Do You Think You Were Mis Sold Ppi ?

Payment protection insurance is commonly referred to as PPI. This type of insurance was sold along with finance agreements, mortgages, loans, just about anything that required a loan over a period of time. The idea behind the insurance was to cover the loan and their re payments should something happen to you that would result in you not being able to keep up with the payments. However it has come to light that there is the potential that hundreds of millions of policies were mis sold, the reason that this has come to the attention of the Financial services authority is because a number of claims have been made and the policy has not been paid out because the insurance was incorrect for the product, different periods of the loan cover or not covering loss of work.

There has since been a ruling, however, which is now accepted throughout the insurance industry, that states that banks are now required to go through their records to find any mis sold PPI policies. Once these are found, banks are required to let policyholders know that they might possibly be able to get their paid premiums back. This is the essence of PPI claims.

As stated above, it is now the responsibility of the banks to start identifying which of their customers were mis sold PPI. The rules of the Financial Services Authority, or FSA, state that banks by law have to contact customers when they observe a systemic mishandling of how policies were sold. For example, if the literature for marketing that was sold in concert with policies was not in compliance with the guidelines of the FSA, customers must be informed. Banks will have to send these customers letters that explain in detail how their premiums may be refunded.

As a consumer, if you receive a letter from your local bank, this indicates that the bank involved with your PPI policy was able to find a mishandling with the sale of your policy. If you receive such a letter, you should follow any instructions included in the letter from your bank so you will be able to pursue a claim. Although there is no guarantee that there was a mis-sale of the policy, the chances are very high that this is what occurred, and as a result, you will be due compensation. On the other hand, if you do not receive a letter, this by itself does not mean that you will not be able to file a claim for PPI that was mis sold. Rather, it simply means that if a PPI missale occurred, it did not occur due to a systemic failure by your bank.

In fact, it is still possible that there was a missale of your policy due to either an error of commission or an error of omission by someone in the staff responsible for the sale of your policy. If you have already filed a claim to your bank or company, then you should wait for a few weeks to obtain the results of the claim. If your claim is accepted, then you will receive some or all of your premiums back. However, if you receive a rejection of your claim, then you will still have the option of contacting the FOS, or Financial Ombudsman Service.

It is possible that your bank may have rejected a claim in the past but will be forced to revisit it now due to the ruling from the High Court.