It's hard to believe, but PPI is still causing a lot of issues for people today. In case you haven't heard about it, this story does require some background understanding. PPI means policy protection insurance, the most popular name for a type on insurance on bank loans or credit card bills. With this in hand, you should be safe from a sudden chance in your financial status, at least until you can get back on your feet. If done well, it can be a good deal for customers and banks.
You'd be forgiven for wondering what all the fuss is about in the UK. Sadly, we've somewhat messed up our PPI handling. It wasn't being sold correctly to customers. In fact a lot of people who could never have used the policy - the unemployed, ill, or retired - were being forced to take on PPI as part of their loan thanks to pushy, commission driven bank staff. It should never have got to this state, but ultimately the FSA had to step in and force banks to repay customers who had been unfairly sold this type of insurance.
Of course, all claims have to be legitimate to succeed. Some people were sold PPI is good faith, and even benefited from it, so that can't turn around and ask for their money back just because it's since developed a bad name. Unfair claims have slowed down the processing of PPI compensation, despite the fact that the government and the banks in question have employed a lot more staff to handle it. An additional issue is the services of claims companies being offered to victims of PPI, who then take a cut of the compensation, or an upfront fee.
If you're the customer of a bank that has been mis-sold PPI, the best approach right now is to go to your bank directly. You may even be able to do this online, as many money providers have set up automated systems for registering PPI complaints. This way you get things handled quickly, for free.
It's a no-brainer really. Go to the bank yourself and you know you're on the way to straightening things out without some other company taken your compensation.
You'd be forgiven for wondering what all the fuss is about in the UK. Sadly, we've somewhat messed up our PPI handling. It wasn't being sold correctly to customers. In fact a lot of people who could never have used the policy - the unemployed, ill, or retired - were being forced to take on PPI as part of their loan thanks to pushy, commission driven bank staff. It should never have got to this state, but ultimately the FSA had to step in and force banks to repay customers who had been unfairly sold this type of insurance.
Of course, all claims have to be legitimate to succeed. Some people were sold PPI is good faith, and even benefited from it, so that can't turn around and ask for their money back just because it's since developed a bad name. Unfair claims have slowed down the processing of PPI compensation, despite the fact that the government and the banks in question have employed a lot more staff to handle it. An additional issue is the services of claims companies being offered to victims of PPI, who then take a cut of the compensation, or an upfront fee.
If you're the customer of a bank that has been mis-sold PPI, the best approach right now is to go to your bank directly. You may even be able to do this online, as many money providers have set up automated systems for registering PPI complaints. This way you get things handled quickly, for free.
It's a no-brainer really. Go to the bank yourself and you know you're on the way to straightening things out without some other company taken your compensation.
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Use this simple PPI calculator to find out how much compensation you could be entitled to.
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