How do I go about claiming PPI Refunds?
With over 2 million people having been mis sold payment protection insurance in the UK and with the FSA already having fined financial institutions for selling PPI’s that either weren’t needed or insurance they the customer couldn’t use. There has never been a better time to ask yourself the question “Am I owed a PPI refund?”
Were you advised to take out something called Payment Protection Insurance (PPI)?
The story behid PPI’s are that they are supposed to help borrowers to meet the repayments of loans, credit cards or mortgage payments, if they are become unable to maintain repayments on the loan, credit card or mortgage payment due to either having an accident or falling ill or becoming unemployed. This type of insurance sounds great in theory, but in reality lots of consumers have had their claims refused due to policy clauses and/or exclusions.
An article by the Office of Fair Trading suggests that there are around 20 million Payment Protection Insurance (PPI) policies already been sold and are out there in the market, with as many as 7.5 million further PPI policies being sold every year. The financial rewards to financial sector from these PPI policies each year is estimated to be around£5 billion.
The Financial Services Authority (FSA) has already fined a number of high street banks and building societies for mis-selling PPI’s, this means that a president has been set and you may also be able to claim back the payments you have made.
PPI Refunds – The Facts:- ask yourself these key questions as they will indicate if you are entitled to make a PPI Claim:-
- Was your loan or credit card taken out with in the last 6 years?
- Did the finacial institution selling you the PPI fail to explain to you that you could get cheaper PPI insurance from other suppliers?
- Did the salesperson fail to explain to you that the insurance might not cover the full term of the loan?
- Did the salesperson fail to ask you if you were entitled to sick pay from your employer?
- Did the salesperson fail to make you aware that you could be paying more than you would be able to claim back?
- Did they fail to explain what the full cost of the PPI was going to over its lifetime, to you?
- Finally did they fail to check your medical history?
These are just some of the questions that if you can answer YES to then you may have a case for a PPI refund.
Other considerations to take into account that could lead to you being owed PPI Compensation?
Go through the statements below and if any of them apply to you then you could be in for PPI refunds:
- At the time of taking out the loan or credit card were you unemployed, self-employed, a student or on a fixed term contract?
- At the time I took out the loan or credit card where you already retired or a civil servant or in the armed forces :- (all of which make your PPI invalid)?
- Did you have an existing medical condition (eg depression, back problems etc)?
- When you took out your loan or credit card was it put to you that you had to have PPI in order to have the loan?
- When you took out the loan or credit card did the bank or financial institution added the PPI payment onto it without fully explaining why?
- When you took out the loan or credit card, did the bank ever fully explained the full cost of the PPI or the exclusions in the terms and conditions?
Again you can see that there are a lot of grounds on which you can request a PPI Refund – for further details just check out our PPI Refunds Q & A page.