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Are You Confused About Missold PPI?

Recent revelations have shown that an increasing number of consumers have been confused about payment protection insurance (PPI) and mis-sold PPI. Although the topic has been widely discussed in advertisements for claims management companies and news reports, many of these fail to explain the basic facts about mis-sold PPI, resulting in a mass confusion and unsuccessful compensation claims.

What is PPI?

Payment protection insurance is a form of protection offered with lending products such as mortgages, loans, catalogue credit purchases, credit cards or store cards. It serves the purpose of protecting payments for one year in the case of accident, sickness or unemployment, generally paid either as a one-off fee or as a smaller payment with each repayment.

Not all PPI is mis-sold; for many it is a valuable form of insurance which can help protect their loan repayments in unfortunate circumstances. But the mis-selling of PPI was an unethical scandal which affected millions, resulting in lenders being ordered in 2011 to repay billions of pounds.

How was PPI missold?

The mis-selling of PPI mainly occurred over the past two decades, although some claims are made on PPI sold before the 1990s.

Payment protection insurance was mis-sold when:
It was added to a lending product without the consumers knowledge
The consumer was misled into believing PPI was not optional, or would help with the approval of a loan, credit card or mortgage
The terms and conditions of the PPI policy were not fully explained
The consumer was self-employed or unemployed when they were sold the PPI
The consumer was medically exempt from the policy at time of its sale

The mis-sold PPI scandal happened systematically in many high street banks and lenders. PPI repayments generally see customers receiving 15-30% of their total loan balance back; a payment often worth thousands of pounds for each claim.

There are many complex restrictions around making a mis-sold PPI claim. You can make a claim after the loan has been closed, providing your account has been active within the last six years. You can also make a claim on open accounts and accounts which are active or have been active within the last six years if your PPI completely has been paid off. There are also ways to claim back mis-sold PPI if you do not have the appropriate paperwork evidence, and even if your credit company has since been taken over.

How can I claim back missold PPI

As claiming back mis-sold PPI is a complex process you should allow an expert claims management company to handle your claim. They should advise you on whether or not you are entitled to compensation for free, before undergoing the complex claims process on your behalf for a no-win, no-fee basis.

ABC are a trustworthy claims management company who claim back around £1 million of mis-sold PPI every month. Speak to their PPI advisors to find out for free if you are entitled to make a claim.
Claim your mis-sold PPI with ABC

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Extremely careful about PPI Claim

In today’s materialistic world, It is a tough job of balancing our daily expenses against the increasing prices of necessary goods. People do not like to take loans but it’s one of the easiest ways to meet our requirements. Also the loans are available for every conceivable requirement.

Getting a loan has also become simpler while its repayment is still one of the hardest. Payment protection insurance(PPI) is one of the safest solutions for this problem. With PPI, the borrower needs to pay a certain fixed amount each month as installment. And if due to some contingency the borrower is not able to pay the installment, PPI claim covers the payment for a predefined fixed period which is usually of 12 months.

The PPI claims mainly help when the borrower is unable to pay due to unforeseen loss of job, or critical illness or accident. The period is considered to be long enough for borrower to get a new job or get occupied in some other way of producing an income. Loans are covered even without any collateral.

However one must be extremely careful while purchasing a PPI as many claims have been rejected because of policy exclusions and clauses. Thus it is important to go through the exclusions and clauses before purchasing a PPI policy. Mis-selling of PPI policy is also quite prevalent. A policy is considered mis-sold in the event the borrower was not informed about any or all exclusions like any pre existing disease not covered under policy.

PPI cover is optional. The Loan Adviser should also inform the borrower that the PPI cover expires much before the complete payment of loan. There is a time limit of 6 years for making a PPI claim. However if the documentation has been kept for any policy taken before 6 years, a claim can be made. The consumer can claim on a multiple loan basis where PPI was included.

The consumer can directly apply for the claim or appoint a representative to make the claim for them. There are many professional companies with trained lawyers to deal with such matters. All the matters regarding financial services are regulated by the government watchdog The FSA and the banking Ombudsman. The consumer can also refer directly to the ombudsman for assistance with claims.

PPI claim services are taken from the various forms of Payment protection insurances. UK PPI claims can help you smoothen out your unpaid bills today given the case we’re you’re helpless.

How to claim PPI compensation - from Which? Do you have Payment Protection Insurance (PPI)? Thousands of people have been mis-sold this financial product and Which? is here to tell you how you can get your money back – for free
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