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Reclaiming PPI: Is it Really as Complicated as it Sounds?

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A compensation claim can seem like a daunting process. From the initial application right up to the final verdict, claimants must be careful not to make any mistakes that could jeopardise the claim.

But with a little help, reclaiming PPI (Payment Protection Insurance) needn’t be as complicated as it sounds.

Logican suggests some of the UK’s best PPI claims companies that can help you navigate the tasks with a transparent and efficient claims management process. Not only does this create a sufficient and smooth system for the company, but claimants can relax when they’re better informed of the PPI process.

This article is going to help you understand exactly what PPI is, why you need to reclaim it, and ultimately what the claims process entails.

What exactly is PPI?

PPI is a financial insurance product designed to cover mortgages, credit cards, loans and other debt repayments in case a policy-holder was deemed “unfit”  to keep up the payments due to illness, redundancy, or an accident.

PPI is also known by other terms, including: ASU (Accident, Sickness & Unemployment), Loan Protection, Account Cover, Credit Insurance and Loan Repayment Insurance. It’s important to look out for these “other names” on your financial documents (crucial for PPI identification purposes during a claim) as they may go unnoticed to the untrained eye.

Why Do You Need to Reclaim PPI?

Technically, PPI itself was not an illegal policy, but it was the mis-selling of PPI that resulted in a nationwide “PPI scandal”. The campaign that followed saw a number of claims companies urging victims of mis-sold PPI to seek compensation. You could make a claim if you experienced any of the following when taking out a debt repayment policy:

  • Your medical condition was not taken into account
  • Your employment status was ignored
  • You were told PPI was compulsory
  • PPI was included in the product without your consent

Plevin is Your Friend

The judgement on the Plevin v Paragon Personal Finance case opened up a new category for people to claim for PPI compensation. Therefore, you may still be entitled to compensation even if you were not mis-sold PPI through the above means.

Essentially, the Plevin rule means that if, unexplained to you, over 50% of the cost of your PPI went as commission to the lender, you may be compensated for the extra above that figure. However, your PPI is required to have been active at some point since 2008.

PPI in Numbers

  • A staggering 64 million PPI policies were sold in the UK
  • Most PPI policies were taken out between 1990 and 2010 — some as far back as the 70s.
  • Over £34 billion in compensation has been paid out so far.
  • It was reported that lenders would have to write about Plevin to 1.2 million people who had previous claims rejected.  
  • A typical payout is approximately £3, 000.

Here are the simple steps you need to take to reclaim PPI:

1) Get Your Paperwork Sorted

Search the original documents of financial products and look for those “disguised PPI  terms” such as:

  • Accident, sickness and unemployment (ASU) insurance
  • Account cover
  • Credit insurance
  • Credit protection
  • Loan care
  • Loan insurance
  • Loan protection
  • Loan repayment insurance
  • Mortgage payment protection insurance (MPPI)
  • Payment cover
  • Protection plan

2) Contact the Relevant Firm

Even if you don’t have the right paperwork to hand, you can still make a claim by contacting any of the following:

  • Contact the bank or lender: It’s possible that the bank or lender with whom you took out a product will have the necessary documents to help determine if you had PPI.
  • Consult a claims company: An experienced claims company can do the heavy lifting for you and swiftly investigate if you were a victim of mis-sold PPI.

What Happens Next?

If your claim is rejected you can go to the free Financial Ombudsman to seek further advice. The service was set up by Parliament to sort out complaints between financial organisations and their customers

You Have a Deadline

As the pressure from banks increased, the need to draw a line under the PPI scandal became apparent. The Financial Conduct Authority (FCA) declared that no more new PPI claims can be made after 29th August 2019.  Avoid the deadline day rush and get your claim in as soon as possible!

And that’s the basics of reclaiming PPI. Not as complicated as it sounds, and with an array of claims companies available, not to mention the benefits of the Plevin rule, making a PPI claim can be a simple task.

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