These days, choosing a financial product or service is a lot easier, especially with the introduction of useful comparison sites such as MoneySupermarket.com, which make it quick and easy to compare prices and details.
Being mis-sold payment-protection insurance doesn't happen quite as often today as the way we apply for financial products is different. But for those who have been mis-sold in the past, getting compensation is now an easier process.
Thankfully, financial institutions have changed their procedures to help customers making claims, mainly due to a number of claims firms that were misleading people about the process. Over £1.9 billion was repaid to customers last year, with more claims waiting to be settled.
Banks have been trying to make the claims process easier to try to prevent consumers being duped by rogue firms. These firms are making their profits from people by taking a large percentage of their compensation.
Of course, there are many reputable claims companies who are doing a professional job and helping victims get the compensation they deserve. But it is important to make sure you choose a credible firm to help you with the process, if that is what you wish to do.
Sadly, there are still a number of consumers who are unsure as to whether they even have a claim at all. Many claims experts encourage anyone who isn't sure to speak to a specialist and discuss their case one to one. If your claims company is an honest one they should tell you straight away whether you can make a successful claim before you sign up.
Do You Have a Claim?
A typical PPI claim payout is currently around £3000 and three out of four claims are successful. But if you're not sure whether you have a valid claim it might help to consider the following questions.
When you were applying for any kind of credit agreement, such as a mortgage, loan or credit card, were you told that PPI was mandatory? Or were you told that taking out the insurance would make your application more likely to be successful?
If you were persuaded to take out PPI, did you find that the policy was actually of no use to you because you were self-employed or you were outside of the valid age range, for example?
Perhaps you found that you were paying for insurance without even being asked if you wanted or needed it? If you can answer yes to any of these questions then you definitely have a reason to claim.
Making a claim is important so if you do wish to move forward with it but are worried about using a claims firm you could try contacting your lender directly instead. If there is no response after a few weeks go to the Financial Ombudsman Service, which will be able to advise you on your next move.