PPI is an add on to a loan to help the customers with the repayment of their loans in case they are unable to repay it due to some illness, accident, loss of job or death. It is a good supporting product to the loan if the customer has been informed in advance and is allowed to make a decision based on facts not on omission or coercion.
Most of the customers who took out a loan or credit card ten years ago were offered or sold a PPI policy at the time you took out a loan, mortgage, credit insurance, unemployment cover, mortgage payment protection plan, credit card or other credit. It might have been under the name of loan protection, personal loan protection or loan repayment insurance. The policy is thought to be mis-sold when the customer was not made fully aware of any major limitations or exclusions, did not understand the true cost or was made to think that the policy was mandatory when it was not so or were effectively pressured into taking the policy. Most of the time customers were not even informed that they had this insurance attached to their loans. Many policies turned out to be completely worthless when the need arose and not provided the expected cover. Furthermore many people have been sold a policy without being made aware of the cost or terms made clear fully or partially, thus they end up spending a lot of money on insurance they will never need or will never be able to claim on. Any loan contract containing words like “loan protection”, “payment protection” or “loan care” or anything similar, will more than likely be a mis-sold policy. Most of the banks and lenders that mis sold PPI are seeing better profits now than ever before while the customers paid off their debts with their tax payments and now they are able to borrow money at the lowest rates ever, just 0.5%. Then they charge their customers an average loan rate of 8%, credit card rates around 18% and mortgage rates circa 6%, making them staggering profits and leaving theirpoor customers with mounting debts.
The Financial Services Authority (FSA) found that almost 80% PPI policies were mis-sold. Thanks to the high court ruling which has made the banks and other lenders to look into all the policies they have sold and refund the customers with interest. TheFSA also found that despite the repeated warnings many lenders are still not treating their customers fairly.
It is true that you can apply for a PPI claim without the assistance of a solicitor or a PPI Claim Firm, it is easier to take help of a PPI assistance team or request a PPI specialist. We’ve already got money back for all of a lot of victims of mis-sold PPI and if you’ve got a case, we’ll do the same; strictly on a NO WIN NO FEE basis. There might be a time limit applicable to your case so do not delay. Contact us today.
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