July 23rd, 2012
Consumer group Which? recently announced their success in having banks and PPI providers allow customers to reclaim PPI repayments directly from the bank’s or provider’s establishments through a correspondence letter. Efforts to simplify the PPI claims process is further accelerated by the Financial Services Authority (FSA) calling on all banks to contact customers potentially mis sold PPI as there are 10.8 million UK citizens who have not yet made their claims.
Customers initially purchased PPI as per the advice of their financial advisers. Commission-based financial advisers, such as insurance brokers, bank representatives and the like, usually mislead customers to purchase more insurances they don’t actually need. In the case of PPI, customers were ineligible for the insurance’s requirements. PPI requires customers to be healthy and employed upon purchase and for a set period of time before they can receive their benefits.
The simplified PPI claims process was not as simple as it was in the previous years. PPI claims were instantly rejected by banks. The complaints from customers urged the FSA to establish new claims guidelines to help customers. Banks legally challenged the guidelines in 2010, which they conceded in 2011 as court favor was won by the FSA. The new claism guidelines, added with the success of Which? in their efforts to make a new simplified claiming process, ensures that all UK citizens will earn their rightful compensation.
Nowadays, it might be easier to make a claim, but experts warn that banks might take advantage of the situation. Banks might not consider all legal details of the claim and might only provide a lump-sum repayment for customers. It is highly advised that customers visit www.ppiclaimsco.org.uk to help them make a better claim that will guarantee they will receive all the repayments they deserve.