So much compensation has been paid out by the banks in recent years because of mis-sold payment protection insurance (PPI) policies. In fact, more than £20b has been paid out in compensation so far. This has raised some speculation that banks are now much more likely to reject claims.
If you’re worried about your PPI claim being rejected then that’s good, you should be—it’s the truth! Although, you shouldn’t let this worry stop you from making a claim. Here are some tips that you can use to give your PPI claim the best chance of success.
Prepare All Your Paperwork
Paperwork is extremely important when it comes to making your claim, you need strong evidence to back up your accusations or else your claim will have a high chance of getting rejected. You should always include paperwork relating to the financial agreement that you took out with the bank (i.e. loan, credit card, mortgage).
In addition, you might also want to include some supporting documents to help your case. This could include any communication you had with your bank to prove that the policy wasn’t properly explained to you.
If you don’t have any records of your paperwork, don’t worry. All you need to do is get in touch with a credit reference agency (i.e. Experian, CallCredit, Equifax) and obtain a copy of your credit file. Your credit file will show any loans, mortgages, and credit cards that you have had within the past six years.
Was Your Policy Really Mis-Sold?
Figuring out whether your policy was really mis-sold or not is one of the most important things you should do if you are worried that your PPI claim will get rejected. Even if your policy was mis-sold, there is a strong chance that it could be rejected by your bank if you don’t have evidence or a strong reason to back up your case.
Your policy was most likely mis-sold if one of the following occurred:
You took out the loan, credit card, or mortgage online and the bank used pre-ticked boxes.
You purchased from a broker and the commission structure wasn’t made apparent to you.
If you was told that the policy was mandatory.
If you could never have made use of the policy because you was/are self-employed, retired, unemployed, had a pre-existing medical condition, or already had/have cover from your employer.
Keep in mind that the list above is not complete and for a full list of mis-selling criteria (or for advice and guidance relating to your case specifically) you should contact a claims company. We’ll talk more about this in the next section.
Go to a Claims Company
If you don’t particularly want to deal with your bank directly, don’t have the time to, or simply have a busy schedule, a claims company could end up being your best friend! The company will be able to handle your claim from start to finish and ensure that you are getting paid a fair amount of compensation.
These companies have been the point of quite a lot of controversy recently, so you should have a criteria to find the legitimate companies. You’ll want to look for companies that don’t ask for an upfront fee and explain everything to you clearly. You should also make sure that the company is regulated by the Ministry of Justice’s Claims Management Regulation (CMR) Unit. You can find out more information by visiting the following link: https://www.gov.uk/government/groups/claims-management-regulator
There are many things that you can do to help your case, we have discussed three of the most important things in the above sections. In addition to the above, you should always remember to take your PPI claim seriously. The average compensation payout for a PPI claim is £2,750, which is a lot of money for many people.