PPI Claims

While Payment Protection Insurance can be an extremely useful insurance policy, there have been numerous reported instances when these PPI polices have been mis-sold alongside loans, credit cards and mortgages.

If you’ve had a mortgage, credit card or loan you may have been mis-sold PPI and therefore will need to submit a claim.

Until recently, PPI was sold at the time one would take out a loan, credit card, mortgage or car finance deal.

However, the policies often didn’t pay out when people needed help. Sales staff often didn’t explain the policies properly – for example to people who were self-employed or with pre-existing medical conditions.

Policies were often sold to people in these groups when they weren’t eligible for cover.  If you remember any such conversation, there’s a chance you were mis-sold PPI and can claim.

How To Submit A PPI Claim

Once you have gone through whether you are eligible to submit a PPI claim, it’s important to firstly gather all of the necessary documents and make copies of anything that might be relevant in supporting your case.

This would include anything that proves you have taken out a policy, and shows that you have been making payments for it.

Oftentimes you can show you have been making payments simply by showing your paystub or bank statement.

The next step in the claim process requires one to write a letter to the mortgage, loan or credit card provider who sold you the PPI.

There are many banks and brokers out there that have templates that aid you through the process.

These templates are helpful and necessary since the Financial Ombudsman Service also uses these forms.

Along with the form, you must include all the documentation and need to explain in detail on the form why you were mis-sold PPI. The more detailed you are on the form, the better.

Once you have all your paperwork in order and the form filled out properly, it’s time to mail your form to the Insurance Company that sold you the PPI.

Typically you will receive acknowledgement from the Insurance Company that the claim was received.  From that point it usually takes about eight weeks for the claim to go fully through.

It’s vital that one stays on top of all claims since if you do not, no one else will and it’s easy for the claim to slip through the cracks.

If one has not received a decision or response within eight weeks, a letter of complaint should be sent to the Financial Ombudsman Services.

There are also numerous claim management companies that exist to help you through this process that can help monitor the claims and put extra pressure on the Insurance Companies to ensure that you hear back in a timely manner.

Payment Protection Insurance (PPI) was an insurance product that was designed to protect people should they become ill, disabled, lose their job or face other circumstances that may prevent an individual from earning income, which could cause one to go into debt otherwise.

This insurance was supposed to help give one rest easy in times of need since, while it is not easy to pay off one’s debt in full whilst not working.

PPI was supposed to help one pay the monthly credit balances to ensure that one remains in good credit standing during the unforeseen difficult time in one’s life.

Since every policy is different, how long one’s PPI lasts depends on the plan that one selects.

Regardless, having a PPI is something that every working individual should have because it provides:

  • Protection of one’s credit line
  • Peace of mind
  • Sense of security in times of need

While law in the UK does not require the insurance, the majority of individuals working today opt to have some sort of coverage since in the event that one’s job is lost having credit coverage is of upmost importance.

Although PPI has been put in place in the UK in order to protect working individuals should bad luck arise, there have been numerous instances of mis-sold PPI plans, which could entitle individuals to file for PPI claims.

PPI

Prior to selecting PPI coverage, it’s important for the individual to do research on if PPI insurance will work for you.

While PPI is typically beneficial to many, there are certain areas that it does not cover.  For one, the first 90 days after one stops working one needs to be able to keep paying your credit bills yourself as PPI coverage will not start to kick in until after 90 days.

Next, PPI does not typically cover pre-existing conditions or people who are retired.  Also, there are numerous illnesses that PPI does not cover and as such one should check the list in one’s policy before purchasing.

Ideal Candidates

If you’re on the fence on whether or not to open a PPI policy then it is smart to do some further research instead of rushing into signing up.  You might was to consider PPI if you have a mortgage, loan or credit card repayments and if you want to make sure you continue to pay them if you fall ill or are made jobless. If you do decide to buy Payment Protection Insurance, and you have to choose, you should probably insure your mortgage before any loan or credit card commitments.

If you think you need a PPI plan, you should take extra care. Read through the policy documents and ask the insurance company – or an independent financial adviser or insurance broker – to explain anything you don’t understand.  It is better to be safe than sorry, to don’t be afraid to do some thorough research and investigation before signing the agreement.

PPI