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Get rid of your doubt and reclaim a mis-sold PPI

Knowing that you were mis-sold PPI has caused you trouble enough because the payments you made to it could very well have just been spent on something more important than a dead policy. You and millions of other consumers share that same feeling of frustration and anger towards the bank that devised the schemes to sell PPI. However, your frustration only got you too far and you are still hesitant to even clarify this issue with your bank.

What is PPI and how do you really know it was mis-sold?

Payment Protection Insurance in a nutshell is an insurance policy designed to help credit consumers with their repayments if they suddenly become unable to because they got laid-off from work, got sick for a long time, or had an accident. The policy covers a portion of what is owed to the lender until such time that the consumer is able to keep up, or for 12 months, whichever comes earlier. It is normally sold alongside any form of credit agreement – loans, credit cards, car financing, and even mortgages.

Unfortunately, there has been a number of ways that banks and other insurance brokers have devised to sell these policies outright, to the point of breaking the law and breaching sales regulations. This was discovered several years ago and a High Court ruling was made to make sure that the mis-selling is stopped and those who became victims were compensated. This led millions of consumers to start making PPI claims with the help of PPI experts or by doing it on their own.

But how do you really go on about reclaiming your PPI policy payments? Well, you may need to find out situation that you were in at the time you were offered the insurance and take it from there. Generally, what you need to establish at this point is whether you have been clearly informed of the procedures that should have been followed at the time you were taking it out. Limitations to insurance coverage generally include self-employment, employment in a family owned business, retirement or nearing the age of retirement, overage individuals, changes in work circumstances, and pre-existing medical conditions. These general situations should have been clearly mentioned to be ineligible for claims and you should have been informed of the other surrounding circumstances before you were convinced to have taken out the policy.

When you’ve got a clear recall of how the policy was mis-sold to you, you can put it in writing and send it over to the bank for a review. Remember to also attach pieces of paperwork to prove that you have had PPI alongside your credit agreement for quite some time now. The bank will refer to those bits of information in your documents and the ones they have in their database to weigh how valid the claim is. Also, they’ll have to touch base on their sales channels’ practices to prove if any regulations were breached.

You will be contacted immediately when a decision is made. When successful, your bank will make the arrangement to return all the money paid to the insurance policy and the interest since it started. If they reject your claim, they will have to tell you why and inform you of the details surrounding their decision.

If they don’t contact you or they decided otherwise, your claim can still be looked into by the Financial Ombudsman Service. File a complaint against your bank and let the Ombudsman take charge. They’re going to contact your bank about it and ask how they came up with the decision of rejecting your claim or give you a less amount of reimbursement as what it should be. Whatever the case is, the Ombudsman will decide on it after their review.