Payment Protection Insurance is a type of coverage that goes along with mortgage, auto loans, and credit cards. The primary purpose of this policy is to provide security coverage for any financial obligations, once an individual has no capacity to pay them and if sold correctly, this coverage can be of great value.
However, the biggest problem is that many people purchase this policy because they are misled. In that case, they can suffer great financial losses. So, if you find yourself in a situation like this, what is your best course of action?
PPI Refund Entitlement
More often than not, banks have a tendency not to adhere to regulations and rules. In such a case, you can be entitled to a payment protection refund. As we already mentioned, the primary purpose of PPI is to provide protection if you find yourself in a situation where you are incapable of fulfilling your financial obligations. However, what you most likely don’t realize is that PPI is structured in such a way that banks and money lenders can find numerous loopholes in it. These loopholes allow them to easily wriggle out of paying claims and put you in debt. On the lighter note, there is a solution to this, and it comes in the form of a PPI reclaim.
It is no secret that millions of policyholders purchase products they don’t need or don’t know they already have. It is also well known that some banks are guilty of misrepresenting their PPI policies and reaping millions in profits. They usually do this by telling the unsuspecting loan seekers that the insurance is mandatory for them to get the loan. There have also been cases where PPI was added to some people’s loans without their knowledge. Thankfully, if you have been misled and sold a bad PPI insurance, you are entitled to a refund.
There are a few methods to reclaim your PPI. In general, they mostly boil down to two options; do it on your own, or hire a reliable PPI claim company.
If you opt for a DIY approach, the first thing you will have to do is write to your bank and ask for a PPI refund. There are high chances that you will get a negative response, so make sure you are prepared for that. The next thing you should do is write another letter, with which you will threaten the bank with the Financial Ombudsman’s Service, or FOS. If that fails as well, make sure to write a third letter, where you will show the support you have from the FOS, as well as your intention to pursue legal action. When doing things on your own, arm yourself with a lot of patience, as it might take you months or even years to receive your PPI refund.
Hire A PPI Claim Company
If you want to avoid all the hassle and waiting, your best option is to hire a PPI claim company. These companies are staffed with professionals, who possess all the skills and expertise necessary to handle PPI claims efficiently.Keep in mind that these companies deal with PPI claims on a daily basis and that they charge their fees only if they succeed in reclaiming PPI insurance.