How To Claim Back PPI
What is PPI?
This is a kind of insurance that a debtor has to procure to provide security of debt payment. The supposedly benefit of this insurance is that a borrower will still be able to liquidate his debt should there be uncertain eventualities in his life. When he dies, is disabled or loses his job, the creditor will be paid by the insurance company. The amount of insurance covers the whole amount of loan. How far back can you claim PPI is worth looking into as claims companies vary from 6 years with some suggesting up to 15 years.
Why there is a need for PPI refund
In the year 2011, there came the revelations that many banks in the UK collected the insurance on mis-sold PPIs. Bankss were mandated to make a refund to the borrower since the PPI was classified as mis-sold. This happens because the borrowers were deceived and were made to believe that the PPI is a necessity. Some lenders purposely did not inform the borrower but instead added the cost of insurance to the loan payments. You can make a claim, below is how to claim back bank charges.
How to claim the refund
- If you were asked to make PPI payment in the past, you should contact the insurer or the bank.
- You have to prepare all the documents such as receipt of payment of the insurance and receipts of loan payments. If possible, attach the documents for the loan release. This will indicate the amount of original loan that you had obtained and the amount of payments you made on the monthly basis.
- These might not be enough, so you better get from the bank or insurance company a checklist of the requirements for refund or claim.
- After collecting all the documents, file your claim.
- It is advisable that you hire a claims management company because the company can handle the legalities in a better way.
- If you have filed for a claim on your own, do the follow-up for the release. If you filed it through an agent, follow-up your claims with the management company.
Duration of the claim
You may receive the payment of claim in approximately a month’s time if claimed through a management company. If you file for the claim on your own, then you should expect a longer time of payment and you might also receive a lesser amount than what you should actually get. But then, you have to pay commission to your claim agent once you receive your refund through their intervention.
It is better to take the help of a claims management company if you want to claim back your PPI amount successfully. This is because the right company can guide you in a better way and help you throughout the process of filing your claim.