1. You can write to the lender and insurance company that provided your loan and Payment Protection Policy. The advantage of this is, it is simple quick and doesn't cost anything. The disadvantage is that if the lender denies any wrong doing and rejects your claim, you need at least the basic grasp of the legal principles involved to argue your case.
The next issue is in assessing any offer the lender may make. How can you assess if the offer represents a fair settlement? Can you trust the very people who let you down in the first place to make you a fair offer?

2. The second option is to complain to the Payments Protection Insurance Company's compliance officer. The provider of Payment Protection Insurance Policy is regulated by the Financial Service Authority.

The FSA has strict rules which apply to all companies providing PPI. Each company has to have a compliance officer and there is a strict set of rules governing the treatment of complaints which the insurance provider is legally obliged to adhere to. If you do not receive satisfaction from the company and you are not happy with the companies response to your complaint you have the legal right to write to the Financial Ombudsman Service. The FOS will investigate your complaint and provide a review of your case and will make a written recommendation as to how the company should resolve your complaint if they find in your favour.

The Advantages

No costs, this service is free.
The FOS obviously possesses the knowledge and has the experience to asses your case.
You can feel confident your case will get a fair hearing and the lender will have to prove it has treated you fairly.

The Disadvantages

Assuming your complaint is upheld by the FOS it can only make recommendations to the Insurance Provider, it doesn't necessarily obtain damages for you.

Any compensation you may well be entitled to due to breaches of the Consumer Credit Act 1974 would need to be claimed separately. The FSA regulates the insurance providers of your loan. This may well mean you need legal advice to maximize your claim.


The Third Option

Use a qualified claim management company to act on your behalf. Companies or individuals who operate in this market are government licensed either by the Ministry of Justice, The Solicitors Regulatory Authority or the Financial Services Authority.

You will have access to qualified legal personnel to review your case and perhaps more importantly how to assess the correct amount of compensation. For example if your Lender offered you a partial refund or 100% of the premium back you may agree and think this is a reasonable settlement.

However you may be advised that your claim should be thousands of pounds in addition to the return of the premium.

The Lender is more likely to take notice of a professionally prepared claim and is more likely to deal with the matter sooner, rather than later.

We recommend that if you decide to use a claims management company you use a company that has access to a legal practice to handle your claim.

The Advantages

One of the main advantages of using a lawyer to claim for you is that a lawyer can make the right assessment of the response to your complaint.

It is not unreasonable to assume the lender will use lawyers to defend their position and it is possible if you act for yourself you may not obtain the maximum compensation due to your inexperience.

A professional company using lawyers dedicated to obtaining the fairest possible outcome for their clients must consider the possibility that the case may go to court. In this instance you need to ensure that your claims company is waiving their fees and costs in the unlikely event you lose your case. This is commonly known as No Win No Fee.

It is absolutely imperative your claim agents have obtained an insurance policy which indemnifies you against all fees. If you lose your case the other side may well sue you for their costs.

A major benefit is to have someone else doing all the work for you.

The Disadvantages

There is only one real disadvantage - it costs money.

The standards of service and levels of support and advice vary from company to company. A guide to the costs could vary from 10% of your claim to 25% of your claim payable only when you are rewarded compensation, commonly known as No Win No Fee.

This means you pay nothing up front whatsoever but if your claim agent successfully obtains a settlement for you; a percentage of the claim will be deducted from your settlement cheque. You may wish to pay an upfront fee and keep all your compensation.

Property Shop is an agent of Retrieve Ltd who are regulated by the Ministry of Justice in respect of Regulated Claims Management Activities. Registration number CRM11725. This registration is recorded at www.claimsregulation.gov.uk