Over the years, banks, credit card companies, and other lenders have made millions by selling their customers payment protection insurance (PPI) as a hedge against default. While some customers could truly use the service, millions were missold the insurance for various reasons, including being unemployed, self-employed, retired or having a medical problem that stopped you from working for a time. The individuals that were missold the insurance now have a way to recoup the amount that they paid in premium costs for the insurance.
Here are some steps you can take to claim back your PPI premiums.
File Your Claim
In order to claim back PPI, you must file a claim with the provider that charged you the PPI premium. In some cases, the account holder will get a document from the account provider notifying them that they potentially were missold PPI. In other cases, the account holder will need to initiate contact after verifying that they had paid PPI premiums in the past. The submission guidelines will vary by provider, so contact the provider to begin your claim as soon as you are sure that you paid for PPI in the past.
If you have documentation from the affected account showing where you paid PPI premiums, include copies of the documents with your claim to strengthen your position. Documents that show how much you paid over time would be the most effective, but any documents showing charges for PPI should be adequate. If you are missing documentation for the account, you may be able to acquire it from the account provider, as they are required to maintain their records for a period of at least 6 years.
Other Actions To Take
If your PPI claim has been rejected or held for more than 8 weeks by the account provider without resolution, you can resubmit your claim to the Financial Ombudsman Service for review. The FOS handles thousands of PPI claims weekly that have been held up or rejected and a significant portion of those claims reviewed are ultimately approved. The claim to the FOS must be submitted within six years, or three years after you first became aware that you might have grounds for complaint, for the claim to be valid. If your claim is ultimately rejected by the FOS, there is no other recourse available for you to get back the amount you paid in PPI premiums.