Reclaiming PPI charges
Many people attempt to streamline monthly repayments by setting up automatic bill payments within their online bank accounts. However, when automatic loan repayments are attached to a bank account and hidden fees or surcharges are deducted from that account it can be difficult to have those charges reversed. This is especially true for payment protection insurance (PPI) policies, which are some of the most commonly mis-sold insurance policies in the United Kingdom. In fact, there were nearly 25,000 payment protection insurance claims filed during the final three months of 2009 alone.
The Prevalence of PPI Refunds
Payment protection refunds have become more frequent during the past six years after an investigation by the Citizens Advice Bureau (CAB) revealed widespread PPI mis-selling being conducted by large financial institutions and private lenders alike. As a result, several prominent banks were fined millions of pounds and more than 100,000 PPI policyholders have been successful in reclaiming PPI charges. As more attorneys take interest in pursuing PPI claims cases, and consumers become knowledgeable about PPI mis-selling, the amount of people reclaiming PPI charges each year will continue to increase until PPI mis-selling becomes nearly taboo.
Reclaiming PPI Charges from a Bank
Reclaiming PPI charges from the same bank that issued a loan can be especially difficult, particularly without the help of a PPI claim company. By contracting the assistance of an attorney that has experience in reclaiming PPI charges you can minimize effort and reduce the possibility of damaging your credit score by defaulting on a loan. Ultimately, the decision to refund PPI charges will be left up to the courts and the necessary authorities, regardless of the previous reputation of the lender or bank. Contrary to popular belief, ordinary citizens do win lawsuits against banks and financiers, especially those pertaining to PPI policies sold during the past six years.
The Challenges of Reclaiming PPI Charges
The main challenges associated with reclaiming PPI charges are:
- Finding a professional PPI claim company that is knowledgeable, offers free consultations, and will work on a "no-win, no fee" basis,
- Recalling loan details so that a PPI claims specialist can verify that you are knowledgeable or inadequately informed about a PPI policy or its terms and conditions.
- The willingness to devote a small amount of time working in conjunction with PPI claims professionals to receive full and due compensation.
Aside from these easily surmountable challenges, you'll also need to have the patience to wait 2 to 6 weeks for the PPI refund, which typically ranges from £2000 to £3000 in an average claims case. However, since even the small percentage of policyholders that receive assistance from a PPI company have to wait several weeks for slight repayment assistance, it would be much more sensible to reclaim the funds spent on the insurance policy from the lender, than to pursue benefits from the insurance company.
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