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You have probably heard of people who are filing claims for compensation protection (PPI) and get substantial income amounts of money back. Think that you could also qualify for a refund, but you do not know how to do it?
Well, while the claims deadline of August 29, 2019 is approaching more and more, this quick PPI guide is for you!
Payment Protection Insurance (PPI) is a product designed to cover repayments of purchases on credit when the credit holder is not able to do so. This would be the case in cases where they were dismissed or could not work because of an accident, illness, disability or death.
Between 1990 and 2010, no less than 64 million PPI policies were sold in the United Kingdom.
Although the PPI has a lot of merit, the Financial Conduct Authority (FCA) found that in a vast majority of these cases it had been poorly sold.
As a result of the findings, those who felt that they had been made were asked to file a complaint with their supplier and to seek fair compensation.
Over £ 33 billion has already been repaid to people who have complained about the sale of PPIs.
If you have ever used a loan or credit product, especially between 1990 and 2010, you are likely eligible for a claim.
If you are not sure if you have an IPP on one of your products, you can consult the corresponding documents.
Note that it can not always be listed as IPP. Here are some other names to watch for:
accident, sickness and unemployment insurance (ASU)
loan repayment insurance
mortgage protection insurance (MPPI)
How do you know if you have been misdirected?
So you had a loan or loan, but how did you know if the PPI that came with it was sold poorly?
According to the FCA, here are some of the scenarios that may indicate an abusive sale:
you were forced to buy PPIs or told you that you must have PPI
you were promised a cheaper rate if you bought PPI
you were told that your loan or credit application was more likely to be accepted if you purchased PPI
was added to the IPP without telling you
you were advised to buy PPIs that did not fit your situation or your needs
you were on your account, unemployed or retired but you were advised to buy a PPI
you had a pre-existing health problem at the time of the purchase of the IPP, which may have affected your ability to submit an insurance claim
you have been informed that a pre-existing medical condition was included in your PPI policy (or that it was not included)
It was not clearly stated that you would pay interest on the PPI if it was added to your loan.
it was not specified that the PPI would end before repayment of the loan or credit
What is the judgment of Plevin?
Insurers generally paid a "commission" to banks or other providers for the sale of PPIs. If you had a PPI, the money from this commission would come from the payments you made to the police.
A "high commission level" usually means that you have paid more than half of what you paid for your PPI policy.
In 2014, Susan Plevin filed a lawsuit against Paragon Personal Finance, revealing that more than 71% of the PPI that had been sold to her was a commission.
As a result of this, the Supreme Court ruled that suppliers should consider complaints about the commission they had derived from the sale of PPIs.
This means that even if your previous PPI complaint was rejected, you can resubmit a complaint using the Plevin decision as a basis. In this case, you will be able to recover some of the money you paid for PPI, if the bank or other supplier has reached a high level of commission from PPI but do not have it not said .
First of all, you will need to check if you have been sold PPI by contacting your supplier / s.
Once you have made sure of this, you will have to go through your documents to establish the amount you paid for the PPI.
If it sounds exorbitant and you think you have been mispriced, you should complain using one of the following methods:
PPI Complaint Forms
Most providers would have a PPI complaint form that you can fill out on their website. The FCA has a clever little tool in which you can search your provider and find the right page in a few clicks.
If you are a fan of good old-fashioned mail, you can write a letter to your supplier. Just be sure to send it well before the deadline of August 29, 2019.
You can also make a phone call. Just be aware that you may be one of the many callers, so be patient and do not give up!
Perhaps the idea of this type of faceless communication discourages you. Well, good news! You can also file your complaint at the branch.
What to include in your complaint
The more relevant information you can include to explain your claim, the sooner your supplier will have to review it.
In addition to your personal data, it is important to include the following information:
PPI Policy Number
Date of purchase of the PPI contract
Date on which you took out the loan / credit
Professional situation at the time of loan / credit subscription
The reason for your complaint. The more concise and clearly expressed, the better it is
All PPI Complaints must be sent to your Claimant or the Financial Mediation Service no later than August 29, 2019 at 11:59 pm.
Although you have the impression that you have ample time to resolve your complaint, it is always best to do so as soon as possible.
It is very important not to leave it at the last minute, otherwise you could miss the opportunity.
If your complaint is successful, the general rule is that you will get back all the money you paid for the policy plus interest.
According to the FCA, the average payment for misrouting is about £ 1,700.
Note, however, that millions of people have made PPI claims, so yours could be significantly fewer or more numerous.
People whose complaints are based on Plevin will only recover a portion of what you paid for the policy, plus interest on that amount.