Claiming for mis sold PPI can result in you being paid thousands of pounds in compensation. You could be eligible for a return of all the premiums you paid, interest on this money and a compensation payment.
- How to make PPI claims yourself
- What if a Bank rejects your claim?
- Should you use a Claims Management Company?
How to make PPI claims Yourself
Making a claim for mis sold PPI yourself is normally straight forward. The banks have admitted to mis selling on a huge scale. They have put aside over £20 billion to cover the compensation that they have to pay out.
You can make claims against accounts which you have previously paid off in full or which you are currently repaying.
You must make your complaint directly to the bank that sold you the insurance. You should write to them confirming your account number. Also include all the reasons why you believe you have been mis-sold to.
If you would like a template letter please contact us and we will e-mail one to you. The letter can be amended with your details. You should send the letter to the original creditor recorded delivery to prove postage.
What if a Bank rejects your Claim?
Do not be put off if a bank rejects your claim. They may state that there was no mis selling and the insurance was sold to you within the rules.
In these circumstances write back disagreeing with them. Demand that the matter be resolved within 14 days or you will escalate your complaint to the Financial Ombudsman Service (FOS).
If after this you still feel that you have been unfairly treated then you will should escalate your complaint to the Ombudsman. It may then take 12-18 months to get your case reviewed. However this is well worth doing as FOS do uphold a large percentage of complaints.
Should you use a Claims Management Company?
If you feel unsure about making PPI claims yourself or do not have the time to get involved with the claims process you could use a commercial Claims Management Company.
The company will establish whether you have valid claims and then manage these on your behalf. They will make a charge for their services. There should be nothing to pay up front. Their fee will normally be around 15% – 20% of any money you get back.
If you still owe the bank money then any compensation you are paid can be retained by them. They do not have to give it to you and can instead use it to pay down the debt you owe them.
If you have debt with the bank you are claiming against you may not be able to use a Claims Company. If your claim is successful you will not have any cash to pay their fee and so may end up getting into debt with them.