| Written by David Taylor |
| Thursday, 12 August 2010 11:27 |
|
The Banks & Building societies of the UK are suspected to have mis sold PPI to over 20million people in the UK in the last decade - but what is PPI, why is it mis sold and most importantly, how can you claim it back? PPI is sold as insurance when you take out a loan, If you lose your job or have to take time off work because of sickness - recovering from a car accident for example - and are unable to make repayments on the loan then the policy kicks in and your payments are covered. The banks have mis sold these policies to people who didn't need them, for example people who had existing cover, people who didn't need PPI (retired people) or people for who the policy didn't cover because of exclusion clauses - a typical example would be a self employed person. If a bank sold a policy to someone in this situation then they have mis sold the policy, and the customer can claim it back.
The Banks & Building societies of the UK are suspected to have mis sold PPI to over 20million people in the UK in the last decade - but what is PPI, why is it mis sold and most importantly, how can you claim it back? PPI is sold as insurance when you take out a loan, If you lose your job or have to take time off work because of sickness - recovering from a car accident for example - and are unable to make repayments on the loan then the policy kicks in and your payments are covered. The banks have mis sold these policies to people who didn't need them, for example people who had existing cover, people who didn't need PPI (retired people) or people for who the policy didn't cover because of exclusion clauses - a typical example would be a self employed person. If a bank sold a policy to someone in this situation then they have mis sold the policy, and the customer can claim it back. If you think your bank is guilty of ppi misselling then you can and should take action. First you need to contact your bank or building society and find out if you do actually have payment protection insurance on your loan - the bank is obligated to provide you with copies of all details regarding your loan and will be able to furnish you with a copy of of your loan agreement and any documents attached to it. How do you know if your bank has mis sold you PPI? There are lots of ways that banks are guilty of mis selling to their customers: 1. Write to your bank and make a formal complaint - they are obligated to investigate any and every formal complaint made to so they need to take action. You need to state why you feel you have been mis sold PPI. 2. The bank will probably deny your claim - don't be disheartened! Their intention is to put you off but be wary of "good will" gestures as they are usually a fraction of what you are entitled to. 3. Make a second claim, this time threatening to involve the Financial Ombudsmen's Service(FOS); the watchdogs of this area of banking. Most banks settle at this point. 4. The bank should settle at this point and offer you the cost of the policy, any payments you have made on the policy and possibly 8% interest per annum. This should be settled in 8-12 weeks but if you have to go to the Financial Ombudsmen's Service you may have to wait up to 1 year. Claiming back your Mis sold PPI can be done by yourself at home but many people choose to use a Claims management company such as Gladstone Brookes who will manage your claim for you. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Interested in Reclaiming PPI? then visit www.gladstonebrookes.co.uk to find out about PPI Claims . |