Payment Protection Insurance (PPI) is a phrase that by now, most people are well aware of. What many fail to realise however is that they could have been affected by it and would therefore be entitled to an often substantial reimbursement. Even some who believe they were mis-sold the flawed insurance policies on their credit card, loan or mortgage refrain from taking action because they feel overwhelmed by the cold calls and relentless information regarding the issue, unsure of what options are truly available to them.
With 63% of all complaints regarding banks and insurance being directly related to PPI, the problem is evidently still widespread and given the current calls to have all claims resolved by April 2014, now could be the perfect time to decide which route is best suited to you and finally take action.
Go it alone
Many people are unaware that it is entirely possible to make a successful claim without using outside help. By diligently checking through your contracts and paperwork, you can identify if you have been paying for PPI: If you did not agree to the policy; were told it was compulsory or suspect if fails to provide you with adequate cover, you can lodge a complaint by going directly to your lender and voicing your concerns.
Following the process step-by-step and persevering can ultimately end up being just as successful as seeking help and while opting for this method is often the most time consuming and likely to lead you to initial rejections, upon an eventual win, you keep all of the money you reclaim from your bank or lender, as there are no external fees to pay.
Financial advisors and experts
Perhaps you believe you have been affected by a mis-sold policy but are hesitant to go directly to your lender until you know all the facts and what rights you have to complain. This is where financial advisors come into play, as they can offer impartial, independent advice on the best route for consumers to take.
UK residents can utilise the help of the Financial Ombudsman Service; an organization offering free assistance with on-going monetary disputes between businesses and customers by representing mistreated consumers. Countries outside the UK often have equivalent services available to them, while almost everyone will have access to an advisor. Sometimes all people need to equip them to make a claim is the knowledge that they have a chance of success and how best to go about achieving it.
Professional claims companies
Perhaps the most common and widely publicised method of reclaiming PPI is to contact a third-party claims company to take up the case on your behalf. While some people are put off opting for this route due to irritating cold calls and hesitation over the companies’ reliability, there are a number of legitimate organizations that existed long before the huge scale outbreak of PPI complaints a few years ago. Though they request a percentage of your fee if your claim is accepted, they eliminate any stress from the reclaiming process by taking care of all the leg work for you, while also often having a much higher success rate than those who go it alone.