Advice on Making a Mis-sold PPI Claim
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What is mis-sold PPI?
Payment Protection Insurance (PPI) protects the repayment of a debt should a borrower be unable to make a payments due to accident, sickness or unemployment (ASU). It was mis-sold by many loan companies and high street banks for a decade, with products such as mortgages, loans, credit cards and overdrafts being covered with unethical, and now illegal, PPI policies.
PPI was mis-sold to millions of people across the UK. PPI is classed as mis-sold if: it was added to a loan product without the policyholder's knowledge; the policyholder was misled into believing that PPI was not optional; the policyholder was told that a loan or credit card was 'protected' without the full conditions or cost of the PPI being explained; or if the policyholder was led to believe that PPI would help with the approval of a loan. Online loans may have mis-sold PPI by the use of pre-ticked boxes, meaning you had to opt-out of PPI instead of opting in.
The mis-selling of PPI happened on a huge scale, with around a quarter of all PPI policies estimated as being mis-sold. This went on for a decade until April 2011. Last year the courts decided that selling PPI in these ways was unethical and told loan companies and banks to return around £4bn to 2.5 people in the UK. This money is only going to be returned to consumers who make a valid PPI refund claim.
Finding out if you have been Mis-sold PPI
Perhaps you now realise you have been mis-sold PPI, but what next? Look through your loan agreement and find out if you have been paying money for 'payment cover', 'ASU', 'payment protection', 'loan protection' or a similar term. If you feel that a PPI policy was sold to you under the pretences mentioned in this article you are entitled to a claim, even if your PPI and loan have since been completely paid back.
You may find that your PPI was paid as an additional charge with each loan repayment, or as a one-off payment at the start of your contract.
If you do not remember who the lender of your loan, credit card, mortgage or overdraft was, get a credit report, which will list all of your financial products for the past six years. It doesn't matter if you don't have a copy of your paperwork for your loan either; once you know who your lender is, you have a legal right to obtain a copy of your original agreement from them for £1. If your account is closed they are not obliged to provide this paperwork, but buying a full breakdown of your account will show you whether you were sold PPI.
The rules of mis-sold PPI claims state that you can usually only claim if your account was active within the last six years. So as long as you were still paying back a loan and its Mis-sold PPI six years ago, even if the loan was taken out ten years ago, you are due a claim.
How much can I claim?
A mis-sold PPI claims company will calculate this for you, as well as telling you if you have a case and guiding you to a successful claim. You will not be able to reclaim your full loan, but the mis-sold PPI on that loan will likely still be a sizeable sum which you can reclaim.
The figure which you are entitled to claim depends on the size of the loan, the cost of repayments and other factors. Someone who took out a loan of £3,600 for three years could be entitled to over £500. For bigger loans and mortgages this sum could be in the thousands. |
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Author Resource:-
Contact ABC’s expert Claims Management team to find out if you have been mis-sold PPI. They will give you a free no-obligation assessment and guide you to a successful mis-sold PPI repayment on a no-win-no-free basis.
Claiming back your mis-sold PPI
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By :
Jayden Baldwin
Submitted
2012-02-16 02:07:55 |
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