FAQ: Payment Protection Insurance FAQ's
How Will You Receive Your Payment Protection Insurance Refund?
Recent figures suggest that the number of unresolved mis-sold PPI claims still remains extremely high. Alongside these individuals, there are some consumers who have failed to claim their compensation, perhaps unaware of the money they could receive.
For anyone who is in the middle of a claim or is considering making one, there are a number of common questions which may be asked. One of these is over how the refund will be received and how much it will be for.
Of course, with any claim of this nature, the money and compensation that you receive is always going to be one of the most important things on claimants’ minds.
The important thing to remember is that whilst the claim amount will vary from case to case, the method of payment will usually be the same.
After a successful claim, banks will reimburse individuals the amount agreed and this could see anything from a cash transfer to a cheque being used for payment.
Alongside this form of refund, banks may also choose to offset the refund against any money which is still owed to them. For example, an individual who took a loan and was wrongly charged for PPI on it could see the money they reclaim used to pay off outstanding debts with the same lender – for any loans or credit cards they may have taken since the case they are claiming for.
This will mean they will not receive the refund as cash but will instead have it used to lower their current repayments or debts – giving them a more secure financial position.
This decision is made by the bank or lender and will therefore vary from case to case.
Another question commonly asked about PPI reclaims is when the repayment will be made – something which is considered just as important as how it is received.
The number of claims you make does not affect the overall speed of resolution, as each claim is handled independently. This means that if one claim does suffer delays it will not hold up any others.
This provides a fair and just system for claimants, allowing them to benefit from the quickest resolution times possible on an individual basis.
Those who are making multiple claims may also find this affects how their claim is paid. Some firms may group the amounts together, paying the individual in one lump sum whilst others may pay each claim individually. This will often depend on whether the claims are for products obtained from the same lender or whether they are from different banks and companies.