Payment Protection Insurance Compensation

How does one become entitled to receive Payment Protection Insurance compensation? Is this the same as receiving the payout after making a claim on in the PPI policy? Payment Protection Insurance compensation is in the news primarily due to the widespread misselling of PPI policies.

Who Is Entitled To PPI Compensation?

The most blatant form of misselling happened when policies were sold to those who were eligible to purchase the same. These buyers ended up paying PPI premiums for years at a stretch without being eligible to gain anything in return. Such individuals are obvious entitled to Payment Protection Insurance compensation. Other instances of misselling included instances like

• Including cost PPI policy without the buyer's consent,
• Making purchase of PPI compulsory to become eligible for a loan ,
• Restricting the buyer from analyzing PPI policies sold by other sellers.

Any individual who proves that he or she became of victim of PPI misselling is entitled to compensation. Banks, financial institutions and insurers are bound to pay Payment Protection Insurance compensation irrespective of whether the loan transaction is active or not.

How Is Payment Protection Insurance Compensation Calculated?

Service providers who specialize in filing PPI claims can help you determine the exact amount that you have paid towards the missold PPI policy. In an ideal scenario, you should get back not just the amount paid but the interest income lost on the amount paid on missold PPI policies as well. However, the final Payment Protection Insurance compensation amount is mutually decided by the policy holder and the bank through detailed negotiations.

Employing intermediaries can help you negotiate from a position of strength even if you are not aware of the technical aspects of the transaction. You will get a clear and precise idea about the Payment Protection Insurance compensation that you are entitled to from banks. You can then take the call and instruct your intermediary accordingly.

How To Recover Payment Protection Insurance Compensation From Banks?

The procedure to recover Payment Protection Insurance compensation begins by sending a formal letter to the bank indicating that you are a victim of missold PPI, and that you are seeking compensation for the same. If the bank accepts your claim, then the next step is to negotiate the actual amount of Payment Protection Insurance compensation. If your claim is rejected outright or if there is no agreement on the amount of compensation, you can take your case to the Financial Ombudsman Service for impartial adjudication.

How Can Intermediaries Help?

The process of Payment Protection Insurance compensation can seem daunting, particularly if you do not possess any knowledge about financial matters. Instead of taking the risk of ending up with inadequate compensation, you should consider employing intermediaries who will take over the task of approaching banks, negotiating the Payment Protection Insurance compensation amount, and finalizing the settlement. You can also rely on intermediaries to approach the FOS if your claim is rejected.

The scale of PPI misselling can be inferred from the fact that banks and financial institutions expect the total cost of PPI misselling to cross 15 billion pounds. To recover your share from this huge sum, just visit www.ppiclaimsdirect.net.