How do I claim back PPI?
The mis-selling of payment protection insurance (PPI) has grown into the biggest single financial scandal ever seen in the UK with more than £29.2bn already paid back to successful claimants and millions more claims still to be made.
How easy is it to claim back PPI?
To claim back payment protection insurance which you believe has been mis-sold to you requires a formal complaint being made to the firm which made the sale. The complaint must include a valid reason why you think the product sold to you did not meet your specific needs.
Financial firms selling products in the UK must do so ensuring their customers are treated fairly and care is taken to ensure the product sold is suited to their needs. Unfortunately sales of PPI didn’t always follow the rules and policies ended up being mis-sold for a variety of reasons.
What do I need to make a PPI claim?
To make a successful claim, evidence must be provided to prove that your PPI was mis-sold.
Representatives of the financial services industry and the Financial Ombudsman Service have created a special questionnaire which covers all the bases.
Points covered include:
- how and where it was taken out
- what advice was given to persuade you to take the cover
- whether or not you have made a claim on the policy
- The reason you take out the finance
- Whether or not it was used to consolidate other debts
- Your personal circumstances at the time (job and who you were working for)
- Any change in circumstances
- What sick pay you received
- If you had any other way of making your repayments
- If you had any health problems at the point of sale
It also asks why you think the policy was mis-sold and why you are now unhappy with the cover provided.
What is the success rate for claims?
Each claim is judged on its merits by the firm involved and the success or otherwise will depend on the strength of the case. However, Gladstone Brookes has an overall success rate of 91%‡ of those cases where PPI was attached to the finance.
Claims are sometimes rejected by the firms, but it’s part of the Gladstone Brookes service to examine the rejection and advise whether or not an appeal to the Financial Ombudsman Service (FOS) has any chance of success.
An initial rejection is definitely not the end of the story where a claim is concerned. Figures released by FOS earlier this year have revealed that an average 75% of claims were unfairly rejected and were overturned in favour of the consumer. So even if the bank initially says they are not prepared to pay any compensation a FOS investigation forces them to change their mind and to pay redress to the consumer.