An exclusive form of insurance known as Payment protection insurance, or PPI in short, is the one wherein consumers are protected against the repayment of loans in the event of the death of the borrower, disability, illness, loss of job or any such inevitable circumstances that deters them from having a regular source of income required to honour the debt.
However, mis-selling of such policies has been a rampant menace in the UK. A considerable number of policyholders were unaware of being covered by this kind of policy and were denied access to PPI claims.
In 2011, the Financial Services Authority, or FSA in short, ruled that banks or other insurance companies which sold such claims without sound clarifications have to send letters to the concerned customers and explain them the procedure of getting back their PPI claims.
Nevertheless, as a wronged customer, one should also take steps to verify his eligibility as a claimant. The first criterion one needs to determine is possession of the PPI policy. Any payment made under the head ‘ASU’ (accident, sickness and unemployment), ‘loan care’ or PPI, appearing in the credit card statements, can be identified as the one.
It is only in proven cases of mis-selling, that is, policies sold under marketing tactics not conforming to FSA standards, that one is entitled for PPI claims. The instances that qualify as mis-selling are:
• When taking the policy, one was a student, self-employed, unemployed or a retired individual.
• If one had a pre-existing ailment that could have dissuaded him from taking up employment and if one was not warned about it.
• In the event of the non-disclosure of the entire cost of PPI and only the loan cost has been mentioned.
• If the bank or the insurance company selling the policy already has a history of FSA action against it.
• If key features of the policy like cover’s cancellation or other exclusions were not clarified.
Can YOU claim back PPI ! Have you been missold PPI step one make a claim at PPI Claim Line