What are PPI claims?
Payment protection insurance (PPI) is an insurance product that protects the lending party of a loan from not being repaid if the borrowers are unable to pay their share. Although the primary beneficiary is actually the lender the payments for this insurance are made by the borrowers.
It often happens that customers are mis-sold a PPI or were not even aware that it existed in which case they can make PPI claims to get that money back based on being mis-sold the policy. Claiming back PPI can be a challenging and difficult process, so it is important that you understand the details before you start a process to reclaim PPI.
Who is eligible to make claims?
In order to be eligible to make a PPI claim, you must have bought the policy without knowing. This is particularly true in the case of people who were students, retirees or unemployed at the time of signing on to the loan.
The best way to find out if PPI payments were made is to check your credit card and loan statements and look for a PPI charge. It might also be found under another heading. It is a good practice to investigate any unusual charges on the statements. If it refers to a PPI payment, then you have been paying charges unfairly and you can use this information to claim back PPI.
If you cannot find the statements or the paperwork you need, contact your bank or your loan provider. It is highly likely that they will have the statements, which you can use to check if you’ve paid erroneous PPI charges in the past.
How to make PPI claims?
Make sure that you collect and supply copies of all the documentation you can find on any of the loans or credit cards you had in the past. Send this information to the bank requesting to claim back PPI. This will increase the chances of filing a successful claim. It will also be much easier to claim a policy that is six year or less, because the records will still be available, however, you can always file claims for earlier for charges that are older than six years.
If the bank rejects your claim, do not give up. You can always take this claim a step and consult with higher authorities. Keep in mind that the process takes time.