Is It Possible A Ppi Reclaim Couple Pay Of My Debt?
Payment Protection Insurance is one of the most profitable products offered by lenders
. Most people think the banks make the majority of their money from the interest charged on credit cards and loans but it may come as a surprise that these are not among the top earners. When it comes to insurance, for every 100 charged by a lender there is only a 15% chance a customer will ever make a claim against them, and even if they do most lenders wriggle out of ever paying up due to exclusions in the small print which prevent consumers from qualifying to reclaim their PPI.
Every industry has its favourite methods of making extra profits with the least amount of effort, and the financial industry is no different. However, if you had to guess what the industry's favourite method was, chances are you wouldn't pick PPI as a money-spinner or pet profit-maker. But this particular product has reaped massive profits for lenders - and is now dispensing a sting in the tail that has caused the industry its biggest headache and a potential 2.7bn bill to be paid on PPI claims over the next five years.
The lengths lenders have gone to, to sell PPI are extraordinary and in some respects, unbelievable, simply due to the massive profits that could be made on each policy, far more than what could be made on the interest from loans and credit cards. If you are reading this and wondering if you may be one of those people who has suffered at the hands of the lenders then reclaiming your PPI could be the answer to your debt problems.
Below is a list of tactics lenders use to sell you PPI and any one of them could make the claims valid. Shockingly this is pretty basic stuff for a lender and you'd be surprised at the full extent of the unscrupulous and unethical tactics lenders use to get you to have PPI. Such as; 1) Not knowing you had it in the first place! 2) Not hearing PPI mentioned clearly because it was slipped quickly into the conversation 3) Referring to PPI in the context of you being 'fully protected' 4) Being told it is compulsory to have the lender's PPI if you wanted to obtain credit from them 5) Pre-filled application with boxes 'helpfully' ticked - those boxes that make the lender the most amount of money that is 6) The policy is not what you asked for or agreed to 7) You didn't know your loan was longer than the PPI policy 8) The PPI is a joint policy held in one person's name 9) You were a student, unemployed or retired when you were sold the policy yet it doesn't cover you under these circumstances 10) Doesn't cover you if you are a sole trader, but you were told it did 11) Never asked about pre-existing medical conditions, which of course the policy will not pay out on 12) Never asked about any alternative cover you may already have with an employer or other lender
Any of the above are grounds for a PPI claim, but it may not be an easy process. Recently the Financial Ombudsman complained to the Financial Regulators about lenders immediately rejecting claims as they arrive and being deliberately obstructive. This is despite 89% of all complaints that the Ombudsman deals with relating to PPI claims having merit and subsequently being upheld.
So why do lenders do it? Simply to try and make the process as difficult as possible so you will give up on your claim. Most people would give up after the third or fourth letter from the lender refusing to discuss a complaint or simply rejecting the PPI claim as having no basis. In fact, sometimes the lenders don't even bother responding to your claim letters and just completely ignore you! You have to develop a thick skin, be very persistent and see the process through to the end, even though it could take several months.
Sometimes you can speed up the process considerably by using an experienced claims company, to help you prepare, submit and manage your PPI claim. Most lenders don't bother to try delaying tactics with these companies because they know they have a great deal of legal knowledge behind them, not to mention do not tolerate silliness or obstruction from a lender.
While it may take a while for you reach a successful conclusion to your claim, it is worth doing if only for the satisfaction of paying off some - if not all - of your debt with your refund. And of course, getting rid of an unethical lender who tried to cream off a bit more profit by pushing you further into debt is also immensely satisfying too!
by: Barry Bennett.
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