We all have heard how over the past couple of decades banks and mortgage companies have been mis-selling PPI for those who have taken out a loan, a mortgage or a fee transacted from their credit cards. PPI was mis-sold and the courts in the UK have demanded banks pay it back to anyone who may have taken out a loan and been forced to pay payment protection insurance.
So, where does one start if you think you may have had a loan many years ago, and you just have not kept any of the statements to hand? If you do not have any of your old paperwork, don’t worry as you may not necessarily need it anyway. You can phone your bank or lending company and request a copy of the agreement you had with them at the time. When the bank or lending company discovers the whereabouts of your paperwork, they must also include a copy of the terms and conditions that were available to you at the time of taking out the loan.
Some banks, building societies or lenders can demand a £1 fee up front to make this search. Ask yourself at the time you took out PPI, were you told by the lender that is was compulsory? If the answer is yes, then you have a clear cut claim for recompense.
If the banks did not make it clear it was optional then once again you must press on and reclaim. One of the best starts to your PPI claim is fill out a questionnaire and send it to the Financial Ombudsman, your bank or lender and one copy to yourself. Make sure you include the original paperwork you received from the bank following your request.
A copy of the questionnaire can be found here. If your loan was taken out before January 2005, and it was with an independent bank or lender not regulated by the FSA, then you cannot pursue the claim via the Financial Ombudsman. It is recommended you use a claims handler if this is the case.
Remember, all major, well known high street banks are regulated by the FSA, so if your loan was with a well known, household bank then continue your claim via the Financial Ombudsman. It is only recommended that you use a reclaiming company if all other channels fail. This way you get to keep around 30 percent of the claim fee to yourself.