The Financial Ombudsman Service may have moved the PPI deadline further back from the spring of 2018 to June 2019 but it does not mean things have gone a lot easier.
This is the primary complaint of Which? and other consumer groups: the lack of simplification for payment protection insurance processes.
Consumers only have to do three things to succeed effectively with PPI claims.
Understand How You Were Mis-Sold
Employees cannot force retirees and self-employed to purchase PPI to get a loan application. This is an unfair and unscrupulous tactic to sell financial products. If you were forced — or told — that PPI is a product necessary to go along with any loan, mortgage or credit card, it is not. If you weren’t told you could consult for a PPI with your own insurance company, you were mis-sold PPI.
PPI Isn’t Defective
PPI is a truly effective product. It protects your loan repayments for one year after it is activated. It has not failed and all insurers and banks honour it upon request and fulfilment of requirements.
Because of its mis-selling, PPI has become a notorious product not because it was failing to do its job but because it could not do its job given the consumer’s eligibility is questionable due to the controversial manner it was sold.
All the Papers
It would take all your paperwork to prove that you were mis-sold PPI. Understand your rights as a consumer when claiming for your insurance. You are eligible for refunds if you could prove that you have a PPI and it was mis-sold because you were sick, already retired or self-employed during the time of purchase.
Make sure to prove that your bank employee understood your occupation before selling you the insurance policy.