British banks have been caught big amidst a scandal and past borrowers are the winnders. The court has found that the bank has been systematically over selling payment protection insurance with many of their loans. Now they’ve been ordered to pay back those customers that have over paid on their loans.
While not every loan from a bank will result in a PPI claim, there has been so much rampant over selling of PPI that banks are paying out millions in ppi claims. There has been an entire industry cropping up over the fiasco of companys helping consumers file for their claims.
Not all personal protection insurance is bad. Personal protection insurance is just insurance that covers your loan repayments in case of accident, illness or unemployment. In many cases, it’s not a bad idea. However, it has been oversold in the past to the point where the courts have determined that some customers are owed money back.
Here’s a few pointers to check if you’ve been mis sold PPI and have a potential claim:
If you’ve taken a loan, credit card, financed your car, bought a house, etc… you will want to check and see if you qualify for a PPI claim.
First off, review your loan agreement and see if PPI is listed in your policy.
Now think back to how you bought your personal protection insurance. If you got your loan online, you could have easily have accidentally bought PPI without knowing it. In the past, many online forms have the insurance option checked off and you had to opt out. Recently online venders have changed this practice, but many customers bought PPI without knowing it before the changes.
If you bought from a salesperson, think back to how the PPI was pitched. The sales person has the responsibility of ensuring that you understand all the terms of your policy, including PPI. Some people were mistakenly told that the insurance was compulsory. In addition, many people were sold unnecessary policies based on their pre-existing conditions or employment situations.
- Were you told that the policy was mandatory?
- Did the salesperson not tell you about any cooling off period?
- Did they tell you that it would be more expensive if you didn’t get the insurance?
- Did they imply or tell you that taking out the insurance would help you qualify for the loan?
- Wouldn’t allow you to continue with the application if you did not sign the insurance agreement
- Was otherwise pushy when selling the product. (Wouldn’t take no for an answer)
If you experienced any of these situations when you bought your PPI, then you may have a valid claim.
If you believe that you have a valid claim, you can start your PPI claim by writing the company that sold you the policy and requesting a refund.
You can find standard PPI questionnaires online for free to fill out for your claim. These are standard forms for consumers to bring a complain about the wrongful sale of PPI. The questionnaire requests some personal and financial details to review your claim. Fill it out carefully and send it to your lender. Make sure to send it by recorded delivery and keep a copy for yourself. Be aware that sometimes when filing these claims, the lenders may often make getting a refund difficult.
If you believe that you have a valid claim, don’t give up if your lender rejects your claims. You have some recourse by writing your ombudsman. Taking your complaint to the financial ombudsman can turn the tables on a bad lender. The lender is responsible for maintaining the full details and evidence regarding your insurance. Many cases that go to the ombudsman end up in the consumer’s favor.
Some lenders fight dirty and getting your PPI claim can be a lengthy process. Although you can do it yourself, there is a large industry dedicated to assisting you get your PPI claim as well. If the process appears too arduous, there is always help. You can either start the process yourself or get professional assistance with your clam. Don’t let the banks get away with your money.