I don’t know about you, but recently I have been getting a lot of texts saying ‘Think you’ve been mis-sold Payment Protection Insurance? Call this number…’ Well, I might have been, I might not have been, trouble is, I’m not really sure either way. I know I’ve had credit cards in the past and they may have had PPI included, but to know under what conditions they would have been mis-sold is a bit beyond me to be honest. And I don’t think I’m the only one. If you are confused as to whether you might have been mis-sold PPI then read on. I have looked into the conditions and as it stands, they are fairly simple. So lets set them out.
Why can we claim now?
Basically what happened was that the law was changed so that PPI can no longer be sold at the same time that you take out a credit card, loan or finance package, (for example, if you get new furniture or white goods on HP). What used to occur was that PPI would be pushed as part of the package deal at that same time. The problem was that there were so many exclusions with PPI, which were often not explained to the customer, that could have left them unprotected and therefore rendered the PPI invalid. As such, many people paid for a policy they wouldn’t be eligible to make a claim on.
What are the exclusions?
PPI would not have been valid if you were unemployed. So, if you were a student, house wife/house husband or carer when you took the policy out, you would not have been covered. PPI does not cover people who are self-employed either. And, if you are suffering from some specified medical ailments, such as back pain or stress, that prevented you from working you would also not be covered. If these terms were not explained to you at the time, you can make a claim for compensation.
How do I Claim?
There are two ways of making a claim. Before the law was changed, it was up to the customer to contact the bank if they wanted to seek compensation, but now banks have a duty to get in touch with customers who they think may be eligible for compensation. So, you could wait for your bank to get in touch with you. The other option is to contact your bank or credit card provider, or the company that sold you the PPI in the first place, and tell them that you think you may have been mis-sold PPI. Give them all the details of your loan or credit card and allow them around eight weeks to get back to you. If, after this time you have not heard anything, or you think they have made a wrong decision, you can take your case further. You can call the independent Financial Ombudsman at 08000 234567, email them at firstname.lastname@example.org or visit their website at Financial Ombudsman Service.
And do not think that the banks have little funds to settle these claims. Many of them have set money aside especially for PPI claims. For instance, Barclays Bank have put away £1billion to cover compensation for mis-sold PPI and Lloyds Banking Group, which owns Lloyds TSB, Halifax and Bank of Scotland, also has £3.2billion ready for customers’ claims.