The recent court rulings about PPI have brought a windfall to consumers. UK Courts directed banks to pay the consumers the money that had been collected from the consumers in the form of mis-sold PPI policies. According to the UK courts, the process of reclaiming PPI has also been easy and consumers have to apply to the banks directly to ensure that they get their money back as quickly as possible. The court rulings means that more then three million people can now check their credit
How Much Money Has Been Set Aside For The PPI Claims Process?
The UK Courts have directed large national banks to pay back an estimated £4.5billion to consumers who were mis-sold the policy. Banks have to pay back the premiums along with the interest rate that was applicable at the time. The Financial Ombudsman estimates that more than £3.2 billion will have to be paid for older customers while £1.2 billion will have to be paid to new customers who were made aware of the mis-sold policies. Banks have decided to launch an appeal so that they can contest the payments that are being made to almost 30% of the consumers but this step is still not clear.
How To Reclaim PPI
We suggest you claim back your PPI as quickly as possible. The process of applying is quite simple. Just find out how many mortgages or credit cards you had taken since 1999. Once you have the details, check the statements. Usually, the statements will have a deduction every month. It will show up as payment made to another insurance company. Total up all the payments that you made in the form of a PPI payment separately. If necessary, you can use online calculators to help you in reclaiming PPI. Once you have an idea of how much you much you are due, you will have to prepare a PPI claim letter.
Where Can I Get A Payment Protection Insurance Letter?
You can download the format from any website. Prepare separate copies of the letter for each credit card or loan and ensure that you keep a copy for yourself. Mail the letters through registered post and wait for the bank to reply. Banks have been directed to reply back in 60 days and deal with the PPI Claim as quickly as possible. If the bank delays the payment process, then the complaint may be forwarded to the Financial Ombudsman for deliberation. Most of the time, a banking representative will get in touch with you and let you know how much you will get in the form of reimbursement.
Does Everyone Get What They Claimed?
More than 80% of the applicants who have made claims have been paid their amounts in full. However, banks have put the payment process on hold as they have decided to appeal the decision. This means that they have 21 days more to contest the court decision. Till the time that the court does not finalize the deal, complaints may be put on hold. However, you are supposed to first complain the bank with a letter containing all your details. If the bank does not provide details in about 40 days then you can forward the complaint to the Financial Services Authority.
Do I Need To Hire An Agent To Do The ‘Reclaiming PPI’ Process For Me?
No you do not actually need an agent to help you in getting back PPI. Most banks have made it really easy for the consumer. If you are not sure about the loans or credit cards that you have taken from a bank, you can write to them and the bank will send your past and present information. Based on the details you have calculated, you can then get in touch with the bank and get your PPI payment as quickly as possible.
There is no need to visit the bank or call it up as banks have been instructed to expedite the payment process. The bank has to get in touch with you in about 60 days and finalize the payment in about 90 days. However, if you cannot deal with the process yourself, you are free to hire a person or agent who will claim the required PPI amount from the banks. Please note that these agents will claim the highest amount possible and they will take a percentage of the whole amount.