How to make a PPI Claim (Payment Protection Insurance)
Watch this HowTo.tv video to see if youâ€™re eligible for money back
Have you taken out a loan or credit card from a bank or building society?
Are you one of the 2 million people who have been sold insurance they don't need and can't use?
You may have been recommended to take out something called Payment Protection Insurance (PPI). It helps borrowers to meet the repayments of a loan if they are unable to keep up repayments due to accident, sickness or unemployment.
This works in theory, but in practice many people have had their claims turned down due to policy clauses and exclusions. The Office of Fair Trading estimates that there are around 20 million policies currently in force, with as many as 7.5 million further policies being sold every year. The profit the industry makes each year from the sale of PPI policies is estimated to be Â£5 billion.
The Financial Services Authority (FSA) have fined a number of High Street Banks and Building Societies for Mis-selling PPI which means you may now claim back the payments you have made.
In the following video, an expert from Belmont Thornton explains who is eligible to apply for money back.
Leading high street banks & building societies have been hit with fines running into millions of pounds from the Financial Services Authority for their part in the mis-selling of Payment Protection Insurance policies.
PPI, as itâ€™s known, is the insurance cover often included when you sign up for a loan or credit card and the F.S.A. have found that millions of customers may have been sold this cover without a full explanation of the costs involved.
Sarah-Jane Allen, Customers Services Manager, Belmont Thornton said: "We act on behalf of consumers who have been mis-sold these insurance products and weâ€™re now getting something in the region of a 1,000 enquiries every single day"
Consumers are now realizing that they have been paying up to half of their monthly repayments just to cover their insurance and with the FSA ruling against the financial institutions and with the recession still biting thousands of Brits are now flocking to apply for compensation.
Experts say there are some simple tips to check whether you may be entitled to claim compensation. If youâ€™ve taken out a loan or a credit card in the past 6 years:
* Was the full cost of the Payment Protection Insurance explained to you?
* Did the salesperson check to see if you were entitled to sick pay from your employer?
* Was it explained that the insurance might not cover the full term of the loan?
* Were you made aware that you could be paying more for the insurance than you would be able to claim back?
* Did they check your medical history?
* Was it explained to you that you could get cheaper insurance from other suppliers?
Sarah-Jane Allen continued: â€śCustomers are asking us if we can get their money back, and are delighted to find out that we operate on a no win no fee basis and that they get a payment in as little as 8 weeksâ€ť
The average payout for a successful claimant is two and half thousand pounds. So anyone who thinks they may have been missold is being urged to check.