Ultimately lenders have decided to to put aside funds to pay out the expected claims on payment protection insurance (PPI).
Any loan in the last six years is eligible for a PPI claim and solicitors have already sprang into the void offering their services. PPI was invented to cover any loan or credit card repayments in the event of the claimant being unable to work due to sudden sickness or unemployment. The product itself is not the issue, but the way in which it was sold was.
The FSA banned lenders from selling single premium PPI whereby the total cost of PPI was added onto the loan forcing the payee to pay interest on the insurance premium as well as the loan. This was deemed illegal and against banking fair play rules. The regulator went further, and, introduced a new rule preventing PPI from being sold at the point of purchase too.
The mis-selling of expensive payment protection insurance (PPI) has been a long term scam for many institutions. Lenders, including A&L and HFC Bank have had huge fines imposed on them. Here we will show you how to claim back PPI without the need for costly solicitors.
What Counts As Mis- Selling?
Internet Sign Ups: Lenders using pre-ticked boxes where the applicant had to opt out of the insurance rather than opt in.
Phone or Face To Face: Being told it was ‘compulsory’ to take out the insurance or, those who are self-employed, unemployed, retired, have pre-existing conditions, or who are covered elsewhere with other products.
How To Claim Back PPI
- Check the loan paperwork ( many people were unaware they were sold PPI)
- Up to three letters will need to be written, with the final being to the ombudsman.
- Expect to be rejected at the first response, this is a well known bank tactic. Be persistent.
- Use letter templates widely available on the internet to start the process.
- 90 % of claims reaching the ombudsmans’ office are paid out in favour of the claimant.
- Cases can take up to a year to pay out, though this should be quicker if the claim was already in the system before the ruling.
To speak to the obudsman direct regarding how to claim back PPI check their web site here Financial Ombudsman Service. Their phone numbers are 08000 234 5679 (or 0300 123 9123 from a mobile). The ombudsman looks at each case individually and will ultimately decide if the company acted fairly.