FOS settling claims
- 18TH MAY 2007
Many people who feel that they were mis-sold their payment protection insurance (PPI) have now had their compensation claims successfully settled with the intervention of the Financial Ombudsman(FOS).
However, a common question that is being asked is whether there a time limit to when someone who feels that they were mis-sold a policy can claim.
Industry expert Simon Burgess, who is also MD of standalone p[payment protection insurance provider British Insurance says that if you bought the policy before January 2005, you may well not be able to claim.
This is because January 2005 was the date that general insurance regulation by the Financial Services Authority (FSA) started. At this time, the FSA started regulating many types of insurance, including payment protection insurance.
Simon advices: “If you bought your policy before 31 January 2005, it really depends whether your provider was regulated by the FSA. It was only the larger companies that tended to be regulated by the FSA –before this date, such as banks, building societies and insurance companies.
“So, if you bought your policy from an insurance broker or someone similar – for example, a car dealership which sold the insurance alongside a car finance agreement - the sale probably would not have been regulated.”
However, Simon does say that you can still complain to the FOS if your complaint is about a claim, such as it not paying out when you are expecting it to. This is because it would be the insurance company who you are claiming from and who are regulated who are deciding your claim.
Simon recommends that anyone with any doubt about their payment protection insurance cover should contact the FOS on 0845 080 1800.
