Everything You Need To Know About Payment Protection Insurance

PPI refers to payment protection insurance and it can give repayments to the family members of the borrower, in case he/she becomes disabled, dies or loses a job. People often tend to take it as an alternative to income protection insurance. One can get this PPI whenever you apply for a credit or debit card. It often happens that customers remain unaware that they have a PPI and this leads to problematic situations.

Still Stuck With PPI Policy

Are you aware that your credit card provider might have mis-sold you PPI policy? If not then you have to gain proper information about the same. Most banks have begun to write to their customers regarding mis-selling of such policies. If you receive a call or get any letter from your bank then don’t ignore it. This is because it might carry the information regarding mis-sold PPI.

However, it is not always possible for a bank to inform each and every customer who has taken a loan. So, it is better to check the paperwork concerning loans or credit cards for checking whether it has any PPI claim or not.

Claim Back Compensation

If you are among millions of people who have been mis-sold a PPI that you are not comfortable with then you can get an opportunity to reclaim it. Those who want to reclaim PPI can have a look at the below-mentioned points.

  • Write a letter to a credit card provider: The procedure which is followed for claiming the money is quite an easy process. Banks can give you a form on their websites where you can fill up the relevant details. You need to give a proper explanation regarding your claim that PPI has been mis-sold to you.
  • Copy relevant document: You can make a copy of the document that indicates to the fact that you have taken a loan and you have been able to make payment for it.
  • Response after two months: If you are able to fulfil the procedure for claiming compensation for PPI then you will receive a response within two months. The Ombudsman will provide a questionnaire to an applicant with which will give confirmation that PPI has been mis-sold.

Is There Any Time Limit?

If you raise this question then the answer will be no. There is no time limit for claiming for your PPI compensation. Whenever you find that you have been cheated on by your credit card provider you can immediately make preparation to reclaim PPI. In order to get complete guideline regarding the time for reclaiming it have been enlisted below.

  • Policy over six years: It is difficult for a person to get compensation if the PPI has been issued before six years. This is because banks do not keep records of loans that are sanctioned before six years.
  • Active insurance: Suppose your policy of insurance is still active then this six year gap will not create any problem to obtaining the compensation.

Therefore, it is clear that one needs to be aware of payment protection insurance as it will certainly take a toll on your pocket. Once you are sold a PPI should check for the procedures involved for reclaiming it.

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