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How To Make Sure You Receive Your PPI

by Jim ONeil on May 18, 2011

in uk banks

Banks have officially given up their attempts to fight the High Court regarding payment protection insurance (PPI). This means millions of UK customers can begin reclaiming their money. The waiting now begins, as banks must refund an estimated £10 billion.

Consumer advocate groups are seeing to it that people receive their money in an efficient and accurate manner.

In 2005, the Financial Services Authority (FSA) assumed regulation of PPI. Since then, over 1.5 million PPI complaints have been filed. All cases put on hold by banks during the High Court case are now being reopened and addressed. The criticisms regarding PPI pertain to the way it was sold and its cost.

One of the largest issues is that people ineligible to make a claim, due to retirement or self-employment, were sold PPI policies. They purchased PPI alongside credit cards, mortgages, and personal loans. Other individuals were not informed of policy exclusions such as lack of coverage for pre-existing illnesses.

Some unknowing customers were informed that PPI was mandatory or were issued it without their knowledge.

Banks are now notifying affected customers via letter regarding how to file a claim. However, there may be others who have valid claims, so if you believe you are affected, do not wait for the bank to contact you. Some banks have stated that their initial contact will be only with customers who have already filed complaints.

To identify whether you have PPI, review the paperwork regarding any loan, credit card, or store card you took out in the past six years. If this does not yield the answer, contact the provider and ask if you have PPI. If you believe it may have been missold, find out about the type of policy, when it was sold, and determine why you think it was missold.

Use the PPI questionnaire on the Financial Ombudsman Service Web site for assistance.

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