How To Claim PPI Insurance
Payment protection insurance (PPI) is a kind of insurance product intended to cover the costs of reimbursing an outstanding loan in case the borrower loses his job or the source of his income. Although this kind of cover is usually sold by the insurance company, a lender can also offer it along with the original loan. In countries like the United Kingdom, PPIs have a very dreadful history; in many instances, lenders sold people a policy inappropriate for their situations, included it in the policy while the buyer didn’t have any idea that he was actually paying for it or the lender delude the borrower in order to convince that the policy was compulsory. In order to avoid such cases, there are some factors a borrower needs to consider.
Requesting a copy of your PPI claims is very important. The lender should be the one to provide it, although it requires you to pay administrative fees. Once the copy is in your hands, try to determine the reasons why the company misinformed you of payment protection insurance. This includes a policy the lender told you it was mandatory; and purchasing a policy the lender misinformed you into believing that it covered your appropriateness.
Be sure to verify you meet the time limit. Normally, PPI allows you to claim a refund within six years from the last day of the existing policy. This will be the time at which you need to fully pay the associated loan. You can visit PPI
for more details or make a claim.
It is imperative to write a formal complaint letter to the lender. The letter should include your complains about misspelling and your request to refund the premiums. It is possible that the lender will deny the case, but this does not imply the case is void. You should write a formal letter of complaint to the Financial Ombudsman Service (FOS). The letter should explain how the insurer missold or misled the policy. This can only be done once the lender ignores or rejects the complaint, or eight weeks after you have sent the letter to him. A case employee at the FOS will be the one to decide on the case. This normally takes between six to 12 months.
Further action is necessary. If the FOS case employee rejects or ignores the case, you can ask the assistance of the ombudsman. Keep in mind that the ombudsman is superior to the worker and he can make the final verdict. However, this usually takes several months or even a year to complete. If you want to know more about PPI claims, contact your state's department that regulates PPI or talk to the insurance company's agent.