The scandal over missold Payment Protection Insurance (PPI) continues to rumble on in the UK, and for consumers who think they have been a victim of misselling, it is important to make a claim. One of the key things to remember is that not all people who bought PPI are actually entitled to make a claim, and it is first vital to ensure that any application has substance.
A number of financial institutions have revealed that they are to make putting in a claim application far easier than before. Last year, £1.9bn was paid out to customers who complained about missold Payment Protection Insurance (PPI). With banks still having to pay out vast sums of money to thousands of consumers, there is still a lot of compensation to be made to individuals, meaning that filing a claim is important.
One of the reasons that banks have decided to make the process of filing a claim easier is because of a small number of unscrupulous claims companies that are trying to take as much of consumers compensation as possible. Banks said that they had worked with some claims firms that were both professional and legitimate, but called upon justice secretary, Kenneth Clarke, to clamp down on bad claims businesses.
Whilst new measures to make claiming easier are discussed by the financial industry, many people may still turn to claims firms to help them gain their compensation entitlements. Choosing the correct firm is important to ensure that a swift, seamless, and profitable process can be achieved. In cases where individuals were sold insurance without their knowledge, where cover was found to be invalid because of age or employment status, or where people were told that protection was vital to ensure credit agreements were approved, there is a real case for making a claim.
There are number of areas to consider for those who think they may have been missold PPI. When taking out a credit agreement such as a mortgage or credit card, was PPI said to be mandatory or was it implied that taking out such insurance would help applications be successful? Was PPI bought, only for consumers to discover that it was invalid for them because they were self-employed or of retirement age? Did consumers discover that they had been sold PPI without even knowing it? If the answer to any of these questions is yes, then there is a real reason for making a compensation claim.
One of the first steps to take should be to contact the lender directly in writing, or seek help from professional PPI reclaim experts. If lenders do not respond, or consumers are dissatisfied with results after eight weeks, the Financial Ombudsman Service (FOS) can then be contacted.
Currently, the average payout is £3,000 and three out of four applications are successful. This means that, should a missold PPI case have real backing, a claim should be made so that the rightful compensation entitlement can be received.