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Payment Protection Insurance and more on PPI Claims

You might have heard a lot about PPI claims. PPI or Payment Protection Insurance is a product devised by financial institutions that covers repayments on loans, credit cards acquired by the customers. This is also reckoned as credit protection insurance but it is not the typical credit card cover or some kind of income protection. PPI claims are made to cover the client against obligations like ill-health, unemployment, accident or untimely death.
PPI reclaims helps and protects person during financial obligations. It removes the financial worries for the insurer’s family. This may be in the form of a loan or an overdraft. Banks and other credit providers sold this debt as an addition to loan or overdraft. Loan or overdraft payments are covered by PPI for a minimum period of 12 months.
There are times when many PPIs have been mis-sold with loan, mortgage, credit card or hire-purchase agreement. There are several ways in which PPIs have been mis-sold which includes staff using high pressure selling techniques or misleading people.

If any person proves that PPIs were mis-sold then he is eligible to go forth with PPI reclaim and he will get back all the premiums paid with interest. PPI can be reclaimed by the use of Solicitor or using a claims management company. Also, PPI claim can be calculated with the help of PPI claims calculator. If the loan is still being repaid, then settlement of premium would reflect the future costs of PPI as well as the interest charges are written off. If the borrower of PPI at the time of claiming PPI, owes money to the lender then lender have a right to offset PPI refund against the debt. If any PPI value is left then the balance will paid to the Solicitor or the borrower.

PPI claims calculator can help you calculate the amount easily. The price of PPI can vary accordingly depending on the lender. Premium on PPI may be charged on a monthly basis or Single Premium Policy basis. In Single Premium Policy, full PPI premium may be added to the loan so as to cover the cost of the policy. PPI premium with lump sum loans are paid with the cost from 13% to 56% of the loan amount. Calculation of PPI on credit cards is different from lump sum loans. As initially there is no sum outstanding and also the customer is not confirmed about using their credit facility.

You can find out more about PPI Claims,
PPI Claims Calculator – Payment protection insurance, or ‘PPI’, is insurance designed to cover loan, finance or credit card payments in case you are made redundant or are too sick to work.
In itself, PPI isn’t a bad product. However, claims are being made due to various mis-selling practices by lenders, agents and brokers that have been rife across the financial services sector for years.
The Financial Services Authority, or ‘FSA’, issued a new handbook at the end of 2010, identifying the most typical mis-selling practices. The handbook laid down guidelines for lenders to compensate customers who had been mis-sold PPI.
The banks initially challenged the legality of the FSA’s measures, but ended their action in May this year, paving the way for thousands of PPI reclaims.
Some of the worst mis-selling practices related to ‘single premium PPI’, which was banned by the FSA in May 2009. This was where PPI was added to the loan as a one-off premium at inception.
Single premium PPI was an especially bad deal for several reasons, which were seldom revealed or adequately explained to customers.
Firstly, it was frequently automatically included in the overall loan quotation, instead of being explained separately, meaning that customers were often unaware of the policy.
Secondly, it was poor value for money. Alternative PPI was usually available much cheaper elsewhere. However, customers were often given the impression that the product was compulsory.
Thirdly, customers with single premium PPI were rarely entitled to a pro-rata refund if the loan was repaid early, making this type of PPI unsuitable for those likely to re-finance.
Fourthly, interest was payable on the entire premium from the outset.
Finally, the term of the cover was often shorter than the loan itself, meaning that customers were unprotected if made redundant during the latter part of the loan.
In essence, single premium PPI was the most glaring example of a bad deal for the consumer, in a market in which mis-selling was rife.
For more information on PPI refunds, contact the Claims Connection managed by Winston Solicitors LLP on 0845 009 6899, or visit

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