Despite the FSA, applying strict guidelines to companies when selling PPI, there are thousands of people who are still sold PPI, either without their knowledge or are misinformed when being sold the PPI.
If you have either gone for a mortgage or credit card or for credit when buying a valuable item like a car for example, chances are that you have come across PPI.
Payment Protection Insurance is an insurance cover that sees to it that your loans are paid, in the event of you becoming unemployed, invalid and even covers death. But, there’s more to it than what meets the eye. Banks are notorious when it comes to approving a reclaim. The Financial Ombudsman Services has said that almost 100,000 people have applied to them complaining that their PPI claim was rejected, and 4 out 5 cases that were heard by the PPI, were resolved in favor of the customer. This is because a vast majority of people have been sold the PPI, under a missell, i.e the PPI was sold to them either by giving misleading or by giving inadequate information.
There are two types of PPI-monthly premium policy and single premium policy.
Under the single premium policy, the premium is calculated for 36-60 months and added to the loan amount. A single policy premium cannot be cancelled and the consumer often ends of paying interest for the PPI, at the same rate as he would pay to the main loan. This type of PPI is generally common in instances where people go for mortgage loans.
Monthly premium policy on the other hand is added to the account on a monthly basis and can be either increased, decreased or even cancelled. This is usually added to credit cards. To check if you are paying for PPI on your credit card , you could simply check your monthly statement.
People who were unemployed, self employed or retired or people eligible for a full sick pay or people who have crossed the upper age limit cannot apply for PPI. But there are many instances of consumers being sold a PPI even though they fall under the above conditions. Also many a times people have been coerced to by a PPI, saying that their loans would stand rejected f they do not go for a PPI. Also people are sold a PPI, without the being informed that they can also opt for cheaper options available with a third party vendor. There are instances of a mis sell and the consumer can apply for a reclaim of the premium paid, in addition to compensation.
To apply for a compensation you have to first apply to the bank that sold you the PPI, mentioning in detail about why you think a reclaim is required and why do you think you have been missold a PPI. If the bank rejects the claim you could contact an attorney or a claims management company (although they sometimes charge anywhere between 25-40 % of the settlement) to reclaim you PPI. In some instances the reclaim would have to be referred to the Financial Ombudsman Services.
The author of this article has immense knowledge in PPI Claims and is in close association with Real Claims. Real Claims is one of the leading companies in the UK specializing in Payment Protection Insurance reclaims. Unlike other PPI Claim companies will take on larger credit card PPI claims going through a litigation process allowing them to potentially claim more money for the client.
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