If you have successfully applied for a loan, a mortgage or a credit card in the United Kingdom in the last ten years it is highly likely that you were sold payment protection insurance during the process. The insurance is supposed to cover your debt in the unfortunate circumstance that you are unable to repay your credit payments due to illness, redundancy or any number of other reasons. However the problem lies in the fact that most payment protection policies have loopholes that make it extremely hard for a borrower to activate the policy. This is why so many people are actively searching for information on how to claim back payment protection insurance.
Step One – Read Through Your Policy
The first step in how to claim back payment protection insurance is to read through your policy carefully and check that you are paying for payment protection insurance. The more recently you took out the policy, the more chance you have of successfully reclaiming it however don’t be disheartened. If you were mis-sold the policy you still have a good chance. Mis-sold policies can be due to any of the following:
- Not being aware the policy was optional
- Not being aware you had took the policy out at all
- Not being told about exclusions such as pre-existing medical conditions
- Being retired, self-employed or unemployed when you took the policy out
- Not being told about the added interest that comes with a PPI policy
Step Two – Contact Your Lender
Once you have completed the above step, the next thing to do is to contact your lender and ask for a reclaim on your policy. If your lender says yes straight away the process is complete however most people who look for information on how to claim back payment protection insurance find that their lender will refuse to acknowledge their claim initially. This is where step three comes in.
Step Three – Take Things a Step Further
If your lender refuses to repay payment protection insurance, the last step is to speak to a PPI claims expert or the financial ombudsman and get them involved. In the first case your PPI claims advisor will initiate further contact with your lender to try and reach a successful outcome. Usually this is all that it takes but a final step is to inform the financial ombudsman who will then use all the facts to come to a final decision. If they agree that you were mis-sold payment protection insurance, your lender will be forced to pay.
If you have been searching for information on how to claim back payment protection insurance, we hope that the outcome of your case is successful.