What to expect from the PPI reclaiming process
If you are unsure if you were mis-sold PPI, it’s time to begin the reclaiming process. With the two-year deadline now set in place by the Financial Conduct Authority, everyone will need to begin the PPI reclaiming process by 29th August 2019.
Here’s what to expect if you’re about to go through the PPI reclaiming process.
What is PPI?
PPI, or payment protection insurance, is a form of insurance sold alongside loans, credit cards, hire purchase agreements and mortgages. The purpose of this insurance is to pay your monthly repayments if you are unable to do so. Missed repayments could be due to injury, illness or unemployment.
The mis-selling of PPI was the biggest financial scandal of the decade, and with £10bn still set aside for compensation claims, the time to claim is now.
First steps in the PPI reclaiming process
Do you know if you were mis-sold PPI? The most common products that were sold with an added PPI fee include, to name a few:
- Credit cards
- Personal loans
- Secured loans
- Dealership car finance
- Store cards
- Catalogue credit
If you know that you were mis-sold PPI, we will write a letter to your loan provider.
If you’re unsure if you were mis-sold PPI, we will simply ask for your credit agreement which will detail whether you have PPI or not. This can usually be identified through key phrases such as ‘protection cover’.
There’s no need to panic if you are no longer in possession of these documents as we can obtain the required information from your lender, who are required to keep records for six years, although some keep them even longer.
If you’re really unsure on the loans you’ve taken out, we will ask you for a list of the loan providers and banks you’ve previously used. We may ask a couple of other questions along the way if we require more information from you during the process.
Once we know the loan providers to contact, we will send an initial complaint letter to the bank, who then have 8 weeks to respond with their Final Response letter. A Final Response letter tells you whether you have the right to refer your complaint to the Financial Ombudsman. The letter will also give a time limit for making the complaint, which is usually within six months of receiving the final response letter.
We will claim for all of the PPI premiums you have paid to date, and also write off any remaining PPI premiums you are yet to pay, overall reducing the amount you pay on a monthly basis. We will also seek an 8% statutory interest on any settlement amount, so you are compensated for the loss of funds.
If your claim is rejected
If the bank or loan provider rejects our claim we will take the case to the Financial Ombudsman Service (FOS). In the event of this happening, the process can take up to 18 months.
The FOS overturns approximately half of rejected compensation claims, finding that the majority are legitimate. Unless an Ombudsman rules that there is no claim, we will continue to chase your claim.
We can appeal against rejected claims within six months to the FOS. An adjudicator will revoew your case. If the adjudicator agrees that there are grounds for an appeal, the Ombudsman will make a ruling. The Ombudsman’s decision is final, meaning the ruling cannot be appealed.
Our team at First Target Recoveries specialise in mis-sold PPI policies and claims. We have helped over 65,000 people like you claim back their money since we launched in 2011.
Get in touch via our online form or call us on 0800 023 4953. We can help get your claim off the ground.