Reclaiming Mis-Sold PPI Fees

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When you were taking out a mortgage, car loan, or other type of debt, there’s a good chance someone tried to sell you PPI (Payment Protection Insurance).  If you bought a policy and meet certain requirements, then you could receive a refund of all the money you’ve paid towards that policy.
Background on PPI Refunds 
The Office of Fair Trading (OFT) and Financial Services Authority (FSA) have been investigating PPI for awhile.  As a result, they have discovered that a number of the policies have actually been mis-sold and are, therefore, not considered valid.
When the OFT and FSA describe the policies as mis-sold, they could mean several things.  One common problem is that the insurance actually ends up costing more than the consumer anticipates.  In most cases, those small monthly payments end up costing more than the total interest by the end of repayment.
Another issue is that PPI is often automatically included in the loan fees.  If you don’t carefully review a breakdown of the loan fees and costs, then you may end up paying for something you never asked for or did not want.
PPI Refund Requirements 
The most obvious requirement is you must currently have PPI or have had the insurance within the last six years.  If it’s been more than six years and you still have your documentation, you can still try to get your money back but you’ll be facing a bigger battle.
Another requirement is that you cannot have made a successful claim against your policy.  If so, you are no longer eligible for the refund.  Plus, you should keep in mind that by asking for a reclaim you are essentially requesting cancellation of the policy.  If that’s not what you want, then do not try to recoup your losses.
Besides these requirements, you need to fit into a specific category of mis-selling.  For example, if you weren’t told the details of the policy or if you weren’t asked about your employment or past health problems then you may be eligible for a refund.  If you already know that your lender has been fined for mis-selling, then it’s a good bet you should be eligible for a refund, too.
Remember that PPI is not necessarily a bad idea, but these lenders are simply not providing you with the best options.  For example, you could get similar protection with a separate policy and save about 70%.  That’s why you really need to look around at all of your options before taking out a loan.
Keep in mind that if you do receive a refund, it might be a great time to start a savings account which could also be useful protection.  Nationwide Regular Savings is a good choice if you want a good return on your investment.  Another choice is Britannia Tree-for-all Savings.  When you open an account with them, a tree will be planted so you’ll also be helping the environment and the stability of your financial situation.