FAQ: Payment Protection Insurance FAQ's
Will A Payment Protection Insurance Claim Affect My Relationship With My Bank Or Card Company?
Since the mis-selling of PPI first came to attention, banks and card companies have been found to be two of the largest groups responsible for mis-selling this product.
With so many people finding themselves affected by this issue, the urge to reclaim lost money has become highly visible over recent years. The vast majority of affected customers have become increasingly vocal over their right to claim and the outrage which they feel over their mistreatment.
Yet despite this, there are still a few common concerns held by those who feel they may be entitled to make a claim – and one of these is how the claim process will affect future relationships with their bank or card company.
Many customers worry that if they make a PPI claim against a bank or credit card supplier it could affect their existing relationship with their lender.
Nobody wants to feel that they will suffer further mistreatment for their actions and this could therefore impact their claim decision.
However, this is an unfounded concern and all individuals should be aware that their relationship with their bank or card company will not change because they have made a claim for mis-sold PPI.
This would be completely unethical and with a vast number of claims being made, it would mean that lenders would have to change their practices with a large proportion of their customers. Not only that, but it is the duty of the lenders to offer compensation to their customers, making them eager to treat them fairly throughout future dealings.
For those who are still concerned, it may be reassuring to know that bank and card company practices are also monitored by the Financial Services Authority (FSA). This body will act to ensure that customers are treated fairly irrespective of their situation regarding PPI claims and complaints.
The FSA has even launched a “treating customers fairly” initiative which is designed to work alongside the Banking Code to ensure all customers receive fair treatment.
This dictates that any claim that you make or compensation you receive will be handled in an unbiased way and without prejudice. Any further dealings with the company or bank following the claim will be conducted without influence or bias and your status with the bank and credit rating will not be impacted.
For banks or lenders to treat customers differently based on whether they had lodged a claim would presumably lead to further backlash – something which lenders would be eager to avoid.
This is because the PPI mis-selling issue led the public to experience a severe lack of confidence in their banks. Naturally, this situation is not conducive for lenders and will therefore be something they avoid at all costs.
This means that those affected can claim compensation whilst maintaining their relationship with their bank or card company, helping to give them a more positive and secure financial future.