You’ve probably seen adverts on television and around the web of people who have made a claim for payment protection insurance (PPI) and received thousands in compensation. If you’ve had a loan, credit card, or mortgage in recent years then you might be eligible to make a claim yourself and also receive compensation. However, it’s a bit more complicated than that.
Throughout the next few sections we’re going to talk about the eligibility criteria for making a PPI claim.
Were You Mis-Sold PPI?
The PPI scandal has grown massively over the recent years and it’s made people believe that every PPI policy was mis-sold, although this isn’t the case. In the list below we’ve outlined four key points. If you can relate to any of these points then chances are that your policy was mis-sold:
1. You were not eligible for the policy – the eligibility criteria for taking out a PPI policy can vary from one lender to another. You should pay special attention to age, employment, and residency.
2. You weren’t told that the policy was optional – PPI was often sold without the consumer knowing that it was optional or even included in their loan, mortgage, or credit card.
3. Limitations on the policy – if there were limitations on the policy that would have made it unlikely for you to make a claim.
4. Hidden costs and benefits – if the costs and benefits of the policy were not made clear to you.
Making Your Claim
The above section should help you determine if you are eligible to claim compensation for being mis-sold PPI. However, do keep in mind that the list is not complete and you will get better results by talking to a professional.
Now, after you have determined your eligibility there are two ways for you to proceed: you can either file the claim yourself, or you can go through a claims company.
Filing the claim yourself means that you’ll be able to keep all the compensation that you are paid out by the bank, but the process can be much more time-consuming and it can be overwhelming for some people. With a claims company on the other hand, you’ll pay a fee (usually in the region of 10-25%) and you’ll have your whole claim handled for you from start to finish.
Has Your Claim Been Rejected?
Every now and then, a claim will be rejected by the banks for reasons that we just can’t be sure of. Sometimes it’s because the bank feels that the policy wasn’t mis-sold, other times it might be because of an internal error.
Nonetheless, if your claim has been rejected or your bank hasn’t responded to you within 8 weeks then you can take your claim further. You should make a complaint to the Financial Ombudsman Service (FOS), they will be able to help you with your case and make sure you are paid the right amount of compensation.
Considering that the average PPI payout is £2,750 it’s completely understandable that everyone wants to make a claim and receive compensation. Although, not everyone is eligible. Even if you think you are eligible, you should always do enough research so that you can be sure.
Once you have determined your eligibility by following the advice and guidance that has been provided above, you should then go on to file your claim—we have also talked about this in the above sections.