subject: Do I Have to Close my Account to Claim Back PPI? [print this page] Do I Have to Close my Account to Claim Back PPI?
If you feel that you have a case for reclaiming PPI costs then there really is no reason to hesitate in moving the process forward. Unfortunately there are a few reasons why many people are reluctant to proceed in making a claim and one such issue is the assumption that they will have to close their account if they go ahead.
The feeling is that if the account holder instigates a claim for reclaiming mis sold PPI, then the credit card, bank or loan company will immediately close the account resulting in a great deal of inconvenience.
Quite simply this is not the case and the company you are looking to claim from has no right whatsoever to cancel your account.
In the early days, when the process of reclaiming unfair charges first hit the headlines, a few banks did attempt to close down customer's accounts. This was very rare however and was seen as a petulant act that had no legal justification behind it. Today, as PPI claims have progressed, the process of closing an account is almost unheard of. In the very unlikely case that a bank, loan company or credit card company should try to close your account then you have a certain amount of recourse to challenge that decision.
The Financial Ombudsman is on hand to deal with many cases of suspected unfair treatment at the hands of financial institutions. If your account were to be closed then they can be approached to deal with any subsequent complaint against the company concerned.
There is no risk on the account holder's part and the process is very straightforward. However, by taking this action, serious implications could arise for the company concerned and they could face a fine for their actions. At the very least they will face an intrusive investigation and will have to deal with a lot of unnecessary paperwork. As you can see it would be far easier for them just to keep your account open rather than have to go through all of this.
Above all, when a PPI claim is upheld then the companies concerned acknowledge the decision and like you, they just want to move on. The likelihood that they would even consider closing your account probably won't even cross their agendas and convenience will dictate that it will continue as before.
In spite of any claim going against them, the company concerned are aware of your business which is making them money like anyone else's. To keep your account going will in turn keep earning money for them and this could well be their prime consideration. Keeping you as a customer is in their interest.
In short, you do not have to close your account in order to claim back PPI. There is no legal justification for your bank, loan or credit card company to do so as it simply isn't a viable course of action. There really is no risk in you claiming and this question should not deter you in proceeding.
