Despite all the circumstances in which payment protection insurance or PPI can really be beneficial, there are still a lot of people who have become so apprehensive when it comes to purchasing it. No one can actually blame them because over the years, reports about the mis-selling of such insurance have been increasing. But how can you determine if you really are qualified to file for reclaims? Well, here are some helpful guidelines:
Forced to buy PPI
Upon applying for a loan, it is likely that the lending company may have forced you to purchase PPI alongside it as they threaten you not to process your application if you don’t. If this is the case, then you can apply for reclaims. Payment protection insurance should always be optional among loaners and they should not be coerced into buying the insurance just because the lending company made them do so.
Purchased PPI when self-employed or unemployed
Payment protection insurance is not to be sold to people who are self-employed or unemployed during the time of loan application as this will only render the insurance as invalid. Remember that PPI is intended to provide financial security and assistance to loan payments only during cases of unexpected unemployment and if the person has no job to begin with, then he or she will certainly not qualify for claims.
Not warned against excluded illnesses
A lot of cases of mis-selling involve not being informed about what the insurance policy entails. Payment protection insurance is designed with so many exclusions and limitations. This means that not all illnesses, accidents, and injuries can be considered as valid cases for claims and so, a client should first be aware of such details before the actual purchase of the policy. But if you were not given the rightful explanations regarding such provisions, then it is only proper that you ask for reclaims.
Uninformed about increased loan interest rates
You very well know that payment protection insurance is offered to clients alongside their loans. What credit companies do is to increase the interest rate as a fraction of what you pay automatically goes for the payment of PPI. If this has not been explained to you and the credit company was not able to present you with the real amount that you have to pay for the policy, then you are likely to be entitled to seek for reclaims.
Now, applying for reclaims is definitely not an easy process. It may take such a long time as mis-sold cases need to be proven before refund may be given. The first thing that you need to do is to present necessary documents that will serve as evidences of the mis-selling. These documents will be used for evaluation.
You must, however, be careful when filing for reclaims for mis-selling as there have been many cases in which banks and insurance companies who process reclaims do not give back fair refunds for the unclaimed premiums. Policy holders were only given a fraction of what they actually paid for as the interest of the insurance providers always comes first. But do not worry as there is a way in which you can avoid this. You can always seek professional help when filing for reclaims as this is the only way in which you can be sure that you are compensated rightfully. There are a lot of insurance solicitors out there that are willing to lend you their services. What they do is to review your case and give you advice on the whole reclaim process. They can look over your documents and file the case on your behalf. At the same time, having their services can definitely help you receive the right amount of refund for your unused insurance policy.
