Understanding PPI Refunds and How It Works

In the United Kingdom, Payment protection insurance (PPI) is a type of insurance that covers outstanding debts. People make use of this insurance when they secure loans such as mortgages, credit cards, or car loans. Borrowers file a PPI claim when they can no longer pay the loan in the event of an accident, illness, job retrenchment, or death. Many are not aware that they can file for PPI refunds. Because of this oversight, they miss out on getting a refund worth thousands of pounds.

People can get a PPI from various sources. There are lending companies that offer the insurance along with the loan. For example, banks offer the borrower a PPI along with a home mortgage. They consider the PPI as an add-on product. Borrowers can choose to get the PPI from the insurance company itself. Mis sold PPI claims are the result of an agent’s persistence in its purchase even if it is not necessary.

Why should people file for PPI refunds?

One of the many reasons people file a PPI is for financial protection. This type of insurance covers your expenses in case you no longer have the capacity to pay your debts. It provides you with enough money until you can financially recover or until you find yourself a new job.

How do I secure my refunds?

You can start securing your PPI refund by writing a letter to your insurance company or bank. Start by stating why you think your insurance was mis-sold. Make sure you enumerate all valid claims to support your case. Include a clear breakdown of your computation and attach it in your letter.

Your lender might not grant your request on your first try. They usually do this to discourage you from taking any further action. The case might seem hopeless at first but if you are vigilant and persistent, you have a high chance of reclaiming your money back.

Make sure you give them an ultimatum. This is to inform them that you know what you are doing and are not afraid. Get the Financial Ombudsman Service involved if you receive no reply or another rejection. Let them know that you are ready to take the legal steps against them if necessary.

How can I get the PPI refunds?

Getting your PPI refund may take some time so you need to be a little patient. Know how to talk and deal with other people. Don’t be surprised when lenders become aggressive in answering back. The process could take one or two more years in most cases.

You can also choose to hire the services of a claims company to make things easier for you. You can look for a reliable claims company on the internet. Make sure you find a reputable company that can negotiate your claim. They should have experience in dealing with mis sold PPI claims and can provide you with client references to back it up.

You should also do your own research if you want to find the best financial consultant group. There are many cases involving PPI claims in England, so you can expect many companies offering you their expert services. Search the website of each company and check out their portfolio. You can get your PPI refunds easily if you know what steps to take. Choose a good claims company if you want to get back what truly belongs to you.

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