subject: Ppi - Were You Mis-sold Payment Protection Insurance? [print this page] For those who have any form of mortgage, credit card or loan and are living within the UK, it is very important that you check whether or not you could have PPI, also known as Payment Protection Insurance. You might 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 usually means is that you aren't only repaying your loan, but an additional insurance, known 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 situations, and in the event that you are unable to repay it.
Nevertheless, the problem is that a great many people have been mis sold payment protection insurance. A number of people were told that it was mandatory in order for them to be granted the loan, while others were simply not told the specific fees. Many people might say that PPI is helpful to have, but there are some problems with it. First of all, PPI claims have some of the smallest payout rates for any type 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 expires.
Because of all of this, many individuals 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 within the premise that they have mis sold payment protection insurance and so have set a precedent for claims to be refunded. The risk to the companies and banks is the fact that, should they choose not to refund someone's PPI, they stand the chance 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 currently quietly paying off individuals who claim that their PPI policy was sold to them unfairly. You can consult your bank or lender yourself or make contact with a claims company who will do the same thing for you for a fee.
Try and have all of your information ready, and remember what the loan broker told you at the point that you purchased the service - did the make any promises that they should not have, and did they make the expense clear? If not, then claiming the money back may be a probability.
by: Sharon Dawkins
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