PPI Claims: What You Need to Know

The mis-selling of Payment Protection Insurance (PPI) has caused a massive headache in the insurance industry, not to mention the harm it has caused thousands of people. If you’ve been mis-sold PPI, you’ll be happy to know that new rules have been put in place to allow you to reclaim your investments or at least, obtain a portion of it through a refund. Depending on your circumstances, you may be able to get all of the premiums that you paid for plus interest. Refunds may be calculated differently with each case and insurance provider. Eligibility You are entitled to reclaim your investment if you have been sold the PPI policy at a time when you have already retired, are unemployed or self-employed, and if you were afflicted with a condition that could have prevented you from working. If all the important information related to the policy was not explained to you, then you are eligible for a PPI claim. An insurance agent should detail the total cost of the policy, what situations are and aren’t covered under the protection as well as other terms and conditions. You should not be younger than 18 years of age or older than 65 when you were sold the policy. A lot of times, PPI policies are sold together with other types of loans such as mortgages. You may be unaware that you have been paying for this insurance all along and if you were not informed by the agent that you took out the loan from, then you are eligible for a claim. Claims Process Once you have determined eligibility, the next step is to let your insurance provider know that you are making a claim. You can do this formally through a written letter that should contain all your account details along with the reasons why you think you have been mis-sold or treated unfairly. This process will probably take about two to eight weeks although you can send follow up letters to the insurance company should they fail to at least acknowledge the complaint within a reasonable period of time. If the insurance company is resistant to your claims, you may need to seek government help and you will be assisted accordingly. How to Avoid Mis-Selling Dealing with mis-sold insurance policies can cause a great deal of distress for policy holders and it is best to keep a few guidelines in mind to prevent similar occurrences in the future. Be very discerning when dealing with insurance agents. Ask for proper identification. Don’t feel you have to give in to their request for an audience. If you’re not interested, say no. If you decide to speak with an agent, tell him outright that you want everything explained in simple terms. I f you have trouble understanding, ask a lot of questions. By no means are you obligated to sign up with the agent right then and there. If the agent insists on signing you up right away, walk away. Agents that transact exclusively by phone are almost always dubious. Chances are, you’re being mis-sold so shun all attempts made through phone calls.