Last Updated on Feb 25, 2020 by James W
You might have seen a fair few adverts on your TV advertising the service of ‘PPI claims’ companies, but they’ll only forge an initial point of contact. To recognize exactly what you’re getting from their support, you must delve further into their offering and the problem at hand.
As the adverts will tell you, if you’re one of the hundreds of thousands to have been mis-sold payment protection insurance (PPI), then it’s up to the claims companies to win back what’s rightfully your’s. PPI is of most use to consumers looking to cover loan or debt repayments should they become unable to repay the amount in full. The policy will most commonly act as a protective measure after the holder becomes ill or is made redundant.
A pretty important plan for those with an an eye on the future, no? Well not everyone deems PPI a necessary product. Young adults with no history of a serious medical condition or outstanding debt wouldn’t see much value in the plan. Those with life insurance can benefit from the same service without an investment in PPI, so it’s unlikely that they too would opt into receiving cover. However, so many of these groups end up with the policy attached to their loan or bank account, which is where claim companies enter the frame.
Your role
If you suspect that you’ve been mis-sold the policy, look at the paperwork sent to you when you first took out your loan. The form likely to reveal all will be your ‘credit agreement’, in which a list of products and your signature will be contained. Now, scan for Payment Protection Insurance and other aliases you can find online, including Loan Protection Cover, Card Protection Cover and Unemployment Cover. If one of the terms is listed, you could be entitled to a full refund.
PPI claims companies
A PPI claim company will act on the customer’s behalf to obtain any compensation owed by the provider. Every company with a decent rate of success will usually have their staff to thank, as they’ll be trained in the area of payment protection. Their job is to use ethical methods of practice to successfully argue your case and ensure maximum return.
The first step is often to establish whether or not you have a valid claim, which will be an extended version of the check you performed, possibly involving the underwriter of your plan. A formal letter of complaint is then sent on your behalf listing any substantial flaws in the sale, the progress of which is tracked and discussed with you on a regular basis.
You could then be one of thousands pursuing a successful claim, starting with a request for the lender to return your money. Their sole objective is to provide a high level of customer satisfaction and to ensure that the amount owed is paid out in full. In some instances a claim can be wrapped up in the space of a month, with any compensation delivered promptly to the victim.
Of course, you may not have same high chance of success by deciding to pursue a claim by yourself. This why companies understandably charge a fee, which is taken out of the amount you get back. Don’t worry, this will all explained to you beforehand and the most reputable will make sure you don’t end up with another unwanted product on your hands.
About the Author:
Camilla Anderson is freelance consultant of finance, insurance, investment etc. For more information about PPI scandal, please visit: www.robinhoodrefunds.com
