The Financial Services Authority (FSA), alongside the City Watchdogs and Financial Ombudsman Services (FSA) recently informed the financial institutions to quickly take actions over the way they are handling ppi reclaim of their clients. The FSA sent undercover or mystery shoppers to do an investigation on how banking institutions and stores, including lenders mis-sell the controversial payment protection insurance and found out deficit of proper compliance with regulations between companies caused mis-sold payment protection insurance policies.
It found out that there were a risk that this policies, that was designed to cover loan repayments of the policyholders if they loses their income were being mis-sold to people who can not be capable of getting ppi reclaim on them. In some cases, sales persons were supplying inappropriate advice to the clients which in the first place must not be done. Customers are not made aware about the exclusions and the more important details of the policy were not being discussed to them.
The regulator also identified that some lending companies who are selling the insurance along with mortgages were complying with all the regulations, but difficulties were found among lenders who have been selling it along with other products, just like credit and store cards and other types of loans. The FSA found that 30 financial firms can sell ppi with unsecured credit did not take reasonable steps to make sure who would not be able to make ppi reclaim with them which may give to them only limited cover.
If your financial firm where you got your loan or the FOS agrees that you were mis-sold the insurance, you should start making your ppi reclaim to get back all of the premiums you have paid, with interest added. If in case you were not mis-sold the policy but were treated unfairly when you went to cancel the cover, the FSA rules say that after a person cancels a single premium policy, the firm must give fair ppi reclaim to you. Financial firms should only charge for a reasonable incurred cost and if you feel that the ppi reclaim is not fair, you can still challenge it.
To start your ppi reclaim from a mis-sold payment protection insurance policy, the first thing that you must do is to complain to the financial firm where you took out the insurance policy. You can send them a letter or two asking to analyze your case and also the possible repayment that you can get. You must include in the letter all the reasons why you think you’ve been mis-sold the insurance plan. Other financial firms will reject your request and if thats the case there is a chance that you have been really mis-sold. You could take your complaint to the FOS, and if you have a valid ppi reclaim, the financial firm will pay your compensation to avoid other penalties which they will have to pay if you will pursue your case.