Understanding PPi (Payment protection Insurance) Claims And the Process
It is important to understand what PPI is and what is benefits and uses are. Basically, PPI (Payment Protection Insurance) is an insurance product. It stands for payments protection insurance and it is supposed to protect borrowers and other consumers with debt of one form or other. When formal institutions such as banks advance loans to consumers, they are obliged to repay the entire loan until completion. However, down the line, something unfortunate may happen. For example, a person may fall sick or lose their job, making them unable to make their regular debt or loan repayments. This is where PPI cover comes in. it will step in and meet these payments on behalf of a consumer until they recover from their predicament or for a period of up to 1 year.
Who Issues PPI Insurance Policies?
Basically, insurance companies provide insurance to the consumers who take out the loans or credit facilities. This includes consumers with credit card debt, loan mortgages, car finance and all other debt from regular or formal financial institutions. Usually, the lenders will process the applications on behalf of the insurance company. For example, a bank will process a PPI insurance premium for a mortgage holder on behalf of an insurance company.
What are PPI Claims?
PPI Claims are claims that consumers or holders of this insurance cover can receive compensation if they were mis-sold the insurance cover. Apparently, banks and other lenders were taken to court by consumers in the UK. They were charged with mis selling PPI. This was done by using wrong information, misinformation and even misleading information. Some consumers were informed that this product was compulsory, others were not provided proper information while many others were unaware they had even purchased the insurance cover. The UK courts ruled that this was wrong and was against the law. The lenders, including banks, were found culpable and were ordered to refund or compensate all consumers who were wrongly or illicitly sold this PPI cover claim.
How To File A Reclaim
In order to file a successful ppi claim, a person will need to understand how the process works. As most people have no information, they choose to work with agencies that help them process their claims. The process is pretty easy and straight forward. Any consumer in the UK with PPI cover that they believe was wrongfully sold to them will need to fill in an application for, attach the necessary documents and submit their application to the government. The government will assess the application and if it is in good order and all documents properly filed and submitted, it will be sent to the banks for payments. Banks are required to pay all claims submitted from the government according to the court ruling.
Where To Find Help
If you need to receive help filing a claim for compensation, then the best way of going about it would be to consult firms or agencies that were set up specifically to help individual consumers file a successful application. These firms are private firms that have been set up specifically to assist willing consumers file claims for their PPI. Basically, filing a claim is free and no consumer should be charged any amount. However, those who choose to use the help of these private firms will be charged a small fee. This fee will be charged simply for purposes of assisting the claimant file their claim. The fee is charged only upon successful filing with the amount being deducted from the payments paid out.
The Reclaiming Process
The process will basically involve filing claim with the office of the financial ombudsman in the UK. The filing will include an application letter stating the applicant’s case. It will also include a form that is duly filled out as well as some form of evidence regarding the claim. These include insurance forms and similar documents. These will be compiled, filed and submitted. Basically, most applications received by the financial services ombudsman are processed and they do get approval for compensation. Banks compensate applications usually within a period of two weeks, with a majority of applicants receiving about £3,000 in compensation for their claims. It is important to have this information.