You can claim PPI refunds if the attending bank employee, insurance agent, or financial adviser told you a specific brand of policy is compulsory for the financing. However, you cannot make a mis-sold PPI claim if you consciously made a mistake purchasing the policy.
For example, if you purchased an insurance policy without realizing that it would cancel the PPI you already owned, then you cannot make a claim on both insurance policies unless you are eligible or fulfilled its requirements.
If you purchased two PPI policies and you are eligible for both, clarify with your provider if you can receive the benefits despite the existence of another policy. Some companies allow for the shared claim liability between two policies if you purchased them from the same company.
However, cancelling and receiving any possible refunds are the only course of action should the company not recognise the second insurance policy or provide its benefits.
If you are ineligible for the first policy but are eligible for the second, then by all means you are owed refunds and compensation for the mis-sold policy, as per the PPI claims process.
It is important to make a PPI claim as soon as you possibly can because by August 29, 2018, the FCA will impose its PPI deadline. Any claims made after this date will not be honoured by any bank in the United Kingdom.
The Financial Conduct Authority has made August 29, 2019 the final date to claim for mis-sold PPI. The insurance policy made headlines after millions purchased the insurance under the impression it was a financing requirement. If you wish to make a claim soon, take note of the commonly accepted arguments that consider your insurance as mis-sold.
A Specific Brand Was Forwarded
Lenders can require borrowers to have payment protection before approving their financing. However, lenders cannot require the purchase of a specific insurance brand.
Every borrower lives in different circumstances. Therefore, no single insurance policy can render them eligible. As a result, millions of consumers mislead by their lenders purchased PPI.
It Boosted One’s Credit Score
Credit scores rise and fall depending on your payment attitude. If you pay on time and in full, then you have excellent credit scores. Therefore, having an insurance policy does not increase your score to qualify you for higher-value financing. If the argument of increased credit scores through PPI purchases was set before you, then if you purchased the insurance, you can make a claim.
‘High-End Deals Require Protection’
If lenders told you PPI is required to have higher financing, then it is a legitimate claim. Meanwhile, if they asked you to purchase a top-rank PPI policy that you have no use for, then you can make a claim for it. No specific PPI policy can be forwarded as a requirement.
Yes. Your financial institution can require a payment protection insurance before your loan application is approved.
However, they cannot make a specific PPI brand the only policy that can grant application approval.
Consumers have a right to choose the insurance policy that will fulfill the lender’s PPI requirement because no single PPI will fit the unique circumstances of a borrower’s life.
Therefore, if you were urged to purchase a specific PPI policy during the time, then you have the right to earn refunds and compensation. However, if your bank required that you get a third-party PPI policy and the latter’s conditions make you an eligible beneficiary, then you do not have a mis-sold PPI.
However, make sure to read the fine print properly. Even with third-party providers, mis-selling can happen especially if consumers fail to read the policy’s conditions. Unfortunately, consumers cannot make a claim in this case because the provider had presented the terms and conditions.
Most bank employees in the years of PPI mis-selling confused customers by presenting the legitimate borrower’s requirement and forwarding a specific-brand policy that acts as a “quick solution” to the consumer’s current dilemma, which urges the latter to make the purchase immediately. This led to the huge number of mis-sold PPI policies in the last decades.
During the last three months of 2017, the Financial Ombudsman Service tallied a total of 147,775 PPI complaints. It was 50% lower than 2012’s peak complaint number, but it was a sign that activity will pick up early 2018 with the Financial Conduct Authority’s PPI claims deadline in full implementation.
The FCA had helped raise awareness regarding mis-sold insurance policies through a commercial featuring the animatronic model and voice of Arnold Schwarzenegger urging people to take action.
Meanwhile, the FOS prepares by increasing its workforce and optimizing its procedures to ensure the hundreds of thousands of complaints from last-minute consumer receive address promptly without “bottle-necking” the entire pipeline.
The FCA has also ensured banks will optimize their processes to avoid slowdowns. Until the deadline, banks who do not practice efficient complaint procedures will receive immense penalties from the watchdog.
According to FOS Chief Caroline Wayman, the Ombudsman’s workforce must deal with 3,000-5,000 complaints by 2019. It anticipates the immense number of last-minute claimants during the deadline year.
So far, the PPI scandal has accumulated £40 billion in mis-sold policies with over half the value refunded to consumers. Post-deadline, consumers might find it more difficult to make a PPI complaint against banks and financial institutions.