Payment Protection Insurance, also known as PPI, is an insurance product designed to protect you and your family in the event you are unable to make a payment on a debt or loan because of a crisis such a death, illness or unemployment.
The product was designed for particular individuals at a certain period of time in mind and was very profitable for banks. After some time passed, it was discovered that many of the banks in the United Kingdom were not selling the policies fairly, the policies were being mis sold.
Major publications and consumers have brought this scandal to the forefront and has been in the limelight for over a decade. For years many of the UK’s banks have been fined and required to set aside money to pay back claims with regard to this scandal. Recently a deadline has been set to try and draw a line for the consumers who are still out there that have not filed claims for their policy.
It has been rumored that an awareness campaign is set to debut this summer to bring awareness to UK consumers to look into their financial situation to see if they could be effected.
They want everyone who has been effected to come forward but are finding that the hardest part is that since it was mis sold, people are not even aware that they are victims to the scam. Once people have been educated and aware of the situation at hand, it is best to file claims to retrieve the PPI that was mis sold.
What you need to know
PPI Claim Companies, like https://www.canaryclaims.co.uk, are around to help with your PPI claims process. They are able to help from start to finish. From identifying what information needs to be collected to what It is best to utilize these firms because they know what they are doing and are familiar with the procedures in place to make your claim. The basic beginning step is to identify your debts and if you held a PPI policy.
You then have to identify if you were mis sold, this means your policy was either a.) sold without your knowledge b.) sold as if it were mandatory or necessary or c.) sold to the wrong type of individual who wouldn’t even be able to make a claim (an example of this would be age, employment, and preexisting medical conditions). Basically, if you were not clear as to what you were sold or was sold something you weren’t even eligible for, than you need to reclaim your PPI money.
Timebar To File
By using a PPI Claim Company, they will be able to steer you in the right direction to know if you are in the proper timeframe to file. The first, and most important, timeframe you need to consider is that all claims must be submitted by August 29, 2019. This deadline has changed but this is what the deadline is at this moment in time.
Just because your loan or debt is no longer active does not mean you cannot file a claim. You are still able to file claims on debts that are paid in full and therefore inactive. It is just important that you have all of the appropriate paperwork involved. It will make the process with the lending agent easier. This is another instance where using a PPI Claim Company is to your advantage, they will know how to win your case and will not steer you wrong.
Another important deadline that everyone references in the PPI claim situation is 6 years. This number plays a vital role in your PPI reclaim. Primarily, all financial institutions are required to keep documentation of their accounts for 6 years. This is what they are required to do, so if they do not have documentation of your account than they are not meeting regulatory standards. If they do not have your records than they may be asked to estimate the costs involved.
Please note that the 6 year mark is from when your debt has been closed or is considered inactive. It does not start from when the account opens. For example. If you opened a loan in 2000 but finished paying it off in 2010, the 6 year time frame would begin in 2010. The bank would be required to keep paperwork through 2016.
After that, they have no obligation to keep track of your information. Some banks follow the rules exactly and get rid of records right at the 6 year mark. However, there are banks that do keep records for longer.
To bring things full circle, even if your account is inactive and even if your account has been inactive for longer than 6 years, it does not mean you to not have the means to file a claim.
As long as you have the proper paperwork and information to provide to the bank that you had the policy and that it was mis sold they are required to investigate your case. You can claim back many years beyond the six year time limit if you can prove a link between the underwriter of the policy and the lender or broker that sold it to you.
Essentially, PPI claims are a serious matter that every household should look in to. The more information you have on your policy the more likely you are to reclaim your money. The best case scenario for a consumer is to have the paperwork that identifies the policy and also some proof that it was missold as described previously in this article.
Financial Institutions are required to keep the information for 6 years once the policy was closed or inactive. So if you are a client whose policy was recent, than you may be in luck and be able to get information straight from the lender. If the account is closed it does not mean you cannot file a claim. You will just need to provide further detail, your PPI claim company can assist with this process.