Going broke from a mis-sold PPI – It’s up to you not to jump into that situation

So much has gone on since the discovery that Payment Protection Insurance was widely mis-sold to millions of credit consumers throughout the country. For years people have gone broke because of the amount they paid to the insurance policy that never really helped them. Although it was introduced as a safety net for debt repayments in times of sickness, accident, or redundancy, it became more of a burden for a great majority of consumers as banks took advantage of the product and devised schemes to sell it even through breaching regulations.

PPI claims have begun to flood into financial institutions for the past several years. Complaints were made to banks that PPI has been totally useless to them and some were lied to when they tried to claim for cover – told that if they use PPI for the repayments of their debt as they were unable to for the meantime, their credit scores will be affected. What a scam!

mis-sold PPI

Then again, as the High Court ruled that those consumers who were wrongly signed up to the policy will have to be properly compensated, you’ll realise that you now have the opportunity to change the situation. It’s now up to you if you want to let yourself go broke by not taking heed of this chance.

Making PPI claims is not as complicated as some people said it was. In fact if you choose to make a claim by hiring an expert or do it yourself, you’ll follow the same process and go through the same turnaround time. Investigations to prove the mis-selling would usually take 6 or 8 weeks, given that the evidence presented is sufficient enough and the situation is less-likely to be complicated.

To start your claim, you will need to establish the existence of the policy alongside any of your finance agreements – be it on a credit card, loan, or mortgage. Check your documents for any reference to PPI and make copies of them, particularly those that indicate the amount paid to the policy and the duration of its existence. You will need to attach them as proof to your claim.

Then, put your claim in writing, stating how the mis-selling happened. In general, there are a lot of situations where mis-selling of PPI can happen.

You will know that it was wrongly sold if it does appear in your account without your knowledge that you in fact agreed to buy it. This happens especially when upon completing an online application for a loan you overlooked a small tick box automatically marked indicating you agree to buy the insurance. Other cases of mis-selling would be being forced to buy PPI like it is compulsory or would increase your chances of getting approved, or getting a higher amount.

Moreover, you were likely mis-sold, too, if the terms and conditions, cover extent, limitations, and exclusions were not entirely discussed. Factors affecting your cover like age limit, employment status, residence status, pre-existing medical conditions and others should have been clearly stated during the sale process. Cooling-off periods should also have been made clear to you.

After presenting your case to the bank, you’ll most likely have to wait for a decision at a prescribed turnaround time. Your bank will let you know once the case is resolved and if you don’t contact them to ask what happened or lodge a complaint to the Financial Ombudsman Service where your claim can stand the chance of being reviewed thoroughly and eventually upheld.

If your claim is proven valid, you will be compensated the full amount you paid to PPI, plus the interest it incurred over time. It isn’t a walk in the park but it shouldn’t be too complicated for you not to even consider it. If in times where you are worried about being broke, you can actually take control of the situation and prevent it from happening by making this claim.