PPI, also known as Payment Protection Insurance has quickly become a buzz word in the world of financial products. Thanks to the PPI miss-selling scandal, most people don’t take kindly to a mention of the term PPI. But do you know what PPI is? Do you know whether you have it?
Payment Protection Insurance is a form of insurance sold to you by companies that give you a loan. This could be for any kind of loan from an unsecured cash loan to a credit card. PPI is basically there to ensure you are able to keep making your loan payments even if you lose your job or in the event of an illness.
How PPI was Miss-sold
PPI became quite unpopular when it was revealed that the insurance was sold to people who would never be eligible to claim it or to people who were covered through other means without them knowing.
The PPI was often bundled into the loan when people would apply and it was also very poorly explained to them, or not at all. The insurance was also included in loans to self-employed individuals with pre-existing conditions, basically, people who would never be able to claim it.
How to Tell if You Have PPI
If you took out a loan in 2012 or before, when PPI was still being sold, you probably have PPI. This is true even if your loan provider did not talk to you about the insurance when you were applying for the loan or credit.
But the best way to be sure is to take a look at the paperwork you got at the time the loan was taken. If there is no paperwork, you can find out if you have PPI by simply contacting the credit provider and asking them if they loan or credit card is covered.
You may also be able to find PPI payments in your past statements although you may not find it as PPI. Look for any extra charges in your statements, often marked “protection cover.”
How to Reclaim PPI
The first step when you want to reclaim PPI is to collect all the documents related to the particular loan. Mae copies of all the original loan agreements, statements you may have and even any correspondence between you and the loan provider or credit card company.
Once you have all the documents ready, the next step is to contact the best ppi companies to formerly begin your compensation request. There are a lot of templates you can use to write the letter, although you should ensure it contains the following information;
- The reference number or name of the complaints manager assigned to your case.
- Your credit reference number as well as the PPI number
- The date the PPI policy was undertaken
- The type of financial product it was tied to
- The reason you think the PPI was miss-sold.
- Your contact details and the contact details of anyone else who may be involved in the claim
Your bank should respond to your claim quickly. If it takes more than six weeks, you can go to the Financial Ombudsman.