Until recently, many consumers were still unaware that they could file a PPI Claim. Many consumers do not even know what it is, let alone that they have the right to proceed. When a borrower takes out a mortgage, other loan or gets a new credit card, they are usually offered the option of also purchasing payment protection insurance.
Added: September, 25th 2011
File size: 356.14kb
Tags: ppi claims, ppi claim, payment protection insurance
Join the thousands of people who have already claimed back their money because they were mis-sold a Payment Protection Insurance (PPI) Policy with their loan, credit ...
Until recently, many consumers were still unaware that they could file a PPI Claim. Many consumers do not even know what it is, let alone that they have the right to ...
If you have been misled in some way, and are looking to get your cash refunded, then a PPI reclaim need to be your next move. Payment Protection Insurance, otherwise recognized as PPI can be really a ...
You can borrow either secured or unsecured loans with personal loan. It is easy to apply for personal loans through online lenders. But before applying for the same it is very important to understand ...
Once you know that you are eligible to claim back PPI, the next step that you will need to take is to fill in the relevant documents that will ask why you are making the claim.
Definition of a PPI Claim
Until recently, many consumers were still unaware that they could file a PPI Claim. Many consumers do not even know what it is, let alone that they have the right to proceed. When a borrower takes out a mortgage, other loan or gets a new credit card, they are usually offered the option of also purchasing payment protection insurance. It is supposed to function sort of like an insurance policy for the loan and in the event that the borrower cannot pay, the insurance will make payments for them. This coverage is very expensive and there are so many stipulations that rarely does the insurance really pay any payments. This recently came to the attention of the Financial Services Authority and they ruled that these policies are not legitimate. Consumers are now eligible to file a PPI Claim and have their money returned. These payment protection plans have been very popular over the last decade and many consumers have paid inflated amounts of money for this supposed protection. By filing a PPI Claim many consumers can have this money returned. These payment protections services are suppose to pay in the event that the consumer/borrower has extenuating circumstances like becoming ill or losing a job, and are unable to make their scheduled payments. The insurance is supposed to kick in and make payments on the loan until the borrower's situation has returned to a normal state. In reality, the plans do not offer the type of coverage that they say is available. Therefore, the Financial Services Authority has made it possible for borrowers to file a PPI Claim and have this money returned.
To simply state that the coverage is expensive is not saying enough. A borrower can expect to add more than 50 percent to the original loan amount by including payment protection plans. This is a huge amount especially if you take the amount of interest being paid into account. The real trouble is in the fact that policies are very limiting on how and when a consumer can collect these payments. For the businesses this means that they are charging interest, late fees and payment protection fees. Because of all the exclusions consumers are rarely benefited. For homeowners that are already paying more than ten percent of their income on a home this can add up to some very large amounts of money. But now, borrowers can file PPI claims if they felt that they were pressured into purchasing the insurance or were not made aware that they could opt out.