PPI claims – Understanding the process

Know the steps that you need to take in order to make a PPI claim.

16:26 13 February 2013

Several banks and financial institution offer Payment Protection Insuranceto people who want to take out loan. PPI is actually a good financial product. It’s designed to help borrowers repay their loan in case of accident, disability, sickness, or unemployment.

The problem is, a lot of PPI was missold to unsuspecting clients. For example, people who were not even eligible for it; like those who are self-employed, found themselves paying for this insurance.

If you’re one of those people, you are entitled to make a claim.

Financial Services Authority has now mandated the banks and financial institutions to guide their clients in making a claim. This usually starts with clients receiving a letter from the institution. This letter contains the steps needed to take in order to process the claim.

Now, if you’ve followed all the steps outlined in the letter and yet, your claim was denied, the next step is to send a letter to Financial Ombudsman Service. Even if the institution has previously rejected your claim, they’ll be forced by the FOS to review your case.