subject: Payment Protection Insurance Claims [print this page] For those who have any type 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 may have never heard of it, but should you have debts then you may well be paying hundreds of pounds for it. If you signed on for a loan which 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 insure you in the event that you suffer an accident or injury that inhibits you from repaying your debt, it promises to repay monthly payments of the debt, under very strict circumstances, and in the event that you can not repay it.
However, the problem is that a great many people have been mis sold payment protection insurance. A number of people were advised that it was required in order for them to be granted the loan, and others were simply not told the specific fees. Many people might say that PPI is useful to have, but there are several problems with it. Firstly, PPI claims have some of the lowest payout rates for any sort of insurance; the firms very hardly ever pay when people thought they might. Secondly, many policies only cover you for a period of twelve months, causing you to be high and dry when this coverage expires.
Because of all of this, many people have claimed that their payment protection insurance was sold to them under false pretenses and have tried to reclaim the charges back, with great success in many cases. The FSA or Financial Services Authority in the UK has been fining many high street companies under the premise that they have mis sold payment protection insurance 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 refund someone's PPI, they stand the chance of being sued. Should that lawsuit succeed a precedent would be set which might permit a large number of people to request their money back.
Therefore some banks and lenders are presently quietly paying off folks who claim that their PPI policy was sold to them unfairly. You can talk to your bank or lender yourself or speak to a claims company who will do the same thing for you for a fee. Attempt to have all of your information ready, and keep in mind what the loan broker mentioned at the point which you purchased the service - did the make any promises that they shouldn't have, and did they make the expense clear? If not, then claiming the money back may be a possibility.
Payment Protection Insurance Claims
By: Sharon Dawkins
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