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Scotland Wide PPI Specialists

Basic Facts About Claiming PPI Compensation

23 March 2016

There has been a lot written about PPI, some of which is incredibly helpful. For all the great information out there, however, there is also a lot of misinformation.

Being misinformed means many things - it may mean, for example, that you believe you have a claim, only to find that you don't. Or, even worse in some ways, is being led to believe that you don't have a claim - when there are thousands of pounds of PPI compensation with your name on!

Sorting the myths from the facts

It is important to know some basic facts about claiming compensation for mis-sold PPI:

  • The majority of PPI policies were mis-sold

Payment protection insurance (PPI) was a policy that as meant to cover repayments on a debt should you be unable to continue with repayments. This may be because you are too ill to work, have been made redundant and so on.

There were many issues with PPI and in the vast majority of cases, it was an insurance policy that was mis-sold to you.

  • PPI did not last the term of the loan

Even though you thought you were being sensible, there were many shortcomings with the insurance policy you were paying for. Most PPI policies run for a five-year term; if your loan was over 10 years, for example, it would not cover the final five years. But, it had already added a huge amount of interest to your loan.

  • Claiming PPI compensation shouldn't be difficult

In most cases, it is easy to spot that PPI was not the right policy for a customer. When this is the case, the customer informs the bank or lender, they assess the case and in most cases will agree. Thus, you have a cheque or windfall of cash directly in to your bank account.

  • If the bank says no, that isn't the end of the matter

Just because your lender or bank say no to your PPI compensation claim, doesn't mean that you have lost. There is one more place you can go for help - and that is the Financial Ombudsman Service (FOS). This is the body that looks at disputes between customers and financial companies and institutions. They don't just deal with PPI claims but at the moment, they are dealing with a flood of unhappy customers.

  • There may be a deadline looming

There are currently ongoing discussions and debate regarding imposing a PPI compensation deadline. This would be a date by which anyone who wants to seek compensation for mis-sold PPI must do so. This has not been decided yet but the date being widely predicted in the end of summer 2018.

Do you have a claim for PPI compensation? Contact Scottish PPI Claims now.