Mis-Sold PPI and Ways of Claiming It

It’s not easy to answer if you have a mis-sold PPI especially if you want to re-claim it. The Financial Conduct Authority (FCA) recently forced the credit providers to repay their customers of premiums from mis-sold payment protection policies and the payment interests taken fraudulently from consumers. PPI serves as a guarantee to creditors that the borrower will pay even if there is job loss or accident that leads to non-payment of existing loans. Nonetheless, some people take advantage of this protection that they sell this for their own profit and not to be of service when the right time comes. In this article, you will be enlightened on how you will recognize mis-sold PPI and how you will claim it.

What Is PPI?

Payment Protection Insurance (PPI) is actually a product alongside loans and credit cards that will shoulder repayment of debt when you are in situations as per the agreement. PPI enables consumers to insure repayment of loans when the borrower dies or becomes disabled, faces situations that prevent them of repayment or losing a job. This is different from income protection insurance, which is not specific to a debt yet covers any type of income. PPI can be purchased from banks and loan providers as add-on to the loan or the overdraft product. Normally, the lenders or agents convince the borrower to avail of PPI with their loans but forcing them to avail can lead to mis-sold PPI. Some do not even divulge the full term and conditions prior to offering PPI, which can also lead to mis-sold PPI. If you feel that you are being forced to get the PPI with your loan, then you are probably headed for an unsure claim.

Purchasing PPI

If you really want PPI for repayment of debts, then you need to work on your research. PPI does not cover the first 90 days after you have stopped working. Some illnesses are also not covered by PPI and pre-existing conditions do not apply as well. Retired clients are also not eligible for PPI. It’s not actually for sale but it comes along with your loan application. Under the Central Bank’s Consumer Protection Code, the lenders should quote for it separately on your loan and it is important to use separate application forms for the insurance and the loan. Take a closer look at the contract you will be signing, as this will signify your future payment policies. Nevertheless, do not let your excitement get you, as some may be offered for the agent’s own benefit and not yours. You should also check the following before taking out the PPI:

  • Total Cost of Insurance. Even though the monthly insurance seems cheap, this can add up over the loan term.
  • Policy Conditions on Coverage and Exclusions. If you are suffering an illness that is not covered, for instance, the policy does not pay anything for a claim. Some does not include the redundancy cover.
  • Payment upfront. Some lenders do add the full insurance cost into the original loan. This will cost more since you are paying the interest not only on the loan but also on the premium as well.

The PPI costs around 10 percent of the loan repayment. For credit cards, the cost is about 70c per 100 euros. Some have different policies in cases of PPI. If you pay off all your credit card balances monthly, then you can pay for some coverage that you do not need such as what is cited on this website http://www.haveigotppi.org.uk.

How to Make PPI Claims

Any person sold with force when it comes to PPI can make claims. The borrower should be given full explanation especially when it comes to the terms and conditions. In several cases, this was not done and the customer was left to believe that they need to take the lenders’ policy. If you have experienced this, you can claim back the PPI policy fees. Also, if you do not know that you had PPI along with the loan, you can surely claim the PPI. It is important that the customer should be informed. For more information, please visit this website www.haveigotppi.org.uk. They have first-hand information on PPI claims and coverage.

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