How to make a reclaim on Payment Protection Insurance/PPI

[di30]

There are many reasons for being mis sold, I will post as I go along.

Here though I will post a link to the reclaiming questionnaire, this is now recommended to complete instead of a letter, but you can of course write a letter in your own words if you want to.

(Please ask for any assistance on letter writing if required).

The Financial Ombudsman Service (FOS) issued a Reclaiming questionnaire for the purpose to make a reclaim on your mis sold PPI.

http://www.financial-ombudsman.org.u...stionnaire.doc

Check this questionnaire through and ask for any help if required.

[di30]

Re: How to make a reclaim on Payment Protection Insurance/PPI

Some common reasons on being mis sold PPI

Some common examples of PPI misselling

Were you told insurance was compulsory?
It’s a common complaint that consumers are told they must buy a policy from the same provider as the loan or credit card to be accepted for the product. Any company that subscribes to the Lending Code agrees it will not insist that you buy an insurance product from them, so although it can request that you have PPI from somewhere, it does not have to be from them.

Therefore if the salesperson:

• didn't make it clear the policy was optional,
• implied or stated the loan would be more expensive if you didn’t take the insurance,
• implied or insisted you take out their policy to qualify for the product or help with your application,
• was very pushy when selling the product so that you felt you could not say no, or
• would not let you continue with the loan application if you did not sign the insurance agreement as well,

Did you already have insurance cover?
If you were already covered - for example you had a separate income protection policy or your employer provided an illness and redundancy package, and you informed the salesperson that you had this cover but they insisted you also had to take their insurance; or you weren't asked if you had any alternative cover.

Have you tried to cancel your policy?
Prior to Mar 07 some contracts had terms that said you could not cancel the policy even if you had paid off your loan or had a change of circumstances. Since the FSA looked into these refund terms, cancelling is now possible for all current and future contracts. So if you tried to cancel your policy and were told you weren’t allowed or that you needed to take out a new agreement with different terms.

Is the insurance term too short?
Until banned in May 09, long term loans were often sold with a single premium policy lasting for a maximum of five years, no matter how long the loan is for. If you’ve now checked your policy and found that it does not cover the full term of your loan, but thought that it did, the salesperson should have pointed this out.

Do you have a joint loan but the insurance is only in one name?
If you’ve checked your paper work and have found that all names responsible for paying back the loan are not covered under the insurance, which is unfair in itself as either could be chased for money if you get behind with payments, and were told or thought that all names were covered.

Did you sign up for the finance in a shop?
If you got a store card or insurance on a car dealership loan, it was likely to be sold by someone with no financial background, meaning more room for error, and a whole catalogue of misinformation could have been given. Check if this was sold in your best interest.

Just realised you have insurance?
Have you just checked your loan agreement or credit card statements to find that you have been paying for insurance, but didn’t realise until now that you had it or what it's for? Some old agreements, particularly store cards, may have used pre ticked boxes requiring you to opt out of the insurance rather than opt in, which is unfair.
In summary…

If you have an inappropriate PPI product and weren't told it was inappropriate or you don’t think you were given the full information on what the policy would and would not cover, send a letter asking for an explanation.

[di30]

Re: How to make a reclaim on Payment Protection Insurance/PPI

The list goes on........

So if you believe you have a case then give it a go.

Complete the above questionnaire, send it to whoever set up your account/sold you the product (Head office or Complaints dept) if they have one.
Keep copies of all you send and receive - in case you need to refer back to your case at some point.

The normal timescale is that of 8 weeks, but they sometimes write to request for more time.
They should keep you informed of the progress of your complaint.

However, if you've not heard anything by the time 8 weeks have passed, you do have the right to make a complaint to the Financial Ombudsman Service (FOS), I would check your Credit Agreement to make sure the business were regulated by GISC of FSA who taken over on 14th Jan 2005.
The FOS are only able to take on complaints if regulated by the above govening bodies.

Still give it a try though, because if the FOS are unable to investigate due to the business not being regulated by the stated, they will possibly suggest another avenue to take, in most recent cases through the Underwriter/Insurer of the loan business, they will tell you the procedures from there.
And the Underwriter/Insurer would have highly likely to have been governed.

For more on how to complain to the FOS details below:
http://www.financial-ombudsman.org.u...complaints.htm

I personally suggest if you can afford to - use Signed for/Recorded delivery when making a complaint.
You can do so by posting at your local post office, they will provide you with a receipt with a Tracking number.

To check the status of delivery:
http://www.royalmail.com/portal/rm/p...1&catId=500185

[di30]

Re: How to make a reclaim on Payment Protection Insurance/PPI

As you will know by now after reading this thread, the Financial Ombudsman service (FOS) have over the recent months supplied a questionnaire.
This is optional, but the chances are if these are not sent to the ones whom your making a reclaim from, they may possibly send you one anyway, maybe even one of their own.

However, there is nothing stopping you writing a letter of complaint to make a reclaim on your mis sold Payment Protection Insurance (PPI).

I have enclosed a template letter - but if you decide to want to write a letter, try to tweak in your own words, and obviously your own reasons for being mis sold.

Example below. (Maybe a little on the jumbly side as I copied and pasted this to my documents some time ago).
.................................................. .................................................. .....................

your name and address

date

name and address of bank/broker/
credit card which sold the plan
policy number/credit card number

Dear Sirs,
I bought the above plan from you on (date – as near as possible). I now wish
to claim back my premiums plus interest. This policy was mis-sold, I contend,
for the following reason/s.

(choose at least one and possibly more of the following where applicable)

•

I was self-employed and could not have claimed fully on the policy

without ceasing work – a more onerous condition than someone

employed. I was not informed or warned of this.
•

I work for a family company and could not have claimed fully on the

policy without ceasing work – a more onerous condition than someone

employed. I was not informed or warned of this.
•

I was unemployed and could not have claimed on the policy. I was not

informed or warned of this.

•

I was retired in receipt of a pension and could not have claimed on the

policy. I was not informed or warned of this.

•

I was due to retire during the line of the policy and could not have

claimed on the policy. I was not informed or warned of this.

•

I would have been over the age limit during the life of the policy and

could not have claimed on the policy. I was not informed or warned of

this.
•

I was employed at the time but your staff did not inform me that any

change to this could invalidate sections of the policy during its life. I

was not asked about any intended charges or informed or warned of
their effects on the policy.
•

I have had a previous illness or other medical conditions but your staff

did not ask me about my medical history. I was not warned that

previous conditions would be excluded.
•

I told your staff about my medical history but I was not warned this
would invalidate part of the policy.

•

I told your staff about my medical history but I was assured there would

be no problem should I need to claim.

•

Your staff stated or led me to believe that taking out a policy was a precondition

of applying for a loan.

•

Your staff stated or led me to believe that taking out a policy would

improve my chances of a successful application for a loan.

•

Your staff did not offer me a clear choice of the loan with and the loan

without insurance.

•

Your staff did not give me an illustration showing the repayments with

and without insurance until after I signed for the insurance.

•

Your staff dismissed my attempts to cancel the policy during the

cooling-off period.

•

Your staff painted a scenario where I would be reliant on the insurance

which would not have been true for me

•

Your staff subjected me to high pressure sales tactics, (insert if true)

including what might happen to my family if I failed to buy a policy.

•

Your staff ignored me when I told them that I would not need a policy

due to other resources.

•

Your staff did not fully explain the policy and its exclusions to me.

If you bought a policy for a fixed period – perhaps five or seven years –

paying all the premiums at the outset (they may have been added to your
loan) but the loan ended before the set period:

I wish to claim back premiums plus interest because the loan taken out on

(insert date)

was repaid in full (insert date) and therefore it would have been

impossible for me to claim after that date.

If you had asked for a repayment or partial repayment and had been refused
add:
You previously turned down a similar request on (insert date). However, the
Financial Services Authority has now ruled that terms debarring partial
refunds are unfair.
If you then took out another loan and were sold further payment protection

policies add:

I also wish to claim back the premiums and interest on the policy

(insert its

description)

that I was sold by (insert name of seller) on (insert date) as this

meant I had two policies.

I now contend that I was mis-sold this policy. I claim back all the premiums
and interest I have paid in connection with this payment protection insurance
policy plus statutory interest at 8% (or whatever other rate the courts might
order) from the first payment that I made until the date of your settlement of
this claim.
I would like a reply as soon as possible but, at any case, within the eight
weeks allowed for responses to complaints by the Financial Services
Authority.

Yours faithfully

sign here

print name here ............................................