Easy Guidelines to PPI Claims

Payment protection insurance plans were initiated by banking companies and other financial institutions to provide people with protection against their obligations in form of loans, store cards, mortgages and credit cards. Many of you might have opted for these schemes without proper home work of its various provisions or you may have been mis-lead about the hidden clauses and the schemes are not meeting your requirements. Mostly these policies are purchased by individuals to insure that they meet their obligations through them if they aren't able to do so because of subsequent sickness or unemployment. A policy may be mis-sold in the context that the person is self employed or is retired in which case he or she is not liable to claim. Thousands of such schemes were mis-sold under the aforementioned and other reasons. So naturally many individuals have opted to ppi claims or reclaiming these policies and this article will provide you guidelines in this context.

Policy providers and their obligations

Due to the above circumstances, a ruling has been formulated to which the whole industry has given consent, which means that now the banks will go through their policy records and identify the mis-sold ones. After identification the banks are liable to inform the policyholders of a possible ppi claim. The Financial Authority of Services makes the bank liable for identifying other problems in the selling of such policies e.g. the literature issued for marketing alongside such policies is not in compliance with the rules authenticated by this authority. For any of the above reason, the bank will inform the customer through a letter setting out the guidelines on reclaims.

Customer queries

1.       Post reclaim letter receipt

After receiving the aforementioned letter for ppi claims, a customer need to follow the steps as mentioned in the letter and pursue the claims accordingly. Receipt of such letter normally means that the policy has been mis-sold.

2.       Non receipt of letter

Non receipt of the letter does not imply that you are not liable to ppi claims against a policy mis-sold. This may imply that it was not due to a systemic failure on the part of the bank. It is also a possibility that the mis-sale was due to an omission or negligence of the concerned staff. One can go through different reclaiming guides for ppi which are available on the net and similarly template letters are also available to initiate the reclaim.

3.       Rejection of claim

If you have already filed a claim and it has been rejected, than the best way is to contact the Ombudsman Financial service and follow the steps they have outlined for reclaims. Banks are now liable to revisit the rejected claims as declared by ruling passed by high court. So the rejected ones are still in with a chance to file ppi claims and receive compensation through the above mentioned FOS authority and if you were rejected by both bank and FOS, than you are disable to further claims.