Payment protection insurance has become one of the most controversial insurance policies in the market. Since cases of PPI mis-selling have increased, the Financial Services Authority and other organisations have tried to find ways to solve this pressing issue. However, when this insurance policy is sold in right circumstances, it can actually help consumers attain financial stability in no time.
Payment protection insurance the basics
Before purchasing this product, you have to be familiar with how it works. This way, you can easily decide whether this policy suits your financial needs or not. Here are some of the most important things you need to remember about payment protection insurance.
A PPI policy can be purchased while you are applying for loans, credit cards, mortgages, or other financial agreements. In its terms and conditions, an agreeable sum of money will be paid out every month to cover a specific percentage of your monthly repayments. Every time you are unable to work due to illnesses or injuries, you can use this policy to avoid problems in your monthly repayments.
The terms and conditions of payment protection insurance may vary from one policy to another. Most policies can pay for your loans and mortgages very 12 or 24 months. When the specific timeframe has lapsed, you will need to find a way to pay for your monthly repayments on your own.
Filing your PPI claims
Four important steps are included in the process of filing PPI claims. After you have done these simple steps, you can easily get the compensation you deserve. As a victim of mis-sold PPI, always remember that you have the right to file complaints about the lenders or insurance companies who took advantage of you.
First, you need to know whether you have really finalized your purchase or not. Since this insurance policy is usually included in other financial agreements, you have to make sure that you really have it before making a claim. Aggressive lenders and insurance companies may have already sold you this product without you knowing it.
Next, find out how you can claim your PPI refunds. If you were sold this product within the past six years, you still have the right to claim a refund even if it is already expired. However, you will need to present your copy of original documents to confirm the legitimacy of your previous purchase.
How were you sold this product? If you were told that this policy is mandatory, you have greater chances of getting a refund. You will also have perfect grounds for a complete refund if you have never claimed a part of the payment protection policy. If the seller still offered you this product despite your inapplicable employment status and pre-exiting medical conditions, you have the right to complain about their grave misconduct.
Now that you have already checked your PPI policy, you can file your initial complaint to the credit provider or bank who sold the plan to you. If ever they reject your complaint, you can always obtain the deadlock letter and report your case to the Financial Ombudsman Service.
If you are not too keen about the complicated process of filing complaints and getting refunds, you can always hire a claims company to do all the hard work for you. Their experience in handling cases of mis-sold PPI can increase your chances of winning your case and getting a full refund. However, you must be prepared to give them a part of the compensation you will get in exchange of their professional services.
These are the most important things you need to remember when handling your payment protection insurance and filing PPI refunds. As long as you have a complete understanding of your rights as a consumer, you will never be a victim of aggressive lenders and companies who wish to charge fees without your consent.