Finance

5 Common Misconceptions Surrounding PPI

The PPI scandal has been going on for a number of years now and is far from over despite the approaching deadline. However, because of the confusion surrounding what PPI is and how to make the claim using PPI claim companies, there are several myths and misconceptions that have led many to put off reclaiming the money they are owed. Here, we are going to look at five of the common misconceptions surrounding PPI and the reclaiming process.

The PPI Scandal Will End After The 29th of August

This is one of the common misconceptions surrounding the PPI claims scandal and has people worried about whether they will receive their payment following the deadline. Fortunately for those that have made a claim but are yet to hear back, this is not the case. The Financial Ombudsman service has a backlog of all those that have made claims and is beginning to reach out to those that are owed money. This will continue long after the deadline if the initial claim has been filed prior to August 29th.

Claims Companies Take 30% In Commission

Another common misconception surrounding PPI claims is that the company takes 30% of the winnings in commission. This is not the case with most claims’ companies operating on a strictly no win no fee bases. This is beneficial for you as an individual as this allows the stress of a PPI claim to be dealt with elsewhere. Claims companies are also easily accessible online and are in constant contact throughout every aspect of the campaign.

You Have No PPI

A lot of people often assume that a scandal such as this will not directly affect us. However, this is entirely untrue. Even if you feel that you are not owed PPI compensation you should check on any loans, mortgages and car finance plans that you have had in the last 10 years as you may be owed PPI compensation. Although you may not earn a lot, or you may not have even been mis-sold PPI in the first place, it is important to check before the deadline as you could be losing out on money that you are rightfully owed.

You Need Paperwork To Claim

Many people also think that you need paperwork to claim back the PPI that you are owed, however, this is not the case. If you are using a PPI claim company, they can contact the lender directly and look through records to see if you have been wrongfully sold PPI. If this is the case, they will apply for you allowing you to go about your day completely stress-free without worrying about the status of your claim. Although this can be a long-winded process it is important to be patient as this could lead to a lump sum at the end of the process.

You Should Avoid Claims Companies

Another common misconception to the PPI claims process is that you do not need a claim company to help you. Although this is correct to a certain extent, a claims company have year’s worth of experience to help you get the best possible outcome from your claim. This will take away the stress of making the claim and is particularly useful if you have limited knowledge or even a limited amount of paperwork.

Regardless of what you have heard, it is vital that you make your PPI claim before August 29th as you may be missing out on large sums of money as a result. Therefore, it is key to begin making your claims as soon as possible before it is too late.

 

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