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.
http://www.which.co.uk/ppi 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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