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.
The mis-selling of PPI has become a huge issue in the UK. While there are some people who bought their payment protection insurance or PPI from their bank when they took out a loan, credit card or mortgage, many started paying for their PPI without them even realizing its costs had been added on. This is because many loan providers instantly added a PPI policy to the accounts of their clients – the huge commissions they got for each PPI policy sold explain why.
This is the reason why many individuals today are advised to check their loan or credit card accounts to see if they were paying for PPI all this time. Of course since you paid a lot of money for it, it’s only natural that you want to make use of it in case you too experience financial issues when paying for your debt. Unfortunately, banks will now reject PPIs and the only way you can still get money out from your PPI account is by filing a PPI claim.
How Long Do I Have Wait to Get Compensated?
Let’s say that you are one of the many people who filed for their PPI claims and you’re wondering when you will be reimbursed. Sadly, the compensation you’ll get from your PPI claim will take a while to be processed. While the help you’ll get from the Financial Ombudsman Service is free, your documents will take a couple of months to be processed. Keep in mind that there is a large backlog at the Financial Ombudsman Service. The FOS receives around 750 cases every week and PPI claims and complaints make up for more than ¼ of all these new cases. You can expect your PPI claim to be settled by the FOS after 8-9 months.
However if you’re experiencing financial or health troubles and you need the money fast, or you just don’t want to do all the paperwork yourself, you can also get in contact with a PPI claims specialist, like PPI Claims Advice Line. With this company, some people have had refunds within 2 months of filing for a PPI refund. Note however, that claims companies will do all the work and get you a payment more quickly, in return for a fee from your compensation payout should it be successful.
Financial analysts predict that the PPI crisis may finally end by 2016, based on the current speed of claims processing by banks and the Financial Ombudsman. The FOS recently stated that it is handling at least 1,500 claims a day, which is entirely “plugging up” the entire claims process. Banks blame claims management companies and the Financial Services Authority for the high number of PPI claims coming in on a daily basis.
Natalie Ceeney, the chief FOS ombudsman, stated that CMCs and the FSA are not to blame for the fiasco as the banks themselves started the entire ordeal. She states that CMCs are the reflection of mistrust that customers have with their banks regarding PPI. Ceeney also points out that the FSA only advised banks to call customers and invite them to make a claim if they find themselves ineligible for the insurance policy, and given the mis selling of PPI, the best way to know if they’re mis sold is by contacting the lender directly or employing a no win no fee PPI claims company.
Some claims management companies have been warned to advertise the PPI claims process correctly as some customers become confused about their claims and instantly make a claim when unnecessary. However, many reputable claims management companies have upped the effort and stated that they are only “customer helping hands” that they can count on if they have numerous claims. They state that a customer can handle one or two claims, but having three or more than four can be problematic.
Currently, the banks have set aside £13 billion in compensation for the mis selilng of PPI in the United Kingdom. Analysts see that banks want “to get this done with”, which makes the process faster. As fraudulent claims decrease, the analysts estimate that around 2015 to 2016 would be the end of the PPI crisis.
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.