Payment Protection Insurance, which is more widely known by its abbreviated form, has acquired a notorious reputation, thanks to the PPI scandal. People commonly come across the term on the news or from cold callers stating that they could save you money from the PPI mis-selling. Nonetheless, it is important to clearly understand the meaning of this term.
What is Payment Protection Insurance?
Payment Protection Insurance was a kind of insurance money sold by the loan companies. Royal Bank of Scotland PPI Claim Claim is based on a similar form of insurance. The loan could be of any nature: credit card, unsecured cash, following a similar principle. The purpose of PPI was to ensure that you are able to make payments on the loan even after altered monetary circumstances such as loss of a job, illness, etc. While the intention of PPI may sound only reasonable, a series of mis-sold PPI led to the infamous scandal, court sessions and a million dollars compensation.
Have you received a mis-sold PPI?
If you ever had a loan, credit card or mortgage, then chances are you have received a mis-sold PPI. This is because previously, PPI was sold when you extracted a loan, mortgage, or a financial car deal. The original concept was that PPI would take care of your monthly payments on the mutual credit agreement in the event of any detriment. Mostly, the policies were not properly explained by the sales staff as a result of which, people who were not eligible had been mis-sold PPI.
Commissioned lenders of PPI are more frequently associated with PPI mis-selling. If more than 50% of your PPI commission went to the lender without your prior knowledge, then there is a high chance that you shall owe compensation.
Steps to claim your PPI
The Royal Bank of Scotland PPI Claim Claim avails the following legal steps for a complete PPI refund:
Gather all the necessary documents
Written proofs are crucial if you want a transparent refund of your PPI claim. Written proofs showing you have depended on a policy and are making monthly payments is what you need. Also, before submitting them, make copies of all the necessary documents.
Prepare a letter to the credit card or mortgage lender who had sold you the Payment Protection Insurance
Visit your bank’s website and fill in the questionnaire available. This is a standard service offered by the banks as well as the Financial Ombudsman Service. Along with the letter send all the previously arranged documents that you consider relevant to your PPI seller. Elucidate the reasons on why you consider you have been mis-sold PPI.
Provide your contact details
A complete information about your contact details and anyone else who may have been involved in the mis-selling must be included in the letter.
What happens when your bank is not responding?
You could approach the higher station, i.e, the Financial Ombudsman Service if any one of the following occurs:
Your financial provider does not revert to the letter stating your PPI claim
Your financial provider does not negotiate or offer a settlement due to your disagreement
Your financial provider refutes your claim.
However, it is critical to note that PPI claim is only possible in the cases where people were mis-sold. This is evidently reflected on the policy of the Royal Bank of Scotland PPI Claim where a similar statute is mentioned.
Although the process of claiming PPI could be hefty, there are millions of claim companies wanting to relieve you from the unnecessary burden. While you are spared from the countless paperwork, this service could incur lots of money, at the end of which your PPI claim may appear futile.