The ongoing PPI claims scandal is just one of many to have hit the banking industry in the UK, but how does it affect you? Many thousands of people have already successfully claimed back charges on mis-sold PPI policies, so can you make a claim? If you have taken out a mortgage, a loan or any other form of credit agreement in the last few years the chances are you will have been sold a payment protection insurance (PPI) policy, but did you need it, and were you sold it in a manner that met with the regulations? Here is a little more detail about the scandal.
What is PPI and Can I Claim?
PPI is a term that covers a group of insurance policies designed to keep up your monthly repayments on a loan or mortgage in the event you are made redundant through no fault of your own. Generally the policy will pay out for a year, and some also cover the holder for loss o work thanks to accident or illness. If you want PPI claims made simple then it’s easiest to say that the problem has not been with the policies themselves, but with the manner in which they have been routinely sold to borrowers by the lender.
Have I Been Mis Sold PPI?
At the time of granting you a loan the lender should have, as laid out in the regulations, explained your right to look around for the best PPI deal. Instead, many lenders were found to have led borrowers to believe that PPI came as part of a package deal, supplied by them. In other PPI claims cases consumers were sold policies that were of no use to them, and some were not even made aware that they would be paying into a policy. All of these are cases of mis-selling, and if they apply to you then you have a valid claim.
PPI Claims Made Simple
The best way to make you claim is to get in touch with an experienced PPI claims solicitor. Search for one online and you will find many options. Choose a solicitor with relevant experience in the field of personal claims, and look for one offering a no win, no fee deal; this means you will not have to pay a fee in the unlikely event your claim is not successful. Remember, it is your basic right in the eyes of the law to claim back charges on mis-sold PPI policies, so get in touch with a solicitor right away and get your claim underway.
PPI is an acronym that stands for payment protection insurance, but it has a few different names, depending on who issued it in the first place. It is a form of insurance cover designed to protect you if something bad happens which would prevent you from paying back your premiums on a loan or credit card. Sometimes people lose their jobs, get injured or fall sick and thus fall short on income.
PPI was born out of a need for people to be able to rest assured that their payments will be taken care of no matter what, especially now since the world economy is in the state it is. The prices for everyday items like food and gas is placing a huge amount of pressure on people’s paychecks and so the luxury items paid for on credit are usually the first things to suffer.
The idea of PPI is to protect your repayments. Say you take out a loan from a financial lender to buy a flat-screen TV. This company then offers you PPI at a set fee each month and you accept. This means on top of your monthly payments for the TV, you will also have to pay a small figure for the PPI. Then, if you are unable to make the repayments due to a specific set of circumstances, then the PPI policy may step in and cover them for you.
The problem is: PPI has been included alongside loans, credit cards and mortgages without the permission of the consumer, meaning they are paying for an often over-priced policy without even knowing.