So what is PPI exactly?

So what is PPI exactly?

What are PPI policies?  Standing for Payment Protection Insurance, they were sold alongside many personal loans and credit cards in the 1990s and 200os to cover the repayments on these products if you lost your job or had to stop working because of ill health.

But in one of Britain’s biggest mis-selling scandals, the policies were often sold to people who did not need them, did not want them, did not know they were optional, or did not even know they were buying them.  For example, you did not need to insure your earnings if you did not have a job to lose.

Almost as bad is the current pressure being exerted claims management companies to act on behalf of possible mis-sold policy holders. They are being accused of preying on the vulnerable and making millions of nuisance calls a week touting for business.

According to Government figures £3.5bn was made since 2011 by management companies in charges for handling mis-selling claims.  This is big business which is often unnecessarily paid out by claimants.

You do not need to pay a claims management company to help you get back money spent on mis-sold PPI.

You can do it yourself by following this five step guide.

  1. Check your eligibility  – find any letters and statement for the account on which you were sold PPI and check for payments made for the insurance.  If you are unsure if you had it most big lenders can tell you over the phone.
  2. Make your complaint – write to the mortgage, loan or credit card provider that sold you the policy explaining why you think it was mis-sold. Qualifying reasons include that you were not told it was optional and that exclusions were not explained.  Many banks have on-line questionnaires for this purpose or Citizens Advice and the consumer group Which? Offer templates to help you make a claim.
  3. Include the evidence – make copies of any documents relating to the accounts on which you were sold PPI. Include these with your letter and keep the originals.
  4. Wait for a response – give the lender eight weeks to respond. If it fails to do so take you complaint to the Financial Ombudsman Service.
  5. Act now – The Financial Conduct Authority might prevent customers from claiming mis-sold PPI from 2018. The aim is’ to bring the issue to an orderly conclusion’.

Have you made a claim?  Have you been pressured by nuisance calls? Do let us know your experiences.