Payment Protection Insurance was meant to help people keep up with their payments on credit cards or loans in case of accident, illness, death or redundancy has been successfully mis-sold to thousands in the UK. However, great news is that now you can claim compensation. If you feel you have been mis-sold, find out the exact way to successfully make your PPI claim.
What compensation amount you could reclaim from banks?
Records indicate that over 87 percent of people who’ve claimed compensation in the UK have got success. Currently the average payout in the country for compensation amount is around £3,500.
How to ascertain if you have been mis-sold PPI?
If you have had few credit cards or a mortgage loan you may have been mis-sold Payment Protection Insurance (PPI). Few years back, financial institutions sold PPI when you secured a credit card, loan, car finance or mortgage deal-the idea being PPI would successfully cover your monthly payments on your credit agreement if you lost your job or became ill. However, these policies usually didn’t pay out when people required help. Sales staff often didn’t explain these policies properly-for instance to people who were with pre-existing medical conditions or were self-employed. Policies were sold to such people in groups when they weren’t actually eligible for cover.
So if you actually remember you had any such dealing with your bank, there is a good chance you were definitely mis-sold PPI (Payment Protection Insurance) and can file claim.
There is also a strong chance that bank might have been sold this PPI to you without you actually realizing it- sometimes salespeople didn’t’ explain such policies at all when you purchased it, or said you had to take out PPI or that you had a much better chance of getting the loan if you took it out. In all these cases you were surely mis-sold.
It’s worth checking any loan, mortgage or credit card agreement. If you can see any of these terms, or something similar, you have probably been sold PPI:
- Protection plan
- Loan protection
- Payment cover
- Loan care
Even if you cannot find the relevant documents, it is still worth claiming if you feel you were mis-sold PPI.
How to actually claim PPI?
Search for all the documents you can and immediately make copies of anything you feel might be relevant. This includes anything that shows you have taken out policy, and shows you making payment for it. If you aren’t sure whether it is relevant or not, just copy it anyway!
Immediately write a letter to the loan, mortgage or credit card provider who’s sold you the PPI. You can also do that online by filling up a Money Advice Service Template letter or you can also fill up in the questionnaire which many of the banks have listed on their sites. It’s just a standard form that is used widely by Financial Ombudsman Service. Send all the relevant documents and explain why you feel you were mis-sold PPI.
If you don’t’ get any response or any decision within 8 weeks, immediately send a complaint letter to the FOS (Financial Ombudsman Service). The ombudsman will ask you to fill up a detailed questionnaire to decide whether or not you have been mis-sold.
Get your mis-sold PPI quickly!
Before making your claim through PPI claims Calculator Company, you will probably want to know how much you are actually owed. Using a calculator on their site is definitely a great idea to know the refund amount and making quantum calculations is not that complicated. More important, you will also know if banks have actually made the mistake with their calculations when you visit the PPI claims calculator company website for calculations.
One vital thing you need to keep in mind, though is that figure you’re likely to come up with on PPI claims calculator company site will be mostly accurate. You can also use the guide available on the website before actually using the calculator.
The ideal process
once you have found each and every policy with PPI attached and you feel you’ve been mis-sold, you can go ahead and use PPI claims Calculator Company to make calculations. Follow the same process for every policy!
Ideally, you would want to know if your policy was/is a monthly premium or single premium policy, and also if it was/is for a credit card or loan. If you no longer have the relevant paperwork, you can also submit a Subject Access Request (SAR) straight to your lender and they will definitely provide you copies.
Even without this information, it is still possible to make a fairly accurate estimate as to the value of your actual PPI claim. There are three things you need to know in order to make calculations:
- The interest rate (APR) payable on your loan
- The exact loan amount
- The term of the loan