Wednesday, 25 April 2012

Reclaim Your PPI For Free

Every time I see an advert on TV, Facebook, in the paper or spam in my inbox about reclaiming my PPI I get annoyed. These companys promise to reclaim your PPI payments but they don't mention that they will charge you for this privilege. 

Yet there is a FREE and easy way to reclaim your PPI payments by doing it yourself using free templates provided by Martin Lewis at Moneysavingexpert

It is so easy to do, I don't know why more people don't do it, which is the reason for my post. A few years ago, using the advice and templates from Moneysavingexpert I managed to reclaim over £800 in unfair bank charges. All by myself, and without having to pay anyone to do it for me. 

If you get a firm to do it for you they will charge you 30% of whatever you recover. This means if you manage to reclaim £3,000 they will charge you £900 in fees!!!

But what is PPI and why are people reclaiming it?

PPI stands for Payment Protection Insurance and is designed to cover your loan or credit card repayments for a year in the event of an accident, sickness or unemployment or sometimes just accident and sickness. Yet, whilst it sounds like a good idea in theory, it has been widely mis-sold with thousands of loans, leaving many paying hundreds for potentially wothless cover. The insurance cost often dwarves the interest, so many believe its the most overpriced financial product around. Sales staff, dressed as advisers, were hugely encouraged to sell PPI whenever possible. Many were under so much pressure they strayed far from the truth. 

How do I find claim if I believe I was mis-sold PPI? 

If you don't have your policy details and you don't know whether you paid PPI,  then you can write to your lender asking for a copy of your policy (this might cost £1 but Moneysavingexpert provides a template letter to help you with this).

Once you've checked your policy your next step is to check and see if you were charged for PPI and whether you were mis-sold it. (See Moneysavingexpert for the mis-selling checklist to see if your eligible)

The next step is to write a letter to your lender and ask for a refund. This is easily done now that the banks have given up fighting in court and have agreed to repay those who were mis-sold PPI. All you need to do is fill in and sign a copy of the questionnaire which can be found on the Moneysavingexpert website. Include copies of any paperwork that backs up your case, and send the form by recorded delivery to your lender (keep a copy yourself). 

To make it even easier, Moneysavingexpert have written a guide to take you through it step by step. It's written in Microsoft Word so you can easily cut and paste sections or have it next to you as you fill in the form. If you're still having problems, then you can call the Ombudsman on 0800 0234 567 (0300 1239 123 from a mobile) for more help.

The most important thing to understand and remember is; don't be put off if you're rejected. You may also need to go to the Ombudsman later, but you need to have written to the lender first. If you still haven't received a satisfactory conclusion, it's time to make a formal complaint to the Financial Ombudsman Service, again full help and advice is given on the Moneysavingexpert website.

In fact, one of my favourite things about using the Moneysavingexpert website is that if you need help, all you need to do is ask in the forums and someone will always have the advice you need.

So you see, there's no need to PAY someone to do something which you can do yourself for FREE!

This article was written by me, using information from the Moneysavingexpert website. I wasn't paid, or asked to write this article. I wrote this myself because I wanted to share this information and stop people paying for something they can do themselves for free)

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