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Frequently Asked Questions
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Here are some common questions and answers
Q. What is PPI?
A. Anyone who's got or had a mortgage, personal loan, secured loan, credit card, store card or catalogue credit may have Payment Protection Insurance (PPI). PPI is a financial product designed by the “Lender” to cover your cost of loan / repayment in the event that you are unable to work due to sickness or have become unemployed.
As lending money became “cheap” with interest rates becoming increasingly competitive the banks had to look for new ways to increase their profit. By selling PPI alongside loans / card repayments they found a very lucrative way of making up the short fall for lending money at the “cheaper “interest rates.
As the PPI was amalgamated to the loan, the banks could earn interest on this as well.
Q. What is PPI mis-selling?
A. PPI became very lucrative for the lenders. The lenders would then try to sell PPI with every financial product they could regardless whether the customer could ever use the insurance. This became so wide spread that the customer often did not even know they had taken out PPI.
Q. Who can Claim?
A. You may have been mis-sold if you fit into one or more of the following categories:
- Are / were you self-employed, unemployed, redundant or retired?
- Have you had medical problems in the past?
- Has your provider already been fined for mis-selling?
- Were you sold a ‘single premium’ loan policy?
- Did you not know you had taken out PPI or told that PPI was compulsory?
- If you did take a PPI policy did your lender forget to advise you that you could take alternative PPI cover elsewhere?
Q. How long will the claim take?
A. Each claim varies dependent on the bank / Lender involved. The typical claim takes around two - three months to complete.
Q. Can I claim for a closed accounts / Loans?
A. Yes you can claim for closed accounts / loans older than 6 years as long as you have the documentation.
Q. Can I make the claim myself?
A. Yes you can make the claim yourself if you have the time, the confidence and funds to meet the cost of court action if required. We are here to provided a service which does all the work for you pays all fees needed upfront and does not charge you anything unless we make a successful claim.
Q. Is your company regulated?
A. From the 6th April 2007 all claims companies will need to be registered under the claims management regulation (The Compensation Act 2006) via the department of constitutional affairs, visit www.claimsregulation.gov.uk for more information.
Q. How do I know my information is safe with your company?
A. ABC is a registered data controller with an entry on the public register of data controllers which is maintained by the ICO, we take data protection very seriously. Please take a look at the Terms and Conditions of the site for the privacy statement.
Q. How much does your service cost?
A. We will only take a payment when PPI payments have been refunded. The fee that will be taken is 25% including Vat.
Q. What happens next?
A. We will send you two letters to sign and send back to us in pre-paid envelopes. One letter will be an authorisation notification to allow us to contact your bank / lender. The second letter is a questionnaire request which will cover how and why you were sold PPI.
Q. What will I need to provide you with?
A. All we need to get started are the representation agreement and the questionnaire.
Q. Can I claim if the PPI is more than 6 years old?
A. Yes, but only if you have the paperwork for the PPI policy.
Q. Will the bank / lender ring or contact me?
A. No, they shouldn't do, as you will have given us authority to act on your behalf. If they do send you any letters concerning bank charges then please forward them to us so we can use this information as evidence.
Q. Will this action affect my credit rating?
A. No. This process is completely legal and there is no way it can have a negative effect on your credit rating.
Q. Do you have a complaints procedure?
A. Yes we do. We are regulated by the Ministry of Justice CRM2772 and have set guidelines that we are required to follow. If you are unhappy then please click here for further information.
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