Sunday, 29 January 2012

How do you go about making a PPI claim?

By Abigail C. McKenzie


PPI: Protective Insurance - It started as an insurance to protect those with loans who found themselves suddenly unemployed; as a result of illness or otherwise. An agreed sum would be taken from their salary each month, in return for their PPI covering the monthly sum of their loan should they be made suddenly unemployed or unable to meet the costs.

Companies have been known to provide PPI to people who are already unemployed or sick. As a service PPI is designed to protect against these very things- it makes no sense. Yet still customers are allowed to pay for something they will never reap the benefits to, and if they haven't been advised against it are well within their rights to reclaim the lost money. Some borrowers just don't realise that PPI has been included on their loan package, or that they have to have it for it to get the loan.

If you think you could be have been mis-sold PPI within the last six years, your first port of contact should be the firm that sold it to you in the first place. It doesn't matter if they were working on behalf of a different company. Write them a letter clearly stating your complaint- why you feel you were mis-sold the insurance.

Most banks have stopped selling PPI - The sheer amount of founded complaints have led to most of the top banks (such as Halifax and HSBC) ceasing to offer Payment Protection Insurance altogether. This alone shows that big establishments do not always get it right. It is most definitely possible to claim your money back, and often receive thousands of pounds in compensation. The fact that the banks have backed down gives hope to those who have taken PPI out with other similar loan organisations.

You don't even need to spend more money employing a third party company to pursue the case for you; it is perfectly viable for yourself and the Ombudsman to deal with any action that needs to be taken. There have been so many cases of mis-sold PPI that it is now less troublesome to get your complaint taken seriously. The media, the Ombudsman and other victims are on your side; don't be intimidated by the whole process. It may well be worth it in the end.




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