There’s a holiday trip that you have planned a long time ago. You know you deserve that after years of hard work, and you’re thinking of getting on that plane to go some place else you could just relax and not worry about work even for a few days. You try to book a flight online and you suddenly get a notification that your card was rejected. You check your credit limit and the available balance, and much to your surprise, you found out you haven’t got enough available to cover the amount of that plane ticket because there has been a charge for cardholder repayment protection. You have no idea what it’s about but it has gone over your head and frustrated you because it looks that the holiday plans will have to take a backseat.
You’re not the first to get shocked about these dodgy charges. Most people’s financial situations have been affected by quite the huge amount of money paid to Payment Protection Insurance in the last several years. And because it was applied alongside loans, mortgages, credit cards, and other forms of finance agreement, you are not only charged for the premium when signed up but it also gathers interest for as long as you have it. What you do about it depends on how things happened when it was first offered to you.
Most people these days are running after their credit providers to get their money back on these mis-sold policies. PPI claims have been flooding financial institutions and you could not be any different from these borrowers who became victim to such a fiasco. It might be true that it’s meant to protect you buy covering a percentage of your repayments in case you become unable to because you got sick, had an accident, or made redundant from work. But the way it was sold was just utterly questionable.
Banks and other sellers of this insurance have gone out of reasons lately just to shove the policy down their customers’ throats. That’s to be blunt about it. People were shocked to find out they were signed up to it without their explicit content. Some were pressured to take it thinking that it could increase their chances of getting their credit application approved. The policy was even sold to the ineligible, like underage and over-65 individuals, self-employed or temporarily employed, those with pre-existing medical conditions, and non-UK residents.
Your situation could be similar to any one of them. You should be wasting any time when you realise this. Claiming your money back is not as complicated as you’ve heard around. What you need to do to get your PPI claim started is to gather as much evidence as you can. Collect your paperwork and look for references to how much you paid and how long you have had the policy. Then contact your lender about it and tell them how it has affected your financial standing and you wish to get all the money paid to it back, including the interest.
Establish how you believe you were mis-sold. You could either have been automatically signed up to it, pressured to take it, or you were not made aware of the information that you needed to know. As soon as they receive your letter they’ll run an investigation to weigh if your claim is valid or not. Allow your bank to look into your PPI claim for about 6 to 8 weeks. They should be able to resolve it by then and they should notify you at the soonest.
There’s no time frame as to how far back you can claim as long as you’ve got the paperwork to support your case. Some people have been filing for PPI claims for as far back as those signed up in 2000. But remember that the records of your account from the banks itself and the credit bureau only remain active for six years following its beginning date or when it was last paid in full. So you’ll have better chances if you’ve got your paperwork kept safe if the account was older than six years.
If your bank has not contacted you, or their decision was very unfavourable for you even though you made your PPI claim solid, there’s still hope for this to be looked into by the Financial Ombudsman Service. The FOS is an independent body that could resolve this kind of dispute. File a complaint against your bank to the FOS and let them make further enquiries with your bank. Fill them in on the case with as much information as needed. When they decide to rule in your favour, they will require the bank to get you what you deserve.
There’s a greater possibility that you could be owed a hefty sum of money in premium and interest refunds. There are also cases that consumers are awarded a compensation for the trouble they have gone through it. It’s good enough to get your financial standing back on track. When your PPI claim is successful, you’ll be happy to know you might just use that refund for that holiday trip or cover the obligations that sort of lagged behind.