How to Claim Back PPI
It’s not a fact that many people enjoy, but banks really do run the UK. Unfortunately, the immense power they carry can leave the rest of us feeling confused and bewildered at the constant ways they seem to be able to make money out of their loyal customers.
PPI, or Payment Protection Insurance as it's otherwise known, was one of the sneakier tactics used to squeeze customers for as much money as they were carrying: leading thousands of UK bank customers to pay thousands of pounds for often worthless PPI cover. Many are still paying for it today.
That doesn’t mean that PPI cover is completely useless: when sold correctly it can cover you so that if you suffer an accident or lose your job, your loan repayments will be covered. The controversy surrounding PPI was as a result of the mis-selling, and occasionally forced selling of PPI to people by banks who told customers that it was a compulsory part of the loan.
The initial controversy regarding PPI actually occurred several years ago, due to regulators now tightly monitoring the sales of the product, and handing out large fines to those who continue to sell it in the wrong circumstances. However, mis-selling does still take place.
So how can you find out if you were mis-sold PPI? Our guide below can help you work out if Creditline Financial could help you re-claim thousands of pounds.
An example of Mis-sold PPI
Unfortunately, there are many ways in which PPI is mis-sold, but the following is a good example of how it could potentially have been mis-sold to you:
Five years ago you had discovered a great rate on a £3,000 loan that the bank consequently informed you was ‘fully protected’, and you decided to take the loan out. However, what had initially seemed like a good monthly deal might actually have included a massive 25% of the loan fee for insurance you weren’t even aware you had or needed.
Using an example of a £5,000 loan at a rate of 7% interest, this means that you would be pay back an extra £950 in interest on top of the loan. However, the additional PPI you weren’t aware you were sold would add a massive £1,500 on top of the loan repayments!
The Financial Ombudsman Service, the Financial Services Authority and other financial bodies took many a loan company to task regarding this shameless tactic, ordering them to repay the PPI money back to the customers.
However, the initial controversy generated attention that has made more and more people aware of PPI, and the fact that they may have been sold it unawares.
In the UK, there are over 20 million PPI policies, which generate an astonishing £5 billion a year for financial companies. However, only a minute amount has been claimed back so far, despite the fact that claiming back PPI can be very profitable, with some claims reaching upwards of £15,000.
Talking to one of our Creditline Experts is definitely the best course of action to take, as we can run through the terms and conditions of the PPI agreement with you. The most important thing to consider initially is what you were told when you agreed to the loan:
There are certain key mis-selling categories:
1. If you were sold something that you did not ask for, or were not made aware of at the point of sale.
2. If you were unemployed or retired at the time: if you were, then ensure you were excluded in the Terms and Conditions.
3. Have you had a medical condition that excluded you from your PPI?
4. Has the company you obtained your loan from already been fined for mis-selling PPI?
Is your PPI claim Valid??
One main thing to consider if you are thinking of attempting a claim is whether or not your policy began within the past six years. If it did not, then the success of your claim will be affected by whether or not you have kept the paperwork from the loan: if you haven’t, then your chances of success are much lower.
If it was however, then begin by filling out our contact form, and we can get it underway!
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