Guideline to Payment Protection Insurance Claim
In the UK, PPI scandal is the biggest scandal in the history of the banking sector. Banks like HSBC Lloyds, Barclaycard, and Santander were not only fined huge but also told to refund PPI claim back to people. By June 2019, people can claim their PPI back and banks will have to refund them their money.
But how will consumers know that banks have mis-sold them an unwanted PPI policy? They can follow following steps for making a PPI claim:
- They must understand how and why they have a mis-sold PPI policy
- They should calculate the PPI amount using a PPI claim calculator
- Finally, they must raise a complaint regarding the PPI Claim
In the UK, before the serious actions were taken by FCA, many PPI claims were rejected. So, FCA has given people another chance to reclaim their PPI and also instructed banks to individually call the people with PPI policy.
An Array of Guidelines for PPI Claim
For every bank, there is a different procedure towards claiming the PPI policy. Make sure to not use any claiming agent as they will cost you higher for no reason. Making your PPI claim is absolutely free.
There can be a number of reasons that make people file an objection about their mis-sold PPI policy by any financial firm. Financial Standard Authority (FCA), UK has outlined some reasons behind why to heave complaint against a mis-sold PPI Claim:
- People filed a claim for accident, sickness or unemployment was rejected due to exclusion of some terms and conditions while the policy was sold.
- PPI was mis-sold to consumers because:
- They were not aware of the PPI had been added along with their loan, credit card, etc.
- Poor communication and lack of information at the time of buying led to mis-sold PPI without the awareness of customer.
- Consumers who have bought single premium along with a PPI premium experience to pay a higher premium every month.
PPI Claim Calculator
The calculator helps people understand the amount of money they can get through the claim. PPI is often sold with the loan, mortgage, and credit card. Depending on the entity PPI has been sold with, there will be different refund amount for PPI claim. But the core of PPI claim calculator is that the refund will be an aggregation of 8% of the PPI premium and value of original premium paid.
In the case of credit cards, the banks will check the card statements that have no PPI involved and see if there is some sort of difference. In the case of difference, you will get the data on the top of PPI.
People can maintain a spreadsheet with formula in order to build their own PPI claim calculator.
Finally, the consumer will have to fill the different PPI claim forms for different banks and directly send those to the prescribed address selected for complaining by the banks.
To make the PPI refund work, a consumer must understand the discrete elements that influence the whole process to get the exact amount of money back in hand. Money is a valuable asset in life and one must make sure that it is not being wasted due to inappropriate and illegal steps taken by financial companies.
Author Box: Frank Spark charts out a proper guideline which helps you in the case of a mis-sold PPI. Taking help of the PPI calculator also proves crucial towards knowing the exact refund amount you are supposed to get.
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