FAQ: Payment Protection Insurance FAQ's
How To Claim Payment Protection Insurance
With media coverage continuing to report on mis-sold PPI, more cases have come to light and understanding the process behind making a claim has become a priority for a large number of people. The mis-selling of PPI impacted financial products which were taken out in the last ten years, meaning that a large number of people have been affected.
If you took out a loan or credit card in the last decade you could be affected.
Claiming for mis-sold PPI can therefore allow people in this situation to receive a cash payout for their losses, a reduction in the current balance of their loan, or a combination of the two.
PPI is mis-sold to individuals when it was offered without their knowledge or with misleading information. Some people received the policy because they were under the impression it was compulsory, whilst others received the insurance product even though they did not qualify for it.
If you find that payment protection was added to your agreement under these circumstances then you could be entitled to receive a payout for the money you would have paid.
After reviewing your own records, you can take this information to a company like iSmart that is experienced in handling similar complaints or you can manage your claim yourself. Where you were unsure whether you had a claim, iSmart would be able to help establish this for you.
iSmart is one of the few companies to provide an online application for individuals to complete when beginning their claim process, making it more convenient and easier to manage.
Once your case has been reviewed, the company will be in charge of taking the relevant action if you are considered eligible for compensation. Sometimes the case will be referred to the Financial Ombudsman Service (FOS) and in other circumstances they will be handled independently.
Regardless of what occurs, if you are successful then you could be in line to receive around £3,750 which is the average amount of loan PPI compensation we have awarded (correct at 31st Dec 2012)
In fact, over £1billion was paid out in claims between January and October 2011*. However, it must be remembered that each claim is different and the value of the claim will be determined based on your specific circumstances.
In total, since 2005 the Financial Services Authority (FSA) has seen in the region of 1.5 million claims made for mis-sold PPI, resulting in a large number of payouts.** Numerous banks reported that PPI was the biggest source of complaint for their customers, accounting for 31% of all complaints for NatWest and 47% for the Royal Bank of Scotland during 2011.***
Claiming for PPI is therefore something which all affected individuals should be looking to do.
The use of online systems and claim companies like iSmart could facilitate the claiming process, making it more convenient for those mis-sold PPI to receive the money which they are due.
Claimants can lodge their case themselves or use a claims firm like iSmart and provide them with the relevant information concerning their situation. The firm will then handle the case for them with the intention of settling it in their favour.