Money Saving Tips

Reclaim your PPI premiums Payment protection insurance, or PPI, is the insurance that is sold alongside loans, ie.,credit cards, store cards, debt products like car finance agreements, which are supposed to cover the repayments if you cannot make them, because of an accident or illness or if you are made redundant. Currently, there are 20m (PPI) policies existing in the UK. Out of that, there is a fair chance of two million people may have been mis-sold policies since 2003 and they could reclaim their money back. Problems with PPI : firstly, PPI bought from a lender can be poor value for money. Secondly, PPI is often sold to people that can never claim on it, due to tightly drawn terms. Most policies don't pay if you are: self-employed, retired, or stop work because of a medical condition (that existed before you took the insurance), or for stress or back problems. Some cases PPI is sold as ‘single premium’ which means that people end up paying interest on the cost of the insurance. The Financial Services Authority (FSA) has been taking steps to act against firms found to have mis-sold PPI and the Competition Commission has recommended that PPI should not be sold at the same time as the accompanying credit product. Reclaiming on any PPI Policy: If you feel you have been mis sold (had bought your insurance before January 2005), it is likely that you have been covered by a previous regime of rules, ie. the Financial Ombudsman Service will be able to consider your claim for compensation. You should get back all the premiums you have paid, with interest added at 8% - the same figure a court would award, if the firm, or the Financial Ombudsman Service, agree that you were mis-sold the insurance. Also, the FSA rules say that when a customer cancels a single premium policy, the firm should give a 'fair' refund. How do you claim: When claiming a mis sold insurance first You need to complain to the firm, by writing your grievances. If you are not offered a fair refund from your first letter, write again demanding that the matter be resolved within 14 days. If you do not succeed, then take your complaint to the Financial Ombudsman Service. Good things about PPI: If you are concerned about losing your job or falling ill then buying a cheap, catch-free policy is good for you. But do not buy it from the company lending you the money, they might over-price the policy. Instead, use an independent income protection comparison service.