Payment Protection Insurance Policy can be a helpful financial product for many people. Other times, it can be mis-sold. In such cases, what you can do is file for a compensation claim. This allows you to get back everything that you have paid in premiums as well as other fees and interest. So how do you know if your claim is legitimate or not? First, you must check the reasons why you think your PPI policy is mis-sold.
Misunderstanding or Wrong Information
A Payment Protection Insurance policy may be considered mis-sold if the details concerning it have not been properly explained. This remains true whether or not said insufficient or erratic explanation was intentional or not. For example, a borrower must be informed that a PPI policy will be paid monthly alongside the dues of the credit card bills, the loan or the mortgage. He or she must also be informed how much the monthly payment will be. In case of credit card applications, the computation for the monthly PPI policy fee must be discussed to the client.
Manipulation or Pressuring
Another way a Payment Protection Insurance policy may be considered mis-sold is when the borrower buys a policy due to manipulation, pressuring or other similar sales tactics. For example, a borrower must not be told that purchasing a PPI policy is mandatory. Also, the borrower has the right to buy from a different company aside from the one where he or she is applying the loan, mortgage or credit card for. The borrower must also not be told that the PPI policy will increase the chances of approval or speed up the application process of his or her loan, credit card or mortgage.
Ask the Experts
There are many more reasons and situations where a Payment Protection Insurance policy may be considered mis-sold. If you are unsure about this and if you are not well-versed on how to start a claim, you might want to seek professional help. While you can turn to the Financial Ombudsman for assistance, perhaps a faster and better idea would be to use a claims management company. For a certain fee, not only can they help you take the proper steps with regards to your compensation claim, they may also help you speed up the process of your compensation. On average, a claim may be concluded in a matter of a few months but there have been cases wherein a compensation claim was completed in just a few weeks.