Payment Protection Insurance or more commonly known as PPI is a type of insurance policy that comes along with mortgages, auto loans, and credit cards. The primary purpose of PPI is to provide assistance to the borrower with their repayments in cases of death, sickness, disability or unemployment. The policy serves as a backup for someone’s inability to pay debts, and it’s worth noting that PPI is very helpful especially in times of financial hardships. However, in the recent years, financial institutions mis-sold thousands of PPI policies.
A significant number of people were led to believe that they were acquiring a legitimate PPI policy. Many lenders took advantage of the complexity of this coverage, and they started selling it incorrectly. Many of them insisted that the PPI is mandatory in order to qualify for loans and the worst thing is, the PPI that was offered was overpriced. Also, a lot of financial institutions are guilty of not disclosing relevant information such as policy restrictions and penalties for failed loan payments. Now, if you are one of the many people who needs to file a ppi claim, it is advisable that you seek assistance from professional PPI claims company. However, if you want to do it on your own, then you have the liberty to do it. Just keep in mind that the process is complicated.
Now, if you have a PPI policy and you’re wondering if whether the coverage was missold or not, you need to do a thorough research. You must check your papers, documents, and statements. Also, you can try to call your loan provider and verify it with them. If proven that there was an incorrect PPI policy that was sold to you, next thing that you need to do is formally file a claim.
Start The Claim Process
A claim is received through the website or email depending on the company that you are dealing with. A claim form will then be sent to you for completion. Next, you must fill out the details indicated in the form. This may include details of credit cards, auto loans, and mortgages. Thus, it is strongly advisable that you keep the necessary information handy. After filling these forms, you can then mail it back to the company.
The next process involves looking for evidence to prove cases of mis-sold PPI. If there is any proof, a complaint is then sent to the lender for compensation purposes. The lender or bank is expected to confirm that indeed they mis-sold the PPI. Upon confirmation of the mis-sold PPI, the bank will liaise with the insurance company to pay the compensation together with interest. The process may take between eight and sixteen weeks.