Claiming Back PPI: A Guide

Getting mis-sold PPI back from the banks seems like a pretty big task. You know they’re going to argue their case as best they can to stop you getting it, and many people seem to think the process is more trouble than it’s worth. But is it?

Am I eligible?

If you know that you’ve taken out PPI on a loan or credit card, and you felt pressured to buy it, didn’t know you were buying it or it wasn’t suitable, then you may well be due compensation. A great number of people however, do not know that they’re entitled to a refund, so it’s important to check your finances.

How much could I claim?

With average PPI repayments being between £2000 and £3000, it’s definitely worthwhile trying to get back what you deserve. Many people have been successful in reclaiming more than ten times that amount. Just imagine what a windfall could get you – a holiday, a new car, some home improvements perhaps? In this time of recession who has money to spare? Not many of us do.

The amount you get back depends on a number of factors, but specialists aim to reclaim all of the PPI charges, plus interest, which is generally at a rate of 8% per year.

How do I get it back?

The process of making a claim can be as difficult or as easy as you want to make it. You could try going head to head with the bank, but this is both arduous and time consuming. The bank doesn’t want to give you the money back. I’d recommend using a specialist company such as PPI Return to act on your behalf.

This is the most popular route to take – you can often choose a ‘no win no fee’ process, which means that there is no financial risk to you. Trying to compete with a bank could prove expensive if you fail in your claim, and with ‘no win no fee’ you have the peace of mind that you’re either going to be in the same position as when you started the claim, or much better off. Fees are generally very reasonable too.

How long does the process take?

While this can vary, most lenders come to an agreement in 6-8 weeks. It can take longer if the case has to go to the Financial Ombudsman Service, but the great thing about using a specialist PPI solicitor is that they can take care of nearly everything. You can start the claim and then all you have to do is wait.

Am I guaranteed success?

No company can guarantee that your claim will be successful, but you should keep in mind that if you use a ‘no win no fee’ solicitor, they will not proceed with your claim if they do not think it has a good chance of success. It would not be worthwhile for them to work on a case they do not think will end in a pay-out.

So if you think you might have a case or are unsure how to proceed, getting in touch with a PPI specialist could be a great decision.

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