Guide to Learning More about Banks and PPI Claims

| September 10, 2014 | 0 Comments

Guide to Learning More about Banks and PPI Claims

Payment Protection Insurance is sold alongside bank instruments like credit cards, loans and finance agreements which are made as a safeguard against defaults in payments.

ppl-claim

Policy Premiums

There are some policies that need the customers to pay regular installment for them. This is based on the amount of loan taken or the outstanding mortgage. Single premium policies are those that are attached to personal loans or finance agreements and the customer has made a onetime payment for the policy.

Banks and PPI

For several years, banks have been insisting upon customers to purchase PPIs alongside their loans, which in effect act as a collateral security for the loans taken, credit card payments to be made or outstanding debts. However, the salesmen would not enlighten the customers on their rights and methods of claims and would insist that the PPIs be taken in order for the bank to process their requests. Over the years, customers lost plenty of money in unclaimed PPIs while banks were literally smiling all the way to their vaults.

Worthless Accounts

Some customers have found their PPI to be useless, as they are unable to claim the benefits of it. This is mainly because the customers are either self employed or retired at the time of taking the policy. The onus is now on the banks to trawl their accounts and list out those customers to whom they had sold the PPIs without giving them the correct information.

 Problems with PPI

There are many customers who make claims on their PPIs only to see them turned down by the concerned banks or insurance companies. This is done on the basis of the exclusion policy placed in small prints in the policy.

The majority of customers complain on having the policy mis-sold to them, either because they were not accurately told about the policy that they had to invest in, or that they did not really need to buy it.

Another form of customer dissatisfaction arises from disputes about refunds of premiums. This commonly occurs when the customer has paid a single premium amount for the policy, or when the loan is closed before completion of the term of the loan. The refund may be of a negligible amount, which brings on the customer dissatisfaction. You can visit www.ppiclaimscalculator.org.uk for more details on calculating the amount of refund due to you.

Statutory Compensation

Following complaints by a large number of customers and watchdog organizations, the High Court has given the ruling that the banks have to compensate those customers to whom the PPIs were mis-sold. The statutory compensation is set at an interest rate of 8% on the money refunded.

PPI Ombudsman

The concerned banks have been directed by the High Court to redress the customer’s grievances, and honor their claims. In case the settlement made by the banks is not satisfactory, the customers have the choice of appealing to the watchdog agency, the Financial Ombudsman. The Ombudsman then works to sort out the individual disputes and does not investigate the general concerns of the customers. There could be a case to case variation based on the particular circumstances under which the PPI was taken by the customer.

Banks are under instruction from the court to settle the customer’s claims and ensure total customer satisfaction regarding the Personal Protection Insurance policies taken by them.

Author Box:

Denis Garrity makes you understand about the close liaison that exists between banks and PPIs. He also advises checking with www.ppiclaimscalculator.org.uk for a precise calculation of refunds or claim amounts.

 

Category: Finance

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