13 April 2015
The mis-selling of payment protection insurance (PPI) has left many customers with many questions, some of which remain unanswered. But, the questions are essential, with the answers invaluable as to why this situation arose and what can be done about it…
With so much written and talked about when it comes to PPI compensation, many people are under the impression that if they have the policy, they are eligible to compensation.
However, the policy itself, to a certain extent, was not at fault but rather the way it was sold to customers thus, assuming you have an automatic right to compensation is a false assumption. As the consumer you need to prove you were mis-sold the PPI policy and, with help from specialists such as PPI Scotland, you will have all the reasons at your fingertips.
If you think you have a case for compensation, there are 3 options:
When you have submitted a claim to your bank or lender, they have 5 days to acknowledge receipt, ten a further 8 weeks to respond as to whether they agree you have been mis-sold the PPI policy or to reject your claim.
You can ask the Financial Ombudsman Service to look at your case. They are the body that deals with disputes between customers and banks. They have a huge PPI workload at present and, even though the rate of cases being referred to them is slowing down, the cases are becoming more complex and difficult to deal with. You will need to be prepared to wait for several months as they work through their caseloads.
It is thought that the sale of PPI policies will shrink dramatically in the wake of the mis-selling scandal. There are a new set of selling guidelines which banks and lenders must follow, not just in the sale of PPI but in the sale of all additional policies and products alongside loans and such like.