The Financial Services Authority has this week reported that during 2011 banks paid out £1.
9 billion in compensation for mis-sold payment protection insurance (PPI).
The average payout for a successful claim was £2,750.
It is estimated that the final level of payouts could reach £8 billion.
With this in mind isn't it time you established whether you are entitled to a PPI refund.
Establishing if you have a claim The first step you will need to take is to establish if you have a PPI policy.
This is not as strange as it sounds as you may have been sold the PPI policy without realising it.
If related to a credit card you should be able to see any payments taken for PPI on your monthly statements, but for a loan or mortgage it may not be so obvious.
If in doubt contact your lender to find out.
The easiest PPI compensation claims to pursue are related to customers who were sold the PPI policy when they would never have been able to claim on it or where it was sold to them without their knowledge or consent.
A few examples of circumstances that may lead to a successful PPI compensation claim are detailed below: If you were not in employment at the time you took the insurance - whether self-employed, unemployed or retired - you will never be able to benefit from the policy; If it was not explained that a pre-existing medical condition that prevented you from working will nullify the policy; If you were sold a 'single premium' policy - in which the whole cost of the policy is paid up front and borrowed at the same rate as the loan attached to the policy; If you were told the insurance was compulsory; If you were not provided with or never had the terms and conditions of the policy explained to you; and If you were over the upper age limit (usually 65-70)that the policy will cover at the time of taking out the policy.
How much will my PPI refund be? Now that we have established the criteria under which you can make a claim, let's cover what a PPI refund should constitute.
If the Financial Ombudsman Service or the lender who sold you the PPI policy has notified you that you have a successful PPI compensation claim, ie you were mis-sold the PPI policy then you should receive all of the premiums you have paid plus interest at the applicable compensatory rate.
The claims process To make a claim you have two options: 1.
Pursue the claim yourself by contacting the lender who you purchased the PPI policy through, eg you credit card, loan or mortgage company, stating in writing why you feel that you are entitled to PPI refund.
If you do not receive an acceptable response write back to them again and if this fails to result in the PPI refund you believe you deserve you should revert to the Financial Ombudsman Service.
2.
There is an alternative.
Many people who purse a PPI refund claim themselves find the process time-consuming, stressful and frustrating.
A solution to this would be to approach a claims management company who specialise in claiming PPI refunds for their clients.
These companies have streamlined systems, often with a dedicated point of contact who will manage you claim from the first call you make and keep you updated on the progression of your claim to make the whole process as stress free as possible.
Whilst there is a small cost involved in utilising the services of a claims management company you do have the benefit and piece of mind of being able to sit back, relax and wait for the PPI refund that you are entitled to, to be paid!
9 billion in compensation for mis-sold payment protection insurance (PPI).
The average payout for a successful claim was £2,750.
It is estimated that the final level of payouts could reach £8 billion.
With this in mind isn't it time you established whether you are entitled to a PPI refund.
Establishing if you have a claim The first step you will need to take is to establish if you have a PPI policy.
This is not as strange as it sounds as you may have been sold the PPI policy without realising it.
If related to a credit card you should be able to see any payments taken for PPI on your monthly statements, but for a loan or mortgage it may not be so obvious.
If in doubt contact your lender to find out.
The easiest PPI compensation claims to pursue are related to customers who were sold the PPI policy when they would never have been able to claim on it or where it was sold to them without their knowledge or consent.
A few examples of circumstances that may lead to a successful PPI compensation claim are detailed below: If you were not in employment at the time you took the insurance - whether self-employed, unemployed or retired - you will never be able to benefit from the policy; If it was not explained that a pre-existing medical condition that prevented you from working will nullify the policy; If you were sold a 'single premium' policy - in which the whole cost of the policy is paid up front and borrowed at the same rate as the loan attached to the policy; If you were told the insurance was compulsory; If you were not provided with or never had the terms and conditions of the policy explained to you; and If you were over the upper age limit (usually 65-70)that the policy will cover at the time of taking out the policy.
How much will my PPI refund be? Now that we have established the criteria under which you can make a claim, let's cover what a PPI refund should constitute.
If the Financial Ombudsman Service or the lender who sold you the PPI policy has notified you that you have a successful PPI compensation claim, ie you were mis-sold the PPI policy then you should receive all of the premiums you have paid plus interest at the applicable compensatory rate.
The claims process To make a claim you have two options: 1.
Pursue the claim yourself by contacting the lender who you purchased the PPI policy through, eg you credit card, loan or mortgage company, stating in writing why you feel that you are entitled to PPI refund.
If you do not receive an acceptable response write back to them again and if this fails to result in the PPI refund you believe you deserve you should revert to the Financial Ombudsman Service.
2.
There is an alternative.
Many people who purse a PPI refund claim themselves find the process time-consuming, stressful and frustrating.
A solution to this would be to approach a claims management company who specialise in claiming PPI refunds for their clients.
These companies have streamlined systems, often with a dedicated point of contact who will manage you claim from the first call you make and keep you updated on the progression of your claim to make the whole process as stress free as possible.
Whilst there is a small cost involved in utilising the services of a claims management company you do have the benefit and piece of mind of being able to sit back, relax and wait for the PPI refund that you are entitled to, to be paid!
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