An article by the Mirror discusses the Financial Conduct Authority’s (FCA) recent rule where those who may have had a previous rejected claim can now reclaim. The Mirror reported that 1.2 million people who had their claims rejected, could be owed compensation due to unfair transactions when PPI was originally sold. It is best to get this sorted now before the deadline to claim creeps up, so pencil it in your diary, 29 August 2019 – do not forget!
So, first – why was your claim rejected?
There are multiple reasons as to why your claim may have been rejected and it’s usually down to the bank, not your claim. Sometimes the lenders use vague language throughout a rejection letter which tends to confuse claimants and results in them giving up on claiming when actually, something could still be done.
If you are still unsure of why your claim was rejected, write back and specifically ask what the exact reason is for you being rejected. After you have spoke to an advisor and received as much information as possible, it is best to contact the Financial Ombudsman Service (FOS).
You will need to ensure you have all the correct documents and inform them of any extra information you found out – so make sure you keep a note of the extra information when on the phone to an advisor! The FOS will continue by speaking to both the lender and the customer which will allow them to construct a final decision, this could take up to a number of months. Remember – you must contact the FOS within six months of receiving your rejection.
- Is there a time limit? Similar to the FOS, the usual time limit is six months from your rejections, however as early as possible is best to ensure time for the advisor to speak to both the lender and the claimant.
- How far can I date back a claim? Although there is no time limit on how far back the claim goes, it can become more difficult if your policy ended after the six year mark because banks don’t necessarily need to keep any records after this time and therefore will not have your paperwork.
- What if the company doesn’t exist anymore? If the company went bust then you should contact the Financial Services Compensation Scheme (FSCS) however if it was bought by a different company, you can complain to them because they will have become liable.
- What if I don’t have a PPI claim but I have a PBA claim? PBAs with great benefits are offered to customers for a fixed monthly price but the benefits turned out to be mostly irrelevant to a lot of customers, so they felt they were sold to unfairly. If you don’t know whether you have PBA claim, check your statements for word ‘charge’ – this means you were sold Packaged Bank Accounts.