Your guide to reclaiming PPI

If you’ve been mis-sold PPI and want to make a claim, use this article as your guide.

10:14 20 August 2013

Ever since PPI scandal made it to the headlines, a lot of people have been coming forward to ask for a refund.

PPI (Payment Protection Insurance) is a financial product that aims to cover up to 12 monthly payments of your loan should you suddenly get sick or find yourself unemployed.

However, it was mis-sold to many people; some did not even know that they paid for it. If you’re one of them, here’s how you can file a claim.

• First, ensure that you were mis-sold PPI and that you are eligible for a refund. You can file a claim if (1) you were told that PPI is mandatory to get your loan approved (2) you were not informed that you had the option to get PPI elsewhere (3) if you were not employed when you applied for loan or if you’re self-employed.

 

• Next step is to gather all the necessary documents to process your claim. Send this together with a letter detailing your claim to the bank or lending institution where you borrowed money. Ensure that you keep a copy of all the documents that you send.

 

• Should your claim gets rejected, your next step is to write to the Ombudsman who will decide if you are eligible for a refund or not.