May 31, 2013

When PPI Sellers Break the Rule of Selling, You Can Claim Your Premium Payments and Interest Back

Over the past several years, banks, moneylenders, and insurance providers have been caught to be mis-selling Payment Protection Insurance to their customer, which eventually caused them a lot of trouble. Complaints and reclaim cases have started flooding their offices because consumers were extremely unhappy with how they were treated.



If you happen to have had any form of credit agreement recently with any known financial institution, you were most likely sold this product, too. PPI was meant to cover your monthly repayments in cases where you are unable to pay due to sickness, accident, or redundancy. However, you may not be aware that you have it alongside your debt, or you were tricked into paying for it without knowing what it entails. Visit www.ppiclaimsadvice.co for more information.

Before claiming your money back, you may need to check first whether you really have PPI on your account. Have a look for any Payment Protection Insurance reference on your loan or credit related paperwork, including your statements and payment receipts. A policy certificate should also have been sent out to you, containing the terms and conditions, as soon as it was sold.
If you have lost your documents, request for a copy from your lender. The credit bureau can also check your credit rating record to see the financial institutions you have dealt with if you forgot who your lender was. However, you are more likely to get a hold of this information if your account is not any older than six years since it began. These offices are mandated by the law to keep these records for as long as that, or within six years following the credit’s payment in full. So whatever paperwork you have gathered should be sufficient to back up your PPI claim.

As soon as you have gathered your documents, you can get the ball rolling. Write a letter of intent to your lender and tell them that you wish to claim your PPI payments back and possibly be compensated for the trouble it brought you, interests incurred included. When stating your reasons, you can refer to any of the situations below to establish why you were mis-sold the policy:

• You did not realise until later you have PPI because it was automatically added to your account and opt-out was not made clear.
• You were led to believe that it gives you better chances of a higher loan amount or credit limit if you took out PPI alongside the finance agreement.
• The lender strongly urged you to take out PPI even without clearly stating demands and needs provision.
• You were not informed of limitations and exclusions on the terms such as age limit, residency requirement, pre-existing medical conditions, employment status, and the likes.
• The lender did not talk to you about the cooling-off period which entitles you to cancel at no cost.
• They did not properly inform you of the total cost of PPI or what you will be charged off in the future.
   
As soon as your lender acknowledges receipt of your letter, they will run a thorough review of the case. Within the next six to eight weeks, they’ll come up with a decision and let you know of it. You may follow up with them if you feel the need to. If by any chance you have not heard from them after such time, or you become unhappy with their decision, you can file a complaint against your lender to the Ombudsman.

The Financial Ombudsman Services will independently make further enquiries and review your case. They may also ask you to send in copies of correspondence between you and your lender, and other related paperwork. The FOS will then decide whether to uphold your PPI claim or not. If they decide to rule in your favour, your premium payments will be reimbursed and the bank may also be required to pay all the interest that came with it over time.

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