Financial Conduct Authority (FCA) in the UK is obliged to look after the biggest outrage in the history of the financial system of UK called ‘PPI Claim’. After 1998, there were a number of complaints against the financial institutes which had mis-sold the PPI policy to their customers either with any loan, credit card or mortgage. In the year 2012, these complaints surged so high in numbers that PPI claim became the ‘most complained about’ product in the history of UK.
When people started to claim about the PPI,
- Either their claims got rejected or,
- They couldn’t get compensation because around 75% of the PPI premium was not obliged to be compensated
These two conditions were the result of filthy claim process and expensive terms and conditions of the PPI policy.
Grounds of a Mis-sold PPI Policy
FCA has provided some grounds, stated below, that will help people understand if they have a mis-sold PPI policy.
- Payment protection insurance was sold with the loan, mortgage, and credit cards. In these cases, one should check the past paperwork to see if the cost of PPI was included. To misguide the consumer, financial institutions had renamed the PPI to ‘protection for aloan, insurance for credit or loan repayment, accident, sickness and unemployment (ASU) insurance, cover for payment or account’ in the paperwork.
- If the paperwork doesn’t provide any surety, then ask your lender if they have sold you the policy without any notice.
- If there is a positive answer to the questions listed below, then there may be the case that you have a mis-sold PPI policy.
- Were you pressurized to buy payment protection insurance?
- Did they say that PPI policy is a must for you?
- Was there a promise about an economical rate or good possibility of approval of a loan or credit card with a PPI policy?
- Did they not tell you about the termination of PPI cover earlier than the mortgage or credit was repaid?
- Were you suffering from a medical condition when you bought the loan or credit card?
In the case of a positive reply, the consumer can follow the option one or two to check if there is a mis-sold PPI.
Directives by FCA for Making PPI Claim
Once you are sure that you have a mis-sold PPI without your knowledge or due to lack of communication between you and the lender, you can file a PPI claim by following the steps given below:
- Make the claim by yourself and don’t seek help from any claim management company: Making PPI claim is free of cost and the only required steps are filling the official form and sending it to the complaint address of the institution that has mis-sold you the policy. Claim management companies should be avoided as they will cost you for a free and easy process.
- Wait for the response from your company: Financial institutions have a time of eight weeks to give the final response regarding your PPI claim. This response will tell you either the claim is successful or not.
- Contact Financial Ombudsman Service (FOS): In case you don’t get any reply within eight weeks or you are not happy with the result, you must contact FOS within the next 6 months. They will review the decision of the company and choose whether to defend your complaint or not.
During the start of this outrage, people were not sure if they should file a complaint or not because there were many misconceptions like false reports, poor management, and pricey procedure. These guidelines by FCA are aimed at guiding the people about a cost-free and completely managed PPI claim.
Author Box:
Robert Wolf lets you become aware of the possibilities which hint towards a missold payment protection insurance. To have a successful claim of your PPI, following the correct procedure proves vital for you.
