Before you begin any insurance claim, you need to understand how what the policy is covering you for. This means reading through the terms and conditions surrounding the insurance policy. But, do you really understand the terminologies written on the terms and conditions? A study by the consumer group Which? shows that UK banks are always trying to hide their intentions in selling some specific financial products such as Payment Protection Insurance.
The study done by Which? was performed to know how banking institutions, building societies and other lenders inform their customers of bank charges, of their validity in making a claim, their legal rights and for their refunds. A test was issued to a survey panel and the respondents were given unlimited time to answer the tests.
None of the banks scored a perfect 100% from their customers. The bank with the lowest score was Lloyds TSB, with respondents understanding only 53% of their terms and conditions. Next comes NatWest with 67% due to some technical terms. Included in the test were Barclays, Santander, Nationwide, HSBC, First Direct and Halifax.
The study confirms that while most know how to make an effective PPI claim, truly valid points that you identify using the terms and conditions of the bank can save you much time in claiming with the Financial Ombudsman or with a claims management company such as www.PPICo.co.uk. It can also save you from potential insurance and other financial product mis selling in the future.