For those who have any form of mortgage, credit card or loan and are living within the UK, it is vital that you check whether or not you have PPI, also known as Payment Protection Insurance. You might have never heard of it, but should you have debts then you may very well be paying hundreds of pounds for it. If you signed on for a loan that was “protected” then what that often means is that you are not only repaying your loan, but an additional insurance, referred to as PPI, to the banks. PPI purports to cover you in the event that you suffer an accident or injury that inhibits you from repaying your debt, it guarantees to repay monthly payments of the debt, under very strict situations, and in the event that you can not repay it.
Nevertheless, the problem is a growing number of people have been mis sold payment protection insurance. Some people were told that it was required in order for them to be given the loan, while others were simply not told the actual fees. Some people might say that PPI is helpful to have, but there are several problems with this. First of all, PPI claims have some of the lowest payout rates for any kind of insurance; the firms very rarely pay when people thought they would. Secondly, many policies only cover you for a period of twelve months, causing you to be high and dry when this coverage runs out.
Due to all of this, a lot of people have claimed that their payment protection insurance was sold to them under false pretenses and have attempted to reclaim missold ppi, with great success in many cases. The FSA or Financial Services Authority in the UK has been fining many high-street companies within the premise that they have been ppi misselling and thus have set a precedent for claims to be refunded. The danger to the companies and banks is the fact that, should they choose to not withhold someone’s ppi refund, they stand the risk of being sued. Should that lawsuit succeed, a precedent would be set which might permit a great many people to demand their money back.
As a result some banks and lenders are presently quietly paying off folks who claim that their PPI policy was sold to them unfairly. You can speak with your bank or lender yourself or speak to a claims company who will do the same for you for a fee. Attempt to have all of your information ready, and remember what the loan broker mentioned at the point which you purchased the service – did they make any promises that they should not have, or make out you had a better chance obtaining the loan/finance with ppi,and did they make the expense clear? If not, then to reclaim missold ppi back may be a possibility.
Author Chargebackclaims 21st Sept 2010
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