For a lot of people, the mere mention of PPI puts them on the defensive and is a red flag. Poor practice from a number of claims companies including cold calling and spam emailing, give claims a bad reputation. However look closer, and you’ll see there’s a genuine claim to be made for many people.

PPI (Payment Protection Insurance) is not a bad product. When sold correctly it is a useful insurance that protects you if you’re suddenly unable to repay your loan or credit account – covering you when you might otherwise struggle.

What’s the problem with PPI?

In many situations PPI was mis-sold: whether to those not eligible to claim because of the nature of their debt or job, or in some cases added without informing the buyer – meaning you could have been paying for it without even knowing.

The banks have done wrong – this isn’t speculation, the courts officially recognise this. If you were mis-sold PPI then you can claim back the money you paid, plus interest on it. For some people this might only amount to a small amount but for a lot of Mid-life Adulthood and Mature Adulthood claimants who’ve had PPI on a mortgage or multiple loan or credit accounts, payouts can be well into five figures.

Now is the time to act – the Financial Conduct Authority (FCA) is considering a deadline for PPI claims to be made. If the deadline is brought in, there won’t be long for you to secure a refund.

How do I claim?

Making a claim for PPI is simple. You can claim yourself by writing to your creditor, or you use a claims management company. Going it alone means you won’t pay any fees, and any compensation you are due would be completely yours.

Yet many people choose to use a claims management company due to the benefits they offer – they have the experience and build the strongest possible case for you; then when you win, they make sure you receive a full refund and not a token amount.

Either you or your claims management company write to your creditor, giving details of the PPI and request a refund. The creditor must respond within 8 weeks. If you are rejected by the creditor but believe you still have a case, you can refer it to the Financial Ombudsman Service (FOS). A claims management company know when these situations are worth referring. Unfortunately due to the backlog of claims, once referred it can take upwards of two years for a resolution.

It’s worth noting that if you owe the creditor any money when you make a PPI claim, if it’s successful they are likely to keep the money to pay off your debt. If you’ve used a claims management company, you’ll still need to pay their fees.

If you want to know more about PPI claims, there are claims management companies and organisations  who can help.  See below more links to the help available for reclaiming your PPI.


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