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Archive for tag: PPI Multiple Choice Quiz!

PPI Multiple Choice Quiz!

Part 1: Making a PPI Compensation Claim

Test your knowledge of the payment protection insurance (PPI) mis-selling saga so far with our multiple choice quiz! Check the answers below!

1. The mis-selling of PPI relates to...

a) Only a small number of UK banks

b) Every bank and lender in the UK

c) Credit card companies

2. You can claim back PPI by...

a) Writing a letter

b) Getting a solicitor to take your case to court

c) By phoning your bank

3. If the bank says 'no' to your PPI claim, you can ...

a) write another letter to your bank, asking them to change their mind

b) take your case to the Financial Ombudsman Service

c) shrug you shoulders and give up

The Answers

1. Answer B

Predictions are that virtually bank and lender in the UK is 'guilty' of mis-selling PPI, although many customers think it is mainly the banks and well-known lenders. Mortgages, credit cards and personal loans from banks are all affected BUT, if you have taken out car finance, store cards or business loans etc. these too could have PPI on them. It pays to check all your accounts, no matter how large or small it is.

2. Answer A

All PPI claims, no matter who the loan etc. is with, starts with a letter. You can phone your bank or lender but they are unlikely to resolve the issue over the phone. Part of the claiming your money back is telling the bank why you believe you were mis-sold the PPI policy in the first place. Even though everyone know acknowledges the way PPI was mis-sold is unfair, it still falls to the consumer (that is, you) to prove you were mis-sold the policy in the first place.

3. Answer B

If your bank or lender does refuse or dispute your initial reasons for a PPI refund, you can of course, write to them or ring them again asking them to re-consider; however, they are unlikely to change their mind in this way. The best option is to refer your case to the Financial Ombudsman Service. This is an independent body, who will look at all the evidence from you and your lender and reach their own conclusion about whether you are entitled to PPI compensation or not. The majority of cases - up to 75% - of PPI cases it deals with are resolved in favour of the consumer. But, be warned, it will take several months for them to get to your case, simply as they are dealing with a huge PPI case load.

If you are not sure on any aspect of PPI and making a claim, you can also use the services of a company such as Payment Protection Scotland. We have hundreds of customers claim back the compensation they are entitled to after being mis-sold PPI. Don't let the banks get away with it! If you have a genuine PPI compensation claim, then give Payment Protection Scotland a call.