Claim Back Bank Charges
Bank charges such as overdraft fees and late fees that have been directly linked with mis-sold payment protection plans are often being refunded by lenders as part of a compensation package after consumers win a PPI claim. Payment protection, also known as payment protection insurance, is a type of insurance that covers its policyholders by providing financial assistance for the policyholder in the event they become unemployed due to loss of a job or certain illnesses that are covered. Considering that there are numerous exclusions and most of the policies were mis-sold, many United Kingdom citizens have been filing payment protection claims so they can get a refund. If all the known PPI policyholders that have been mis sold the cover can claim back bank charges, 2011 will be one of the worst years for banks. With bank charges being a large portion of the money banks make, some bank could find themselves in the negative if PPI policyholders can claim back bank charges.
Who Can Claim Back Bank Charges?
In order to be eligible to claim back bank charges, it is imperative to prove that additional bank charges relating to payment protection were assessed which would result in mis-sold payment protection. Ways in which it can be proven that PPI was the sold include:
- Lenders forcing buyers into payment protection by including it in the loan that they are applying for.
- The terms, conditions and requirements for eligibility not being clearly explained to the buyer.
- The cost of payment protection not being discussed in relation to how much it would increase payments over the course of the policy.
- Buyers being told that if they get payment protection the chances of them getting the loan approved would increase.
If any of the above information pertains to you then you can file a claim against the lender to get a refund. Keep in mind that 85% of the time though this claim will get denied and you would need to file an appeal with the FOS (Financial Ombudsman Service).With so many citizens trying to claim back bank charges, the UK Financial Ombudsman Service has had their hands full with PPI claims.
Is There Any Help?
The UK has numerous PPI claims companies that can help when trying to reclaim bank charges. These companies have experts on hand that have helped to resolve countless PPI claims, enabling policyholders to win back bank charges and other fees associated with payment protection. These companies were manifested with the sole intention of relieving financial stresses placed upon borrowers by lenders who mis-sold payment protection. Many of these companies work on a no win no pay system and will actually start on your claim the same day. It is not unusual to have your claim resolved within just two months. The best companies however are the ones that are registered with the Ministry of Justice. The Ministry of Justice is in charge of claims companies in order to ensure that they have completed the current criteria to represent consumers in filing PPI claims. With the increase in claim back bank charges 2011, this seems to be another year in which a record will be set.
blog comments powered by