How to Protect Yourself from Mis-Sold Payment Protection Insurance?
Payment protection insurance is a plan that is meant to cover the monthly repayments on mortgages, loan, or any credit agreement. Such insurances are sold to insure the payments, made by the borrower, if he is unable to make them due to the unemployment or sickness.
Banks and other lenders assure you for paying back all the fees and costs pertaining to mis-sold of such a policy. However the question is how you know that you have been mis-sold a PPI policy. From last few years companies have been mis selling PPI to their customers.
What is Mis-Selling?
It has been estimated that a large number of PPI policies were wrongly sold in last ten to fifteen years. People are indeed bothered and wondering the better ways to tackle this issue. This is the reason why people are now looking forth for better options to tackle this issue and want a reliable legal advice for the same.
Numbers of policy holders have found that this insurance is useless for them as they had no chance on claiming it. For example if you took this insurance when you were not employed, whether you were self employed or retired, then it will not be possible for you to make a valid claim. This is one of the methods through which such policies were mis-sold.
Such plan is not meant to be sold to anyone who is over the age of 65 or 70 years, and if you were then it is wrong selling.
When Can You Apply for PPI Claim?
PPI scam has become one of the biggest scams and financial institutions are working towards resolving it. Banks are now facing the problem of paying the due amount to the people, which is quite huge. Thus, it is expected that there will be no deadline for filing for such claims by the people. However it is still a proposal and has to be approved.
It is better for consumers to file for the claim in as soon as possible as it will assure that you will get the money as soon as possible. The more you delay greater will be the complication.
How to Claim?
Claiming process is not as complicated as you might have heard. If you hire the Claims Management Company to file a claim for you, then there is a fees attached to it. You will surely get back your money, but the company will deduct around 25 percent of the total amount.
IF you file for the claim yourself, then the process might be long as you need to know and understand the process well. There are chances that it will be declined.
First you need to gather all essential evidences and have the paperwork with you. Look for the references so as to determine how much you paid for the claim. After this you can contact your lender to report about the same and ask them to refund the amount. The amount can be claimed back with interest.
As soon as they receive your letter, they will investigate the validity of the claim. Your bank may take the time of 6 to 8 weeks to look into your PPI claim. They will resolve it by then or will inform you at the soonest.
You have the right to cancel the PPI, within 30 days. Some policies will give you more time for cancellation. In such a case, the person who is selling you the policy must tell you about the cancellation period.
If you have paid some premium, you should get all back all the money. Insurance companies are not allowed to deduct charges or levy penalty for cancellation. Sometimes an amount is deducted due to some policy matters.
Author’s Bio:
Nicholas Gibbs works for a popular law firm and he writes about different ways people can file payment protection insurance claim successfully. To learn more about the legal process of getting your money back, visit his website.
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Category: Insurance
