Do You Have A Case Of Mis Sold PPI ?
The creation of payment protection insurance (PPI) was intended to as an insurance for all types of loans, finance, mortages, anything where money was borrowed. The idea was simple, it was to protect you in case you were unable to keep up the payments of the loan. A problem became apparent when due to a global recession, people were loosing their jobs and making claims on the insurance for their loans, the reason it was created. When hundreds of thousands of these policies started being rejected, it became apparent that these policies were being mis sold. The incorrect policy to the product, policies that did not cover the term of the loan and even policies that did not cover loss of income
There has since been a ruling, however, which is now accepted throughout the insurance industry, that states that banks are now required to go through their records to find any mis sold PPI policies. Once these are found, banks are required to let policyholders know that they might possibly be able to get their paid premiums back. This is the essence of PPI claims.
As stated above, it is now the responsibility of the banks to start identifying which of their customers were mis sold PPI. The rules of the Financial Services Authority, or FSA, state that banks by law have to contact customers when they observe a systemic mishandling of how policies were sold. For example, if the literature for marketing that was sold in concert with policies was not in compliance with the guidelines of the FSA, customers must be informed. Banks will have to send these customers letters that explain in detail how their premiums may be refunded.
As a consumer, if you receive a letter from your local bank, this indicates that the bank involved with your PPI policy was able to find a mishandling with the sale of your policy. If you receive such a letter, you should follow any instructions included in the letter from your bank so you will be able to pursue a claim. Although there is no guarantee that there was a mis-sale of the policy, the chances are very high that this is what occurred, and as a result, you will be due compensation. On the other hand, if you do not receive a letter, this by itself does not mean that you will not be able to file a claim for PPI that was mis sold. Rather, it simply means that if a PPI missale occurred, it did not occur due to a systemic failure by your bank.
In fact, it is still possible that there was a missale of your policy due to either an error of commission or an error of omission by someone in the staff responsible for the sale of your policy. If you have already filed a claim to your bank or company, then you should wait for a few weeks to obtain the results of the claim. If your claim is accepted, then you will receive some or all of your premiums back. However, if you receive a rejection of your claim, then you will still have the option of contacting the FOS, or Financial Ombudsman Service.
It is possible that your bank may have rejected a claim in the past but will be forced to revisit it now due to the ruling from the High Court.
About the Author
Information used in this article can be found from the Finacial Services Authority and companies that deal in Claims must be regulated by the Ministry of Justicehttp://www.missoldppi.com
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