PPI, otherwise known as payment protection insurance is a policy that has been hugely mis-sold by lenders in the United Kingdom over the last ten years. It was originally devised to be a fall back plan to help borrowers who found themselves in unfortunate circumstances and couldn’t pay their loan, credit card or mortgage repayments. However, it has been mis-sold in a vast amount of cases and due to this many people are now going through a process to claim back PPI. Although generally associated with loans, if you have taken out a credit card in the last ten years it is likely that you are also paying for PPI.
Why is PPI So Controversial?
You may be wondering why so many people are attempting to claim back PPI, especially as it sounds like a really good policy. The truth is that PPI has a very high rejection rate and the amount of people who can actually claim on their insurance is very small. There are dozens of loopholes that lenders do not tell borrowers about and in the majority of cases, the people who take out a PPI insurance plan would be unable to claim if they needed to. This has led to thousands of borrowers attempting to claim back PPI on their credit cards as well as on a number of other financial services.
How Can You Claim Back PPI?
If you want to claim back PPI you should know that on average the process takes around 12 weeks. You will first need to check your credit card policies and then write a letter to your lender expressing why you feel you are within your rights to a refund. Your lender is likely to reject your letter and so you can either get in touch with a PPI claims advisor or as a last resort, the Financial Ombudsman. You are eligible to claim back PPI even if you have already paid your credit card debt off and you may find out that you are entitled to a large sum in repayments, although the longer you leave it the less likely a successful claim is.
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If you have taken out a credit card over the last ten years it is likely that you have been paying for a service that you neither need or want. If so you are well within your rights to claim back PPI.