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How Far Back can you Claim PPI?

Posted on | December 5, 2016 | Comments Off on How Far Back can you Claim PPI?

PPI or Payment Protection Insurance is protection that is included with mortgages, credit cards or loans. It actually protects your payments for one full year in the event you lose your job, become disabled, or any event that renders you unable to make payments. It is a valuable form of insurance which helps protect loan repayments in the event of unforeseen circumstances.

One of the most common questions with those that have PPI is how far back can you claim PPI? Many people that ask this question have had PPI mis-sold to them and want to make PPI claim from their loan providers. The answer to this question is somewhat detailed since it can be a complex process and it is highly recommended that you consult an expert claims management company to file a claim. They can advise you whether you are actually entitled to a refund even before you file a claim.

There is a 6-year time limit for many PPI claims however this time limit was set by the FOS or Financial Ombudsman Services. This is the amount of time that lending institutions including banks must retain records that are in direct relation to any financial agreement such as a mortgage or loan that you have with them. Those records are kept on file the entire time you are repaying your loan. What people don’t know is that only when the loan is repaid or the policy has ended or is terminated does the 6-year time limit come into play. The 6-year time limit is not recognized while a loan is active or being repaid.

If you have an active loan or mortgage meaning you are still making payments the 6-year time limit is not in effect. Only when a loan has been repaid, is inactive or has been terminated is the 6-year time limit in effect. This is one of the most common misunderstandings that many people have when considering how far back they can go to claim PPI.

So the answer to the question how far back can you claim PPI actually depends on the time limit on your loan or mortgage plus the 6-year time limit.