MILLIONS of people still have to request their reimbursement for payment protection insurance and the deadline is fast approaching.
About 60 million PPI policies have been sold in the last three decades – according to the British Financial Conduct Authority (FCA).
Four of the UK's largest lenders have paid back millions to their customers
The watchdog says that since 2011, consumers have received more than 30 billion pounds of repair.
But there are still many people who still need to claim, and a new decision means that clients whose applications have been rejected may need to appeal.
The same decision also means that simply having a PPI could be enough to pay you money, even if you knew you were selling it.
Making a PPI claim is easy, but with only six months to go before the deadline, you must act quickly.
Here's everything you need to know to make a claim.
When is the PPI claim deadline?
The deadline to submit a PPI claim is August 29, 2019.
This means that you must send your complaint to your supplier or to the Financial Ombudsman Service no later than that date – otherwise your application may not be taken into account.
If you complain by mail, you must leave enough time for your letter to reach the company.
It might be worth sending it by mail tracking so that you can prove that it has reached its destination on time.
You can complain on the phone, but know that queues close at midnight and can be blocked if many people leave their complaints at the last minute.
If you complain in the branch, be sure to note the closing hours.
Whichever way you choose to apply, you'll do better than expected, and the watchdog urges consumers to complain quickly.
What is a payment protection insurance?
The PPI was an insurance policy attached to credit agreements such as loans, mortgages or credit cards.
The idea of these policies was to cover payments when an insurance taker got sick, had an accident or lost his job.
Sales of these policies were popular from the 90s and the new millennium.
But then, consumer groups started asking questions and a series of investigations revealed that many people had been sold while they should not have.
One of the problems was that sales staff were encouraged to sell IPP at any price, which meant that many people were poorly sold.
Some consumers had fonts sold in small print that they were not aware of, others, an assurance that they could never claim (for example because they were self-employed or retired ).
One-time PPI policy sales were banned in 2009 and, despite the initial opposition, lenders were forced to review all IPP complaints in 2011.
How do you check if you have PPI?
You will need to verify the documents you signed when you purchased a financial product such as a mortgage, loan, or credit card.
It is also helpful to review any statements you have received, especially if you have lost the original documents.
Make sure to check the terms and conditions carefully to find out if you have been sold PPI.
Frankly, PPI has many different names, but the FCA has a list of useful terms to look for:
- Accident, sickness and unemployment insurance (ASU)
- account cover
- credit insurance
- credit protection
- loan loan
- loan insurance
- loan protection
- loan repayment insurance
- mortgage protection insurance (MPPI)
- payment cover
- protection plan
If you have lost all your documents, you should ask the company that sold you the financial product.
Many providers now offer online verification tools to help you check if you have a PPI. They will usually answer you within 8 weeks.
If you can not find any documents or do not know what loans you have in the past, you should check your credit report.
This will give you a list of all credit agreements you have entered into.
Write to all companies to find out if you have a PPI.
It is helpful to provide your full name, your address at the time you obtained the product and any other details you can glean.
You should receive an answer in 40 days. This could be much faster, but as the deadline approaches, it is important to give yourself enough time to gather all the information.
How to check if you can make a claim for abusive sale?
The Financial Conduct Authority has a handy checklist to help you determine if you have been misdirected. If you can answer yes to any of these questions, it is helpful to make a claim.
- Have you been pressured to buy PPIs?
- Were you told that you had to have a PPI?
- Have you been advised to purchase a PPI that does not suit you?
- Were you promised a lower rate or a better chance of accepting the loan or credit if you took the PPI?
- Has PPI been added without informing you? Some agreements automatically added PPI with pre-checked boxes, so you had to unsubscribe, not in
- Were you self-employed, unemployed or retired, but advised to take a PPI?
- Did you have a pre-existing medical condition?
- Were you notified if this condition was (or was not) included in your PPI?
- Has not it been clearly stated that you would pay interest on the PPI if it was added to your loan?
- Has it not been clarified that the coverage of the IPP would end before repayment of the loan or credit?
If you make an insurance claim via PPI, you can still be eligible.
If the application has been accepted, the money you have received will be deducted from the amount owed to you for misleading sales of IPP.
If your insurance application has failed, you can also file a complaint, but if it has been more than three years, you may be rejected.
The new decision means that you can claim even if you have not been mis-sold
A new decision, known as "Plevin", means that even if you subtracted PPI and thought you knew what you were doing, you might owe money.
Indeed, the huge amounts of financial institutions commissioned from PPI.
In summary, the decision means that if more than 50% of your payment is paid to the board and that this is not explained, you will owe all interests above that amount.
The average commission paid on PPIs was 67%. This means that for most people – the mere fact of having a PPI is enough for a refund.
It also means that if you have been rejected in the past, you could get redress.
As of August 29, 2017, 1.2 million rejected applications are now eligible under this decision; so it is interesting to check and appeal.
How to request a refund for PPI
You must first contact the company that sold you the product and it must respond to your complaint within eight weeks.
If they reject your request, you can contact the financial ombudsman service to have your case reviewed.
HOW MUCH CAN YOU CLAIM?
If your request is accepted, the amount you receive depends on your situation.
In the end, you should recover all your premiums plus interest.
Between 300 million and 400 million pounds sterling have been paid each month in recent years and the average payment is about 2,000 pounds sterling.
Complaining costs nothing. Free template letters that you can download from websites such as MoneySavingExpert.co.uk.
Consumer group who? has also created a free tool to help people make claims.
There are many claims processing companies that try to make people complain through them.
No need to do it and it will cost you money!
By processing the claim yourself, you will keep all your compensation.
What happens if your application is rejected?
Banks have been repeatedly fined for failing to process complaints correctly and some cases may have been wrongly dismissed.
If your application has been rejected by your bank or lender, send it to the Financial Ombudsman.
The ombudsman is an independent service that resolves disputes between financial service providers and consumers.
It is free and will decide if your provider should have paid.
Even if the Ombudsman has already rejected your appeal, you may be able to complain under the "Plevin" decision.
If more than 50% of your PPI bill is billed to the lender and you have not been informed, a refund greater than this amount is due.
the new rules have been established by the FCA but did not enter until August 29 of last year.
If you think you have been mispriced, you should first inform the ombudsman, but this is another option that opens the way for claims for millions of additional people .
Martin Lewis, founder of MSE, said: "So far, PPI only reimbursed you if the company gave you an inappropriate policy, such as coverage of self-employment, or lied to you, such as say that PPI was mandatory.
"Still, with Plevin, in most cases it's just" Did you have a PPI? Then you owe money.
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Reopening of cases
The Financial Ombudsman Service (FOS) may have to reopen thousands of cases of IPP after a secret investigation revealed insufficient training of those responsible for handling complaints, which sometimes had to use Google to search for products .
Undercover Channel 4 Dispatcher reporters spoke to FOS employees.
One of them said that, faced with difficult goals, the FOS had "made decisions" and that it was "impossible" to process all claims for compensation.
According to a report in The temperatureWhen an employee was asked if it was easier to oppose the complaint, they were heard and said, "Yes, because just calling the consumer, rather than trying to convince the company, much more difficult. "
Another said that they had "taken a chance and passed through a case, with any old decision".
An 18-month employee said, "Even now, I'm reviewing an investment record and I do not know what to ask. Sometimes I have not even heard of these products. I have to do a research on what it is first. "
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