Payment Protection Insurance and Reclaiming
What does PPI stand for and exactly what is it?
PPI is short for ‘Payment Protection Insurance’; it was designed as a premium insurance policy which will assist a debtor pay back certain financial loans (such as credit cards, home loans and other loans) in the event of loss of work due to illness, injuries or unemployment; the actual idea in itself seems like it could be ideal for most people in these volatile financial as well as employment times. However, a lot of companies mis-sold this to customers under a false premise.
What does mis sold payment protection insurance mean?
This is usually a term which was given when loan providers (mainly banks) didn’t follow the guidelines when selling PPI to potential consumers. Numerous borrowers have been pushed into acquiring these types of overly priced policies by being told they were mandatory to acquire their mortgage. Other issues were people whom bought the insurance were not told of restrictions and they also weren’t informed of the price that would be added. Typically, the policy rates would end up being overly priced, after which included with the actual loan. This means the banks would be making even more money, as you would be paying interest on the PPI along with the loan.
It has been estimated that more than 2 million consumers had been mis sold payment protection insurance. Not only that more recent reports say that of clients that filed to reclaim premiums, they are automatically turned down. Many uninformed consumers do not realize they have further recourse in their PPI claims. This benefits the financial institutions because they do not have to repay the money for customers whom do not pursue the matter with the FOB.
What else could you do if you were mis sold payment protection insurance?
The most important step will be to first be sure you have a valid claim. Once you have confirmed this, collect all required paperwork, and begin the actual filing process with the bank or lender. Expect to have your initial request denied. Once you get the letter denying your claim, you have the option of contacting a firm that are experts in reclaiming money or else you can forward your request to Financial Ombudsman Service.
Exactly how far back can I go to file a claim?
If you have been mis sold payment protection insurance within the last 6 years, you will be able to file a claim. Something more than that might be hard, as it may be hard to get the correct contracts and to keep in mind every detail of what you were told. If you are in doubt you can always make contact with a specialist to learn more.
If you believe you fell victim to mis sold payment protection insurance and want more information and tips on ppi claims please visit Simplicity Claims – specialists in reclaiming PPI Premiums.