After the high court ruling, many people are now claiming back their money from Payment Protection Insurance plan, which was mis sold to them by their lenders, while people obtained the loan or mortgage or purchased any credit card. The purpose of PPI plan is to provide the borrower a protection to pay their dues in case they lose their job or fall sick and fail to make payment of their dues. Insurance company will then be liable to make the payment on behalf of the borrower for a period of at least 12 months.
What is Mis-sold PPI plan?
PPI has become famous, as most of this plan has been mis-sold to borrowers. Most of the borrowers did not know that they are paying premium for PPI plan along with their loan payment dues, which was added by their lenders without taking their approval. Most of this insurance plan was very costly plan and in majority of cases, the borrowers never required to buy them.
In many cases, the borrower of insurance plan was not even eligible to buy such plans. They were in fact not eligible to make any claim from the insurance company.
In some of the cases, lenders have misled their consumers by telling them that their loan cannot be approved if they do not compulsorily buy this PPI Plan.
How much you can get after making your claim.
It is important for you to know how much compensation you are eligible for, if you claim your mis sold PPI. This depends on how you have been asked to pay the premium for this plan. Some people must have paid in the form of single premium, which was added to your cost of loan without your knowledge.
However, majority of people have been paying premium on monthly basis. If you are paying premium on monthly basis then your loan statement will reflect this amount. You can then collect all your statement and calculate the amount that you have paid so far.
If you have paid the premium in a single payment then it is little tricky to find out your dues. That is because your premium will remain hidden in the cost of your loan. You may therefore consult any insurance expert to calculate your exact premium and after that, you can calculate the interest component for your single premium paid by you.
You also need to understand the terms and conditions written in your original agreement and compare that with all your other papers, so that you can arrive at the exact figure that is due to you.
Make your claim for PPI plan
When you are convinced that your lender has mis sold the PPI plan, which you never asked for then you must reclaim your money back. You have to make sure that your PPI policy is still active and is not more than 6 years old since most of the lenders destroy the original documents after 6 years.
You should then contact the person, who was responsible for selling you this PPI plan. Never contact the insurance company, as they were never in the picture in the whole deal.
In case, your claim is refused then you can contact financial ombudsman or any claims management company to settle your claim. You could also visit us on our website if you are looking to claim your PPI without risking any investment from your side.
James Patrick works as a financial consultant in one of the top claims recovery company in the UK. You could visit us on our website if you have any doubts that you are paying PPI premiums in addition to your regular mortgage or credit card payments. Our claims recovery experts will gladly clarify it for you.