There is both good news and bad news for the people who find themselves the unwilling owners of a payment protection insurance policy. The good news is, it is possible to get refunds as well as damages as a result of buying mis-sold PPI. The bad news is, it won’t always be an easy fight, because insurance providers will obviously not give refunds to every consumer that makes a complaint.

Before starting the process of reclaiming, be aware of the fact that this action will automatically cancel your insurance. Make sure that you neither want nor need the insurance prior to reclaiming so that you won’t end up regretting starting the chain of events. Furthermore, you will need to be sure that you actually have a valid claim in filing for refunds. There are several ways in which you can know this. If the insurance provider deliberately misled you into purchasing the PPI, you will automatically have a valid claim. Your chances of making a successful claim is reduced if the policy ended more than six years ago, especially if you do not have the paperwork to back you up. A successful insurance claim in the past will automatically nullify a mis-selling complaint, because it will denote that the policy was suitable.

The first step you need to take when you seek to reclaim is to contact the insurance provider itself. State your concerns to them and ask for the refund. The banks and the Financial Ombudsman have worked together in March 2010 to come up with a questionnaire which covers all details regarding PPI, which can be used by consumers to make their complaints towards the company in question. If the company isn’t registered with the Financial Services Authority (FSA), you are not required to complete filling up the questionnaire, but it’s still a good idea to do so in case your initial complaint wasn’t successful.

Sadly, many people won’t get what they want when they attempt to claim their money back. As already mentioned, the insurance providers may fight tooth and nail and claim that they did not mis-sell the policy that you bought.  In this case, the next step is to contact the Financial Ombudsman Service. Send a letter to their office regarding to your concerns. The Ombudsman will then evaluate your complaint to see if you have actually been mis-sold PPI. If their deliberation is in your favour, they can rule for the company to give you a refund.

Unfortunately, there is only so much that the Ombudsman can do. They can only help in cases involving companies regulated by the FSA. In case your policy wasn’t bought from an authorised firm, you still have a chance of getting your refund, by hiring a claims lawyer or company to handle their case. They know the ins and outs of the law and can thus provide a good fight for you in order to make a claim. The best part of it is that a lot of these have a no win no fee policy.

There are avenues you can turn to in order to make a claim for your mis-sold PPI, so don’t hesitate to try to get the refund if you have a valid stand, because you will be the one who will be at the losing end if you don’t fight for your rights.

A borrower can qualify for a PPI claim by submitting every document that will be required in the claim process by the insurance company. In buying a PPI, however, you should be very careful. It is not uncommon for some claims to be cancelled due to policy exclusions. It is highly suggested that one should first meticulously scrutinize exclusions as well as clauses before buying a PPI policy. Mis-selling of PPI claims is also rampant these days. Many companies and banks have in fact been fined by the FSA because of mis-sold Payment Protection Insurance claims.

In getting an excellent Payment Protection Insurance claim, it can be beneficial to get some help from professional companies. The fees that will be charged from services such as this are very reasonable so you do not have to worry about spending a lot just to ensure that your PPI transactions are ironed out. Just make sure that you choose a company which doesn’t charge any fees upfront and which charges a maximum of 25% of the claim upon successful completion.

In the United Kingdom, cases pertaining to mis-sold Payment Protection Insurance claims are not uncommon. However, there are many clients who have been able to reclaim PPI with the help of excellent companies. It is not hard to find out a great deal of information about claims companies online. By doing a little bit of research, you can actually find the best claims company that can help you with your Payment Protection Insurance claim.

• Do you really need this type of insurance? Do you have loans or credit cards that you wont be able to pay should you become sick, disabled, or rendered redundant? If the threat of not being able to pay your loans is significant, then payment protection insurance might be able to help you. Always measure your need for payment protection insurance before signing up for it. If you have no loans, credit cards, or mortgages, then purchasing the insurance product would be a waste of time and money.
• Are you already signed up for a sick-pay scheme? Some companies offer sick pay to employees who cannot go to work due to sickness. If you are being offered sick-pay, then you might not need payment protection insurance. You can use your sick-pay to pay off your loans, credit cards, or mortgages. Before signing up for payment protection insurance, ask your company if they issue sick pay.
• Do you have any other alternative sources for paying off your debts? Some people already have income protection insurance, life assurance, serious illness cover, or personal accident insurance. If you are one of these people, then signing up for payment protection might be a waste of your money. One of the things criticized about payment protection insurance is that its policies tend to overlap with other insurances. Try to remember the insurance youre signed up for and review their corresponding policies. Some of these policies might be able to settle your debts for you without having the need to sign up for payment protection insurance.
• Have you reviewed the terms and exclusions of payment protection insurance? Payment protection insurance comes with a myriad of terms and exclusions that prevent some people from making a claim. You should know that not all sicknesses are covered by PPI. Some sicknesses, such as pre-existing conditions or chronic illnesses are not covered by the insurance. Those who were fired due to misdemeanor will not be covered as well, while those who are self-employed will not be able to sign up. Those who have been briefed of being redundant at the time of signing up will not be able to seek cover as well. Before signing up for payment protection insurance, it is wise that you know all about it. You might be signing up for an insurance which you do not need.

What is Payment Protection Insurance?

Often referred to as PPI, this plan is considered as an add-on to any loan or purchase an individual will avail from a financial institution or a lending company. More often than not, payment protection insurance is designed to safeguard the monthly payments of the borrower in case something prevents him or her from doing so.

PPI covers you in case you are unable to work due to accident, sickness or unemployment. PPI will cover the basic amounts that are due for a maximum period of twelve months – basically a whole year.

Skepticism over Payment Protection Insurance

As discussed earlier, payment protection insurance is offered as an add-on to purchases. It may be those done with your credit card, store card, a car loan or mortgage. PPI was often sold at the same time as the credit, which meant that the borrower had insufficient time to consider whether they actually wanted to take out the policy.

Since many people feel that they were misled about this type of insurance, it is no wonder that millions of people are in line to claim compensation. You can find out if you qualify by investigating further or by contacting a reputable claims company.