How to Claim for Mis-Sold PPI Using a PPI Claims Company
Claiming PPI with the help of a PPI claims company is simple and stress-free. Follow our simple 4-step guide and reclaim the money you are owed.
Since the announcement of the PPI deadline, the banks and PPI claims companies have found themselves increasingly busy. The deadline has been set for 29th August 2019 — a date that is now just 14 months away. The deadline campaign by the Financial Conduct Authority (FCA) is fronted by Austrian-American actor, Arnold Schwarzenegger. His recognisable face and voice can be seen and heard on the television, radio and billboards across the UK.
In the first three months of 2018, the banks paid over £100 million to consumers. This brings the total paid since 2011 to over £30 billion. The banks have put aside a considerable amount more to refund customers until the date of the deadline.
64 million PPI policies were sold in the UK, primarily between 1990 and 2010. The insurance was most commonly sold with credit cards, loans and mortgages. However, it’s not uncommon for people to make successful claims on store cards, car insurance and catalogue cards.
The FCA is advising consumers to start their claim soon, so they don’t pass the opportunity to make a claim before it’s too late.
Making a PPI Claim with a Reputable PPI Claims Company
Those wishing to make a claim are able to do so themselves. However, choosing a reputable claims company to make a case on their behalf is a preferable option for many people.
These companies save individuals time by doing checks for mis-sold PPI and contacting the relevant bank or lender. If the process seems too onerous or you simply don’t have time, these companies offer a service to reclaim your money.
Although some people associate PPI claims companies with cold calls, many do not use cold calls to generate custom. Instead, some provide unparalleled service, producing excellent customer reviews that people are happy to share. All claims companies are regulated by the Claims Management Regulator and you can check a company’s status on their website. But, after April 2019, claims companies will be regulated by the FCA, with new guidelines and rules for how to conduct their business.
If you are looking for a notable and trustworthy company to handle your claim, follow the steps below.
1. Find a no win, no fee PPI claims company
If there is one thing you need to look for in any claims company, it’s a no win, no fee policy. This means that you won’t be charged any upfront fees for the work that the company do. The fee will be applied only if your case is successful.
As well as finding a no win, no fee PPI claims company, you should also examine the associated fees of the claim. As of 10th July 2018, all claims companies will have to charge 20% + VAT (or less) for their services. Some companies currently charge more than this, while others are below this threshold. Find a company offering a fair price for their service.
2. Contact the claims company, offering as much information as possible
Once you’ve found a reputable claims company, contact them online or via telephone. Even if you no longer have your paperwork from previous credit cards or loans, a claims company will be able to investigate any previous indications of PPI. Many consumers have been surprised by how many PPI policies they had.
The more information you can give the company, the easier it will be to locate information. This can include previous names, addresses and any banks or lenders you remember having financial products with.
If a previous PPI policy is found, the PPI claims company will then contact the appropriate bank or lender. In some cases, this may be a different bank to the one you had the loan or credit card with, as some banks and lenders have been taken over.
The final piece of information you will need to offer the claims company is about how your PPI was mis-sold. Many people were unaware they had the insurance, were told that it was compulsory or were not told all the correct terms and conditions about the insurance. All of these are forms of mis-selling.
Other cases of mis-sold PPI could be due to the Plevin rule. Plevin refers to a PPI case brought to the Supreme Court in 2014. The PPI sale was 71% commission and this was not disclosed to the customer at the time of purchase. The court ruled that this high percentage was also a form of mis-selling. As such, other consumers can make a claim if over 50% of their PPI sale was commission.
These types of claims mean that many more people are due a refund as it was common for the commission on a PPI sale to be 67%.
3. Wait for your outcome, with regular updates
A good claims company will keep you updated throughout the process of your claim. It can take a number of months for your case to be solved as the process of gaining information about PPI and contacting the bank or lender can be lengthy. The banks should reply within eight weeks of receiving your claim, but older cases of PPI can take much longer.
The claims company will handle all communication with the bank, meaning you don’t need to deal with the hassle of chasing up the claim if you haven’t received an outcome.
4. If your claim is unsuccessful, consider contacting the Financial Ombudsman
If your claim is successful, you should receive the money from the bank shortly after it notifies you of the outcome of your claim. If your claim is not upheld by the bank but you believe that you have a strong case, you can ask the PPI claims company to refer the case to the Financial Ombudsman. The Ombudsman will review the case and either uphold the decision made by the bank or uphold the case from the individual, declaring that the bank should pay any money owed for mis-sold PPI.
A good claims company will use PPI software from Logican. Our PPI software, LogiClaim, helps claims companies to handle a high volume of claims by keeping all data safe and keeping each portfolio up-to-date when an update arrives from the bank.
The efficient software enables automatic updates to be sent to clients regarding claims and chaser letters to the banks when an outcome has not been made within sufficient time. We recommend finding a company using this unique and efficient software.
Logican works with the best PPI claims companies by providing PPI software which makes handling a large volume of claims significantly easier. Start your claim today to make sure you don’t miss out on the opportunity of making a claim.