How Long Does It Take To Reclaim Payment Protection Insurance?

While payment protection insurance (PPI) theoretically sounds like a great protection for the consumer, many people were lied to about the cost of the service. Banks, providers and third party brokers often told borrowers that PPI was included at no cost and protected the loan. Other companies developed a script for salespeople to follow which told potential borrowers that if they purchased PPI, it would greatly increase the chances of their loan being approved. With such rampant mis-selling of PPI plans, consumers eventually began to file PPI reclaims. The Financial Services Authority ruled in favour of the consumers and now estimates that over three million people are eligible to reclaim the fees associated with these unfair charges. So, how long will it take to get your money back after filing a claim?

On average, claims take up to 12 weeks. Once someone files to reclaim, a number of things can affect the time it takes to receive the money. Factors such as who the lender is, how much original paperwork you have from the loan, date you took out the loan, the number of claims the lender is dealing with, how much money the lender owes you, or how cooperative the lender is willing to be with respect to repayment. There is no timescale that the lenders must follow in the claims process. If the case is more complex than others, it can take much longer to complete. However, there are some things that consumers can do to make the process go as quickly as possible.

In order to submit your initial reclaim for PPI, you must have an original copy of your loan agreement. This is the very first contract you signed when initiating the loan agreement. It is also beneficial if you have any statements that show you were charged for PPI. If you did not save your copy of the agreement, you will need to contact the lender and request that they send you a copy. Naturally, the lender can take as long as they choose in sending the loan agreement copy. If you live near the lender's office, it would be to your advantage to visit them and simply ask for a copy of the agreement. It may be necessary to make several visits to the lender, but you must have the original copy of your agreement before you can initiate the reclaim process.

While you can file a claim without professional help, it can be very confusing. The last thing you want to do is forget to sign a paper or submit the wrong numbers. It is often much easier to use a claims company to file your reclaim case for you. They are knowledgeable in the reclaim process and usually do not charge a fee unless they win your case. It is important to use a company that is regulated and fully authorised. Always research the claims company you consider using and then schedule a consultation to discuss your case.

By: Vincent A Rogers

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Vincent Rogers is a freelance writer who writes for a number of UK businesses. To Reclaim PPI Insurance, he recommends Randall and Vickers Ltd.