Payment protection insurance, otherwise known as PPI, is coverage for loans or financing payments that you are unable to make for a certain reason. Generally, this type of coverage is relevant during periods of illness or some type of forced unemployment.
The specifics of a payment protection policy will vary like any other kind of insurance plan, and the benefits provided from one policy to the next may be quite different. You may be offered this type of protection from your lender at the onset of a new loan, line of credit, or mortgage as a type of package deal, but you can also purchase payment protection insurance (PPI) on your own as an individual policy.
Complaints against Payment Protection Insurance
Unfortunately, many people in the UK have been subjected to poor business practices surrounding a payment protection policy, and the belief that an insurance policy was mis-sold to them is a very common complaint. This type of complaint may either involve being unaware you have taken out a policy you didn’t want or purchasing an unfit policy that wasn’t adequately described to you.
In such cases, you may be able to make a claim and obtain a refund for premiums and interest that were collected against your policy, a sum that can equate to thousands of dollars for some individuals.
The primary problem with PPI policies that have been mis-sold is that the public is usually unaware they have been affected by the problem and don’t know how to determine their own ability to make a complaint. For people in this position, there are businesses that offer claims management services that can uncover payment protection policies and assist you with making a claim, if appropriate.
Making a PPI Claim
In most cases, the window for making a PPI claim is limited to within six years of the date you purchased the policy. With the proper documentation, it is conceivable that you would be able to make a claim outside of this window. For those who were unaware of their policy or no longer have original documentation in their possession, a claims management company is generally able to work as your representative to obtain these documents from your lender.
The compensation you may be able to receive as a result of your claim depends on your particular case. In the event of a successful claim, it is possible to receive a refund for anything you have paid against the policy plus interest, and future loan payments would likely be reduced as well with the subtraction of your PPI premiums.
Additionally, if you have already repaid your loan, you may be entitled to cash compensation in the amount of your PPI claim.
Getting a Refund
The amount of time it takes to settle a payment protection insurance claim and obtain a refund varies from one case to the next, and a lot of the difference depends on the lender involved. The nature of your case will have some impact as well. It is not uncommon for simple claims to be resolved in a matter of weeks, while more complex cases can take much longer to become finalized.
A claims management company can assist you with making a payment protection insurance claim as well as ultimately receiving a refund for premiums you have paid. In many cases, having a representative who is trained in these types of claims is the easiest way to uncover unidentified policies and receive the maximum refund possible. Further, it is possible to get assistance from a claims representative with no cost upfront and no fees unless your claim is successful.