Regulations surrounding PPI

Claiming back payment protection insurance is becoming a growing trend it seems

11:28 22 November 2012

According to some reports, it is thought that 20million payment protection insurance (PPI) policies have been sold in Britain. Of these, many customers are thought to have not wanted PPI cover or perhaps even needed it.

 

It is because of this that there has been a wave of complaints with regards to PPI, with many cases being successful and payment protection insurance being reclaimed.

 

People wanting to claim back mis-sold PPI can use one of the many companies who are specialised in dealing with the claim. It is understood there could be as many as 800 firms who look at payment protection insurance claims.

 

The Financial Ombudsman Service (FOS)

 

This independent service is run by the government and aims to assist members of the public when it comes to complaints regarding financial organisations. They have their own set of rules for claims management companies and these can relate to PPI.

 

The Ministry of Justice

 

The Ministry of Justice (MoJ), who regulate claims management companies, has seen an increase in the number of complaints received concerning payment protection insurance. The MoJ’s code of practise requires firms to adhere to certain rules when dealing with PPI claims.

 

Here are some of the things the MoJ expect from companies when they are dealing with PPI;

 

•    Correct advertising codes are required

•    The MoJ is to be referred to on advertising material

•    Procedures to be in place to correctly deal with complaints

•    Inform customer of any fees that could be incurred

•    To not endorse intensified sales

•    For the company to refrain from cold-calling

•    To allow a cooling off period of 14 days