Banks introduced payment protection insurance (PPI) as a way of helping to protect consumers in case of life crisis that would prevent them from paying off debt. PPI was a great product. However, most banks realized how much profit it yielded so they put pressure on employees to sell the insurance. It was often sold unclearly and unnecessarily to customers.
Financial products such as mortgages, credit cards, store cards, overdrafts, catalog credit, credit cards, personal and secured loans are some of the products on which PPI could have been mis-sold. There are a lot of ways in which PPI was mis-sold. Mis-selling tactics were vast, and in most instances, it was added automatically without the customer’s consent. Below are ways of knowing you were mis-sold PPI and you could be eligible for a claim.
Were Benefits and Costs Made Clear?
Consumers need to be able to make an informed decision about the products by themselves. They should know what costs the policy is adding to their debt or loan and the benefits it is providing. Most of the time, customers involved in such scandals were not given the details. This also includes if the bank disclosed how much commission it was receiving on the PPI policy.
Did You Know the PPI Is a Necessity or Optional?
PPI is not required to take out a credit card, loan or mortgage. Some customers were under the impression that it was compulsory. Some people even refused the products and were still being charged.
Most policies have limitations which could prevent you from ever utilizing the insurance. Things like employment, pre-existing medical conditions and age are some examples of things which could be limits on the policy. These should have been asked beforehand.
In case you have experienced any of these situations, then you could have a case against the banks to file PPI claims. Here is how to claim PPI.
How to Claim PPI
Find Relevant Documents
This includes everything which shows you have taken out a policy and shows that you are making payments for it. If you are not sure if it is relevant just copy it.
Write to the Provider Who Sold you the PPI
It will not take too long to do this. You can use an advice service PPI letter or filling in a questionnaire that most banks have on their websites. It is a standard form which is used by financial ombudsman service. Send the relevant documents and explain why you think you were mis-sold PPI.
Send Complaint to Financial Ombudsman Service
If you do not get a response within eight days, you can send a complaint to the ombudsman who will ask you to fill a questionnaire to decide if you have been mis-sold PPI.
These are some of the important things you need to know as far as mis-sold PPI claim is concerned. Knowing your eligibility and how to claim a PPI is vital to PPI claims.