PPI compensation

This article is written for public benefits. if you read this article, it will give you a clear idea about payment protection, PPI, reclaim PPI, PPI compensation etc.

When engaging with a financial institution over obtaining a loan, credit card or HP agreement you’ll most likely have taken out some form of Payment Protection Insurance (PPI). PPI is an insurance policy to cover repayments in the event that you are unable to work, either because of sickness or redundancy. However PPI has recently been shone under a bad light due to many people being mis-sold and therefore entitled to PPI compensation. 

PPI is very expensive and can amount to as much as 13% to 56% of the actual loan/credit amount. Some people are paying for aspects of a policy that do not apply to them. Below is a list of factors to assess when claiming for PPI compensation: 

·         Insurance cover details

·         Unemployment cover

·         Medical aspects

·         Single premium loan purchases

·         Whether you have consolidated your borrowing 

Mis-sold PPI is usually a case of either people not having all the information fully explained to them or being urged to do so or even worse, automatically being sold PPI alongside a loan due to the box being pre-ticked or not stressed that it is compulsory. Shockingly, some providers insert important exclusions within small print so they can sell their policies without having to worry about future claims.Most insurance policies are sold with a loan or credit card and rely on information provided at the time of sale by the lender. This gives the lender the responsibility to explain the insurance terms & conditions, regardless of how good or bad. All polices have certain exclusions and these should have been explained in detail. 

In order to begin a claim for PPI compensation you should first contact the bank or company that sold you the policy. Certain companies offer advice and help as to how to pitch your claim as well as offering template letters. Your complaint should then be dealt with within 8 weeks. If you are unhappy with how you are dealt with or don’t hear back at all then you shouldcontact the Financial Ombudsman services (FOS) to see if your PPI compensation claim was acted upon fairly and lawfully. If the FOS finds your complaint eligible then it can order the provider to refund you on the premiums and your PPI compensation can be awarded as high as £1000.

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