What Does PPI Mean to you?
PPI or Payment Protection Insurance has been at the fore of a lot of media attention in the last two years. Since the Judicial Review in April 2011, banks have been forced to deal with consumers PPI claims in bulk. Setting aside nearly £9 billion banks have suffered major losses, yet a lot of PPI claims are still not being upheld and payments are often delayed. Many people don’t even know if they paid PPI or what PPI is.
How long does it take to make a claim?
PPI or Payment Protection Insurance has been at the fore of media attention for just over 12 months now and consumers are still struggling to realise if they have been mis sold or not. PPI is sold alongside credit agreements such as, car finance,credit cards,loans,mortgages and any other form of credit. It is designed to cover a persons credit repayments in the event of injury, redundancy or sickness. Now this seems like a very useful product to have, and yes it is when sold correctly.
However, banks have massively mis sold PPI to consumers over the last 20 years. Often informing customers that PPI was compulsory, when infact it is optional. Customers were also informed that PPI would have a baring on the outcome of a credit application, when infact it would not. Also banks would not explain the full premium amounts, terms and conditions or when you would be covered for if you were to ever make a claim.
Explaining the Terms and Conditions is a very integral part of selling the PPI to any customers, as they should know at any point what they would or would not be covered for if they were to make a claim. These are all reasons why PPI has been mis sold to consumers, but the big question is, how long does it take to make a claim?. Banks after the Judicial Review in April 2011, were given 16 weeks to deal with any PPI complaint made. This was then reduced to 12 weeks, and is now back down to 8 weeks again.
However, once banks have given you their final decision, they are taking just as much time to pay out if your claim has been successful. Until there is a set procedure in place to make sure that payments are made days after receiving the final response, there will be no way of keeping track of when your case will be paid out, you just have to hope it will be sooner rather than later.