What Do You Do If Your PPI Claim Is Denied?
The primary reason why people purchase payment protection insurance, also known as a PPI claim, is to provide them with cover in case they fall into hard financial times and are unable to continue making payments on their debt obligations. A good payment protection plan can protect you against losing your house or defaulting on your debts, if handled properly, and thus can be quite the boon for someone temporarily down on their luck. However, more than half of all payment protection claims are denied offhand by the insurance providers due to various loopholes and unprotected circumstances, which can result in serious financial consequences for a downtrodden individual.
It is important that you learn how to protect yourself from getting simply denied out of hand when you file a PPI claim. Unfortunately, if you need to claim your benefits the chances are strong that you will be one of the thousands of people who are denied, and you need to be prepared for this possibility. If your claim is denied the first thing you need to do is learn why. Was it because you failed to file correctly? Are your circumstances not covered by the plan? Did you make a payment after losing your employment? Your lender may try and hide the real reasons for your rejection behind a veil of legal jargon, but you can call them up and ask them to explain the situation in plain language to you in order to understand what you are facing. Never give up after the first refusal, the banks and lenders rely on people giving up too easily in order to increase their profits when in fact many claims that they deny are perfectly legitimate. If you press the matter you may be able to receive your benefits after all, so make sure to call them and question everything.
There are also many advocacy organizations and various companies that specialize in assisting people who have been denied. As a result of recent investigations and sting operations by consumer watchdog organizations the plight of many payment protection insurance holders has become common knowledge and a cottage industry has arisen around getting them their benefits or recovering payments on unnecessary plans. Additionally, many people are denied their benefits because they were never eligible to receive them in the first place–if that is your situation it may be possible to reclaim all the payments you made to the insurance plan as a result of being sold a plan you did not need. Take advantage of these companies and organizations to get counseling on how to handle your situation.
