There are a broad number of individuals who have been mis-sold PPI when taking out a loan or other form of credit. With the PPI claim deadline coming up in August 2019, more and more individuals are looking for a way to check if they are entitled to PPI compensation and to then claim and are turning to PPI comparison tools to find the best way to do this. Here, we’re taking a closer look at the process of a PPI claim so you can determine whether or not you have been mis-sold payment protection insurance.
What Is Payment Protection Insurance?
PPI is a form of insurance which covers an individual in the event of an accident or illness which can prevent them from paying back any form of loan or other credit which they may have taken out. Payment protection insurance was sold by a number of banks and other financial institutions alongside credit cards, store cards, mortgages and other forms of credit. However, due to the high levels of commission which many sales people would achieve from PPI, there were cases where payment protection insurance may have been mis-sold.
How Do I Know If I Have Been Mis-Sold PPI?
There are a number of ways to know if you have been mis-sold PPI, but most commonly, it’ll be in the event that you were either unaware that you were paying for the protection insurance in the first place, the policy was not explained in full or you were sold PPI despite being illegible for cover (such as in the event of being self-employed or with pre-existing medical conditions). A recent guideline as a result of the Plevin v Paragon case also suggests that if 50% or more of the PPI commission went to the lender and you were unaware of this, then you may be entitled to make a claim. The terminology may also not be clear in any documentation that you had, and may have been referred to as payment cover, protection plan, loan protection, ASU or loan care.
How To Check & Claim For PPI
If you believe that you may have been mis-sold PPI, then it may be worth There are a number of ways to claim for PPI. Firstly, you can head to a PPI claims company who can provide you with advice and guidance, while also submitting a claim for you (subject to a small fee). Alternatively, you can claim PPI directly from the lender. All you need to do in order to claim is to find any relevant documents that you may have related to the finance on which you have been mis-sold PPI and make copies so you are able to prove that you have taken out a policy and are making payments for it.
Then, you will need to write a complaints letter and send this directly to the lender which explains why you were mis-sold PPI and include any evidence that you have. You should receive a response within eight weeks to tell you if your claim has been successful or not. If you have not been successful or you do not receive a response within this time period, you may have grounds to send a complaint to the Financial Ombudsman Service, although you will need to provide even further evidence at this stage.
The process of checking and claiming for PPI compensation is simple. Are you going to make a claim?