Reclaim PPI Premiums

There are thousands of people who, despite the FSA applying new stringent guidelines with regards, are still being mis sold Payment Protection Insurance (PPI.) Chances are you have come across PPI in some form if you have had a loan, mortgage or credit card over the last 10 years. In the event that you become unemployed, PPI acts an as a cover to make sure that your loans are still paid despite your lack of income. However, there is much more below the surface.

The Financial Ombudsman Services (FOS) have stated that almost 100,000 people have told them that they have been rejected for an attempt to reclaim their PPI – certain banks are notoriously stubborn about this issue and are very hard to claim back from on your own. Out of these people, FOS have also stated that 80% of the claims that were heard by them were resolved in the favour of the customers.

A common reason for these decisions focuses on the mis-selling of PPI, either by giving inadequate information about the policy or by misleading the customers with regards to importance of the insurance. When took out as a single premium policy, the cost is calculated for 36-60 months and added on top of the original loan amount. A single policy is impossible to cancel and the customer can end up paying interest on top of the PPI at the same rate at which the main loan is calculated.

The most common ways of being mis sold a single policy is through loans and mortgages. PPI can also be bought on a monthly basis and it can be increased/decreased and cancelled – this is more common with credit cards. You can check your monthly statement to see if you have PPI. You cannot apply for it – and more importantly have been mis sold it – if you are retired, self-employed or even unemployed, as well as being eligible for sick pay and even crossing the upper age boundary. Civil servants who have PPI have also been mis sold.

There are many people who fall in the above categories and yet have been sold PPI which means they are entitled to claim back the money they have paid. There have been times when customers are told their loans would stand rejected if they did not go for PPI. Customers can also opt for cheaper options with a third party vendor, which again is a common tactic. Consumers can apply to reclaim their paid premium in addition to some extra compensation.

In order to apply for this compensation you can contact your bank and explain to them why you feel you have been mis sold and want to reclaim. You could contact an attorney or a claims management company if the bank initially rejects your claim, although you could be charged between 25-40% of your total reclaim. The Financial Ombudsmen's Service may also be involved in certain instances.