Claim what you are due
PAYMENT protection insurance (PPI) remains the most complained about product so far this financial year, according to new figures from the Financial Ombudsman Service. While complaints to the independent arbitrator dipped between April and June, these were dominated by claims of PPI mis-selling, with this much-maligned cover accounting for 56 per cent of new gripes.
The next most complained about products were current accounts and credit cards, but each generated just 6 per cent of the total.
During the same three months, 69 per cent of PPI complaints were upheld in the consumer’s favour, compared with 50 per cent across all financial products.
The number of new PPI cases brought to the Ombudsman has dropped significantly on the same period last year, but there is still a long way to go. Complaints about PPI continue to dwarf other gripes due to the widespread PPI mis-selling scandal over the past decade.
Millions of people were affected, having been sold cover they did not necessarily want, or need, when taking out loans, store cards or credit cards.
For example, PPI was often sold to people who were ineligible for cover because they had a medical condition or were self-employed.
Last year, banks were ordered to offer compensation for routinely mis-selling PPI, and have already paid out about £3.5 billion to customers. However, about £9 billion of compensation is still due. Many people have been hounded by texts and phone calls from companies claiming to be able to win back compensation for mis-sold PPI.
However, on no account should you reply to these unsolicited messages or calls, as they are likely to be from unscrupulous companies trying to get hold of your personal details to pass on to claims-management firms.
These firms, which remain poorly regulated, will take a hefty cut of any compensation of as much as 25 per cent, and sometimes also an upfront fee. Crucially, if you have been mis-sold PPI, you do not need to pay anyone to help you reclaim it, as you can do this yourself simply and for free.
MoneySavingExpert.com has joined up with Which? to campaign on DIY reclaiming. These organisations are also calling for better regulation of the claims industry.
“PPI reclaiming is big money for many and so people are naturally intimidated by the process,” says Martin Lewis from MoneySavingExpert.com. “Sadly, many unnecessarily pay thousands of pounds in claims-management fees.”
You can download a template letter to start your claim at Moneysavingexpert.com/ ppi or Which.co.uk/ppi.
Richard Lloyd from Which? adds: “We are starting to see progress with banks taking action to make it easier for their customers to get back the money they are owed, but there is still much more to be done.” If you get a rejection from your bank, the next step is to take your case to the Financial Ombudsman; you can fill in a form for free at Financial-ombudsman.org. uk which will assess whether or not you were mis-sold.
While this may take time, there is a high chance of success.