This year, the Financial Services Authority expects from four to twelve million bank customers to receive letters informing them they may have been mis-sold PPI policies and are entitled to file a complaint. The FSA first issued the new guidelines in December 2010 but the implementation was delayed when the British Bankers’ Association launched a high court challenge against them. In April 2011, however, the high court ruled against them. According to the new guidelines, banks must now discuss the key features of a PPI policy with customers instead of assuming that they would read the policy’s documentation, and make it clear to them that coverage is optional. These new rules are also applicable, retroactively, to people who already have a PPI policy, thus the letters of notice.
If you have already received one of these letters, then you know what to do in case you want to file a claim for compensation. Financial experts advise that you look over your PPI policy carefully and, if you feel that you have been unfairly treated, you should immediately respond to the letter to start the process of putting in a claim. It is important to remember, however, that just because you have not received a letter does not mean that you are not entitled to a refund. The banks are only required to send letters to clients who have been systematically ‘mis-sold’ PPI policies and there are many individuals who may not have been informed that they can ask for a refund.
If you have not received a letter but feel that you deserve a refund after carefully looking over your credit card and loan receipts, then you should contact a PPI claims company. These companies have extensive experience in dealing with complicated cases and can examine the relevant documentation to see if you can file a claim. They can even help you file a claim if you are not sure how to do it. They will even bring your case to the Financial Ombudsman if it is required. Although you will have to pay them a certain amount of your award as their fee if your claim is successful, your chances of winning a refund are greater.