Ppi Reclaims - The Smart Pay To Pay Off 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.
Payment Protection Insurance was once regarded as a very useful insurance policy that could provide an income in the event of illness or redundancy. But all of the benefits of this insurance are mostly forgotten now in the wake of its massive mis-selling by lenders over the last few years. The avalanche of PPI claims as a result has been predicted to reach some 2.7bn in refunds and compensation over the next five years. For many, these payouts will be the key to paying off some - if not all - of their debt.
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. Lenders have perfected the art of making the process as difficult as possible so you will give up on your claim. In fact, recently the Financial Ombudsman complained to the Financial Regulators about lenders rejecting PPI claims immediately without investigation, 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 are lenders behaving so badly? Very simply to try and make the process as difficult as possible, so you give up on your PPI claim and they can keep the money. After all, if you receive your third, fourth or even fifth letter from your lender refusing to discuss a complaint or simply rejecting the PPI claim as having no basis, wouldn't you give up?
Sometimes you can speed up the process considerably by using an experienced claims company to help you with 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 won't tolerate any silliness or obstruction from the lender.
Whichever way you choose to get your money back - the DIY route or using an experienced claims company - there's nothing quite as satisfying as paying off as much of your debt off as possible with that lender. Even better, if you can pay it all off using your PPI claims refund, you'll have the pleasure of knowing you stood up for yourself and got rid of an unethical lender who tried to cream off a bit more profit by pushing you further into debt.
by: Jane Edwards..
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