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PPI (Payment Protection Insurance) is a policy which was introduced  a decade back to cover the repayment charges of a loan, credit card and mortgages in a situation where the borrower was unable to make the monthly repayment. This would cover the repayment charges if the borrower was sick, unemployed or if they met with an accident. However, this policy was mis-sold on a large scale by both big banks and lenders for making extra profits. The sales people involved in selling PPI used fraudulent techniques to sell the policies to customers who were not even eligible for the policy or were not even aware of it being attached to their loan or credit card. This happened on a massive scale as the banks asked their sales persons to use whatever technique they had to, to sell PPI and were given incentives on the sales that they made as banks made a huge amount of money from it.

After the whole PPI scam came into light, the banks and lenders were obligated by the FSA to provide refunds to the customers who were mis-sold PPI. Ever since then, there has been numerous claims made by people who were mis-sold PPI and they have also been compensated fairly. However, reports show that there are still a huge number of people who are yet to make a claim. They probably wonder if there is any specific period to claim PPI as they don’t know if they are eligible to make a claim.

By the general rules governing the PPI claim process, if you are amongst the ones who have had a PPI policy attached with your loan/credit card/mortgage taken within 6 years, you are eligible to make a claim, provided you were mis-sold the policy.

Most banks and lenders maintain systematic financial order for a period of six years. This assists them to keep a close hold of your records throughout the time the policy is valid. Beyond that time frame, a policy is generally deemed to be over and they discard the information related to it.

In case your policy is still live, you can make a claim because as of now, the six year term period has not yet come into play. This has lead to a lot of confusion amongst consumers in the past with regards to when they can apply for a claim.

The Most Complicated Situation

Things don’t always work to plan, especially in legal and financial matters. Different banks have a different functioning procedure and situations turn complex. For instance, some banks dispose data in six years while others maintain them for a longer duration. Generally banks maintain the information related to a particular account for more than 6 years

Irrespective of the policy that your bank follows, you can always ask them to provide you with your PPI policy details. In case they do not have relevant information about the policy, they can provide you with the estimated data.

PPI Claims Before 2005

Some PPI claims are about the policies that were take out before 2005.  Normally, financial institutions and banks take benefit of the loop-holes in PPI claims process and exploit customers. However, there are some renowned claim management companies which help such customers and provide them assistance to get the money back that truly belongs to them.

Initially, PPI claim was a really daunting and time consuming process as the lenders would deny being responsible for the mis-selling and declined from making any refund. It is only because of the efforts of FOS (Financial Ombudsman Services) and claim management companies that have enabled PPI mis-selling victims to make successful PPI claims and get back the money that was taken wrongly from them by their bank or lender.

The reality is that you can sometimes claim for mis-sold PPI even after the specified six year duration. However, this can be done only if you can provide evidence that you were mis-sold PPI by your bank or lender.

There are instances where people failed to provide enough evidence about PPI being mis-sold to them. Besides, they fail to highlight the fact that the mortgage was sold prior to 2005.

You have to consider the fact that you can claim PPI straight away if your policy is currently live. The six year rule is applicable only if the policy naturally comes to an end or is terminated. In the past, there have been instances where customers had policy twenty years ago but stopped paying for the policy in the last 7-8 years. If this is your case, you can still claim for it.

Basically, you can apply for PPI claim at any point of time but you ought to have necessary documents related to the policy along with supporting proof that you were mis-sold PPI.

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