In recent years there has been a major problem concerning the payment protection insurance industry or PPI. Most customer complaints received by the Financial Ombudsman in 2010 were related to complaints concerning the PPI.
What PPI does is take care of all unpaid debts if a person is ill for a long period of time or actually loses a job.
The problem lies with the fact many people purchased this product even though it was not really suitable for their case, resulting in an invalid claim when they tried to request for a repayment.
Many people were convinced that purchasing PPI was obligatory when acquiring loans or credit cards, when in fact PPI is an option, not a must.
Other people who purchased the PPI product where self-employed or those with a medical condition and this would not cover them if they lost the job or were ill.
Fortunately, this year the PPI has been regulated accordingly by the Financial Service Authority, allowing those that have a doubt as to whether the PPI they have purchased is not right for their case can now claim the cost of the insurance.
The company that sold you the PPI or the Financial Ombudsman Service will deliberate if the policy you purchased was indeed not right for your situation, if this is the case then you should be able to claim back the premiums paid in addition to an interest of eight percent.
The first step to take if you think that you have purchased a PPI without needing it is to cancel the policy, from there you can advance a complaint to the company who originally sold you the PPI policy.
Should you receive a rejection from the firm stating that the PPI was sold for genuine purposes, ignore it for many companies will deny blatant evidence.
In these cases, you should write back asking them for evidence of what they are stating as you are not prepared to take their word for this case.
You will find that when you take your case to the Financial Ombudsman Service the claim will often be upheld in your favor.
Claiming back your PPI and loan insurances can bring in quite a lot of money and you should try and examine this case more closely if it relates to you.
You should start the claims procedure even if you are not sure if you indeed fall under the category of clients that have been sold these policies inappropriately. It is definitely worth a try.
You can do this by looking for a refund company that will check whether your case can claim compensation. If so, the legal department will then work on a strategy to reclaim any money spend on the PPI, this includes interest and commissions.
In most cases these reclaim strategies are successful and you can receive full compensation and the money involved is quite a sum.