subject: An Introduction To Ppi Insurance Claims [print this page] PPI or Payment Protection Insurance, is an insurance plan intended to cover the consumer when that individual may be unable to meet his monetary obligations. It is bought in conjunction with a big value item such as a vehicle, a house, or (formerly) when registering for a credit card.
PPI was usually incorporated as an element of a monetary package for the items listed above. Many consumers weren't even conscious they had bought it. The primary idea behind PPI was to cover those individuals who had become unable to do the job because of an accident or illness or wasted their position through redundancy. Sadly, it swiftly became simply a source of income for some deceitful financial institutions, leading to PPI insurance claims being submitted towards some of the U.K.s major loan providers.
Credit card providers like Capital One and Egg and other lenders and insurers (Alliance & Leicester, HBSC and Lloyds) were all found to have badly sold PPI during the last 10 years. Specially, insurance plans were sold to people who could not be covered by them. Those clients who were self-employed, unemployed, retired or had a health problem that permanently prevented them from working again were defrauded for millions of pounds. By some estimation, more than 27 million PPI policies were granted. Of those, 40% of the owners of those insurance policies were not mindful that they had bought them.
An investigative orders was issued by the Competition Commission in April of 2011. Changes the CC required in selling PPI were that details stating exactly what a Payment Protection Insurance is and the consumers options to either buy or don't purchase it must be plainly stated and provided in writing for them. Furthermore, PPI now can't be sold similar time like the credit agreement. In May of that year, the High Court ruled that all lenders should review their PPI plans and cover all customers that were inappropriately sold insurance plans. This judgment covers the years 2005 to 2011 and is still valid these days.
After thousands of PPI insurance claims were filed, the Financial Services Authority levied heavy charges against all the agencies concerned. Each provider involved was fined over 1 Million with Alliance & Leicester receiving much notoriety for their fine of over 7 Million. Since those fines and the High Court ruling, lenders established funds particularly for the compensation of their clients. Barclays Bank has itself prepared over 1 Billion for PPI insurance claims towards it.
If you were inappropriately sold Payment Protection Insurance, then you could have claims that will be worth thousands. To be able to navigate the laws pertaining to settlement from PPI insurance claims, it's best to enlist the assistance of an experienced claims professional. It's more than possible you've got PPI policies which you were never even informed you bought. Endeavor to get a company that works on a no win/no charge service so there is no charge to you before getting legal payment for your PPI insurance claims.
by: Papa Dudut
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