Payment protection insurance, otherwise known as PPI, has become controversial in the past few years because of allegations involving mis-sold policies, to the point that government agencies had to intervene in behalf of the consumers who unknowingly bought insurance that they will not be able to make use of. Even with the involvement of the government, there remain cases of mis-sold PPI today due to unscrupulous insurance providers who will do anything to get their commission.
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.