PPI Claim Facts You should be Aware of

Mis-selling of PPI policies started as early as 1990s. The PPI companies were fined from 2006, but a major spin in the situation was seen only in 2011.  PPI complaints can be made at any time, though there are certain guidelines that will help in getting the claims in an easy manner as possible.

  • If your insurance has been active for the past six years, it would be easier to claim.
  • For a policy that is of an older duration, but in an active stage, or has expired within the past six years, you can still get a PPI refund. For instance, a 12 year old policy that has been paid off within the past six years is eligible for a refund.
  • In case of your policy ending six years back, PPI guide states that even if the banks do not have the concerned paperwork, if you have got the relevant documents, you can still make a complaint. However, the success rate is low in such cases.

Amount You Can Claim

Calculating the exact amount is difficult.  A PPI calculator can assist in estimating the precise amount you will get. The calculation is done by taking into account the time at which the policy was taken, the premium type, and whether you can claim the entire amount or only part of the original amount. Working out the value of the monthly loan payment can be done by entering in the amount of the loan and doing a comparison of the amount you had paid.

If you have ascertained your eligibility for a claim, you can approach the policy provider directly or march through PPI claim agencies. Ensure you go to a reputable one that is regulated by the Ministry of Justice such as The PPI Claims Advice Line – their website is www.PPIClaimsAdviceLine.org.uk.  There are PPI template letters available online which aid in entering the relevant details so that your PPI claims are properly addressed in order for you to enjoy a favourable result.

New Incentives System Should Be Imposed to Banks

Financial Services Authority Managing Director Martin Wheatley stated in his last speech that the main reason for PPI mis selling is the “greed encouraging” banking incentives and bonuses system that most UK banks have. Based on their investigations of high street banks, the FSA concludes that banks will need a new incentives system to restore reputation and order in the selling of financial products.

Former bank representatives and financial advisers from different banks claim that they were trained to persuade customers to purchase high-priced financial products to gain bonuses. Wheatley stated that customers were not getting a fair deal out of the situation.

The payment protection insurance claims conditions in the United Kingdom continue to improve amidst the high number of claims received by the Financial Ombudsman Service (FOS) in the past few months. The FOS states that they’ve seen an increase of 27% in the last six months, compared to 2011, having 400,000 claims against high street banks.

PPI or payment protection insurance is designed to repay loans, mortgages and credit cards in the event customers become sick or unable to work due to redundancy. The High Court has ruled that all PPI should be refunded to customers who cannot claim for PPI that was wrongly sold.

The FOS states that Barclays has 19,000 claims, Lloyds has over 22,000 and Santander has received 15,000, all in the last month.

Claims handling companies, continue to extend support for customers mis sold PPI. They offer counseling,advice and claiming services for customers willing to get all the refunds they deserve. It is advised that you seek expert help before making a claim.