Eight out of 10 cases taken on by the Financial Ombudsman is now about PPI. If you think you have been mis-sold, there are steps you can take for insuring you reclaim your lost money and compensation.
Recent figures published by the Financial Ombudsman found that they had received a total of 132,152 new complaints about PPI between April and June 2013.
This marked a significant increase from last year which recorded 2,500 complaints a week, as opposed to 10,165 a week this financial year.
PPI is a type of insurance sold alongside credit cards, mortgages and other loans, as a way to enable customers to repay their loan payments, in the event of an accident, sickness or redundancy.
Although PPI insurance itself isn't flawed, it has been mis-sold by companies who have failed to inform the customers of the exclusions detailed under the policy. Exclusions could include someone who had a pre-existing medical condition, or someone who was fired from a job or was self-employed.
If you have a pre-existing medical condition for example, and were sold PPI insurance that excluded pre-existing medical conditions under the policy sold - then the insurance was clearly inappropriate for your needs and your are entitiled to claim your money back.
Banks are among the most guilty for mis-selling PPI, and it is estimated they face a compensation bill of £13 billion and rising.
= Reasons to complain about PPI =
- If the insurance wasn't made clear to you, and you weren't told that that the policy was optional
- If the adviser didn't inform you of the exclusions under the policy, for example - that they wouldn't cover you for a pre-existing medical condition, or if you were self-employed.
- If the adviser didn't make it clear that the insurance cost would be added as an addition to the loan, and interest would accumulate on top of this.
- If the adviser was pushy when selling the product or implied that you wouldn't qualify for the product unless you took out a PPI policy
= How to complain =
The best way to reclaim mis-sold PPI is to first complain to the business that sold you the PPI. They should accept your complaint and deal with it.
If they reject your complaint however, the Financial Ombudsman Service offer free help . You can call them on 0300 123 6222 or 0800 121 6222.
The FOS have a fact sheet detailing the most common issues when dealing with PPI, for customers to refer to.
Got a question about personal finance? Put a question to our panel of experts by emailing firstname.lastname@example.org