PPI is very common these days. It is a type of insurance which protects people from missing out on payments towards their credit cards, mortgage payments etc. In case if you get sick or unemployed or any other valid reason for your delay or absenteeism in payment the insurance cover it for you.
Many people take advantage of the PPI and misuse it for other purposes. People are aware about the PPI scandals but they are unaware about the basic rule of PPI. The main question which always arises with insurance bearers is how far back a PPI claim covers you?
Today many people have a misconception that a PPI claim can cover back for 6 years. In this article we will clear some of these misconceptions for your benefit. Some of them are mentioned below for your benefit:-
- Firstly the six year time limit was laid down by the FOS (Financial Ombudsman Service). The six year time limit comes in to picture when your policy is completed or terminated. In simple terms, your bank is liable to keep your records and details in a file for a time period of six years from the date of termination or completion of your policy.
Misconception – People believe that the six years time limit starts from the time they took the policy out.
- If your PPI policy is still active and you are completely eligible for a claim, as the six year time limit will only come into existence after your policy becomes inactive. This is one of the major misconception people have with the six year time limit.
- If you have an active policy, your lender is liable to keep all your records and details whether the details are 2 months or twenty years old. If your lender or the bank misplaces some of the details of you borrowing money, they are asked to do an estimate of the missing details.
Claims prior to 2005 –
Many people are concerned about their claims before 2005. Most banks and lenders have regulated new restrictions and rules with effect from 2005. The FOS is not able to settle the disputes of people claiming their policy refunds prior to 2005. There are many companies that are offering quality services to help people in this situation.
It is very important to have complete and clear knowledge about the PPI claim and refund policies. Make sure you do your research before claiming refund for PPI.