Is it too late to make a claim on PPI?PPI mis-selling was one of the biggest bank and lending scams of the last couple of decades. You’ve no doubt noticed the number of ads on TV telling you that you should claim for a refund if you think you were affected.
What is PPI?
When you take out a loan or get a credit card your bank or building society will offer you PPI or payment protection insurance. You pay a small amount to cover you if something goes wrong such as losing your job or getting ill. PPI was also mis-sold on home mortgages, endowments, store cards and overdrafts.
In essence, it’s a useful thing to have but banks and other lenders have been guilty in the past of mis-selling these types of product. A while back they were ordered by the courts to pay back any amounts that had been mis-sold to customers plus interest.
Have you been Mis-sold PPI?
You need to check out your previous loans and see what you had been offered. There are a number of ways that PPI can be mis-sold. If you had an illness or were unemployed at the time you took out the loan, then that is a clear case of mis-selling the insurance.
A number of people were also sold PPI without their knowledge or consent by lenders looking to make a profit. Others were told that they had to take out PPI before they were granted a loan or simply didn’t have the policy fully explained at the time.
All these are cases for claiming that you were mis-sold PPI.
Is it Too Late to Claim?
There is talk about there being a bar on older claims and the regulator once again reiterated this last August. Time could be running out if you are considering claiming for older loans (probably those over 6 years old). It pays to get a PPI claim lodged as a matter of urgency if you think you have a case. Should I Go to a PPI Claims Company?
The first thing to discover is whether your loan came with PPI attached. You can do this by checking your loan details, if you still have them, or contacting the loan company to see if it was included. If you haven’t got a copy of your agreement, you can get one from the lender, usually for a small cost of about £1. If you can’t remember which loans you’ve had over the years, you can check your credit file on a service like Experian or Equifax.
Should you head straight for a PPI claims company? These charge a percentage for any PPI claim they successfully make and can seem like the easy route to success. However, you can just as easily write to your lender, bank or credit card company and request a refund. There are numerous templates online that can be used if you don’t know how to word things. A lot depends on whether you want to do everything yourself or want to hire a legal firm to do it for you – make sure you check them out thoroughly before you sign any contract or agreement.
What Payout Can I Expect?
If you are eligible to claim back PPI, the amount can run into the thousands and provide you with a significant amount of money. You need to be clear why you think you have been mis-sold PPI and the institution has an obligation to contact you within 8 weeks to say they are working on your claim. Don’t expect it all to happen quickly. There’s no obligation on banks to pay out within a certain time and there’s a big backlog of PPI claims out there. A legal firm may well be able to hurry things up more if you are going down the claims company route.
The amount that has been claimed so far is only the tip of the iceberg and you need to act soon if you want to claim a PPI refund. It’s not that difficult to do and it could put several thousand pounds back in your pocket.