PPI compensation claims seem to have been in the news constantly recently. Banks have already paid out over £9billion in compensation and are continuing to set aside money to finance further successful claims.
However, for many, the process of making PPI compensation claims is still a confusing one. The following are some basic points which will help you decide whether you can lodge a claim against mis-sold PPI and, if so, how to go about it.
Has it been mis-sold?
Some PPI has not been mis-sold. However, some common ways in which it has been mis-sold are:
1. You were not clearly made aware that the insurance was optional at the time of purchase.
2. You were not clearly made aware of the exclusions which applied to the insurance. For example, if at the time of purchase you suffered from an illness that would make you ineligible to claim on it.
3. You were encouraged to buy insurance from an adviser who used phrases such as “we strongly advise you to purchase this option“. Legally, they are not allowed to do this unless they have fully appraised your circumstances and made a recommendation based on genuine analysis that this is right for you. If they didn’t, you may be able to claim.
How do you make PPI compensation claims?
There are a plethora of companies offering to handle your PPI compensation claim for you and, in some circumstances, it is worth speaking to them to get advice. However, you can also submit your complaint personally and the Financial Ombudsman Service (FOS) will provide advice on what to do. The recipient must then decide whether to uphold your complaint within eight weeks, although it may take considerably longer to be resolved. If the lender does not accept your complaint, then you can revert to the FOS for a decision and, to date, they have resolved approximately two thirds of cases in favour of the consumer.