Life sans loans is tough to manage, while the cost of living is soaring. Most of the people rely on Installment loans to tide over when they are running out of money. You may have taken out loans several times to fund your needs during an emergency.
Since the inception of online lending, it has become easier to get money as fast as possible. Borrowing even a handful of cash has become possible with online lending. Though it seems natural to pay off the whole of the debt because of its small amount, most of the people face problems repaying the loan.
Unexpected circumstances like unemployment and sickness may account for such delays. As a result, the cost of the loan continues to add up, imposing a significant threat to financial stability. To avoid this predicament, you will need PPI (Payment Protection Insurance).
PPI is a type of insurance sold alongside a financial product such as a credit card, a short-term loan so that you can make the payment in case you fall sick and lose your job. It sounds interesting to have a PPI as it ensures timely payments in case of unexpected problems. However, most of the people failed to claim it.
PPI was designed to help you make payments when it is difficult to keep afloat in case you fall ill and lose your job. If you have a PPI, you can make claims.
PPI Was Mis-Sold
Although the purpose of PPI was to help the borrower to claim it in case, they fall ill or get unemployed, and policyholders would have never been able to claim the policy. They failed to claim it because they were mis-sold it.
PPI was a type of insurance sold along with mortgages, credit cards, and personal loans. However, some people have mis-sold it along with other financial products such as overdrafts and store credits. Further, the self-employed and the retired people were unable to claim the insurance.
The most common reasons why PPI claims were rejected are you own a financial product that does not accord with the policy. The most common PPI mis-selling checklists include:
- Did you know that the insurance was optional?
- Were you informed of exclusions?
- Did you have clarity that you would pay insurance upfront?
- Were you arguing about buying the insurance?
- Were you aware that you would continue to pay interest on the premium even after the insurance expired?
Can You Claim The PPI?
The deadline to claim the PPI was on or before 29 August 2019. Now the deadline is gone. If you still want to make a claim you will have to meet the following conditions:
- You need to prove that you had an emergency, for instance, a severe illness that kept you from applying for the claim by the due date.
- A bereavement loss that prevented you from doing so before the deadline.
- Any technical glitch that failed in the application.
Such exceptional circumstances can help you have your claim. Make sure that you provide as much information to the provider as possible. If the provider agrees with the documents you submit, the process for your claim can speed up.
- If your complaint is rejected or you are asked more information, take the following steps:
- You can file the complaint to the Financial Ombudsman Service (FOS).
- If you think the amount of compensation is unfair, you should figure out the factors that can affect the amount.
What To Do If You Made The Claim Before The Deadline But it Was Turned Down?
When you put in the application for the claim, your PPI provider will assess your request and may take up to eight weeks. However, you can get the claim within a week from the date you file your claim.
If your PPI provider did not approve your compensation, you have the right to go to FOS. Banks will likely send you a letter even if they did not approve of your compensation before the deadline. Due to the court ruling, people are supposed to get benefits in case they have mis-sold the policy.
If you get a letter from the bank, your compensation is due because it indicates that they have spotted the problem with your policy. You must remember that if both the bank and the FOS turn down your application, you will never get any claim.
How Far Back Can PPI Claims Go?
The FOS will not stop you from going to the court to get the claim as long as it dates back to six years. However, you can go back as far as you like because most of the policies were sold between 1990 and 2010.
You can get a PPI claim even now. If the provider does not approve of your compensation, you can go to FOS. If FOS rejects your application, you will no longer be able to put it in the application.