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Consumer Law Blog

How do I make a claim?

by Bradley Askew 08 June 2011

The first thing you should do when making a claim for mis-sold PPI is to determine whether or not you have a case for compensation. So if you have ever had a loan, a credit card, a mortgage, or a finance agreement then there is a huge possibility that you may also have a PPI policy. Recent figures estimate that the number of mis-sold PPI policies that have been sold can range as high as 90%, because of these figures there is a strong chance that you may have a claim.

It would be near enough impossible to list every single ground on which a mis-sold PPI claim can be made, listed below are a small number of different scenarios and circumstances which account for the majority of mis-selling claims that are successful:

  • Having a pre-existing medical condition at the time of sale;
  • Not being made aware of the inclusion of PPI until after the sale;
  • Not being informed about restrictions and exclusions in the policy;
  • Not being told that you could shop around for better deals;
  • Not being employed on a full-time permanent basis at the time of the sale;
  • Being sold a policy when you were already covered by other insurance;
  • Not being provided with adequate records or written conditions prior to the sale;
  • Being under 18 or over 65 at the time of the PPI sale;
  • Being misled about the terms or purpose of the policy by the salesman;
  • Being sold a policy which was unsuitable for your needs;
  • Being told that approval for credit was conditional on also purchasing PPI.

These are just a few scenarios, but even they do not apply to you it still may be possible to make a claim if you truly believe that the PPI salesman unfairly dealt with you as well as misled you when selling you PPI.

If you believe that you are the victim of PPI mis-selling, you should be to make an official complaint to the financial services provider that sold you the PPI. If it was sold to you by a broker or financial advisor, then you should make a claim against that person, not against the insurance company which issued the PPI policy.

You should complain in writing, whilst quoting as many policy details as possible in order to ensure that the business can locate its records of the sale. Quote any policy numbers or references, together with the date of the sale, the name of the person who sold the policy to you, and details of the loan or other credit product which the policy covered.

Next, you will need to make sure that you explain in detail, why you feel the policy was mis-sold to you. It may help to begin by stating that you believe that the policy was mis-sold because the business breached the Financial Services Authority (FSA) rules on PPI sales, as stated in the FSA's "Insurance Conduct of Business Standards" (ICOBS), then go on to give specific examples of how you believe the salesperson acted in an unjust and unfair manner.

Every business which engages in any sort of regulated financial activity is required by the FSA to have a complaint handling scheme, you should expect a response to your complaint within about 8 weeks. If you do not receive a response in this time, then you should treat you claim as if it has been rejected and take the matter to the next stage.

Rather than going to your local County Court, you should take the matter to the Financial Ombudsman Service, which is free to use, unlike the County Court where you will have to pay listing fees which depend on the value of your claim.

The Financial Ombudsman Service was set up by the government to handle complaints about the conduct of financial services providers which are regulated by the FSA. The Financial Ombudsman Service is an independent body and it has the power to investigate various complaints and deliver a binding ruling. If the Ombudsman finds that the financial services provider has breached FSA regulations and that your PPI was mis-sold to you, it will order the financial services provider to pay you a full refund. Refusing to comply with an order made by the Financial Ombudsman Service is a breach of FSA regulations which could result in defendant being fined.

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