Payment Protection Explained
Payment protection insurance, commonly referred to as PPI, is a type of insurance applied to credit situations or to those that take out a loan. The reason that payment protection insurance is sought after is to protect a consumer if tragedy were to strike. If a borrower would pass away, become injured, lose a job, or be unable to work, the borrower does not incur the financial wrath that can be bestowed upon them by loan collectors. This service was used as a way to protect the consumer and leave them in a better and more secure financial position because they had payment protection insurance. Usually, this payment was deducted on a monthly basis or included in the monthly loan payment.
Problem With Payment Protection
Mis-sold PPI can be a huge problem for individuals. There were millions of cases in the UK alone in which insurance companies mis-sold PPI and they are entitled to the compensation because of it. There are several ways that this mis-selling can occur. A bank my bully or pressure the individual into purchasing the payment protection insurance when they had no desire to do so. They may have been told it was not optional and they had to take it. The lender may also have failed to explain costs that occurred on the bill as well. You may actually have been paying more for your payment protection than you agreed to. This is a false misrepresentation by banks. Further mis-sold PPI can occur when the bank does not tell you the terms clearly or the exemptions to the rule. For this reason, it is important that you know this and know that you have options to reclaim PPI you purchased.
How To Reclaim PPI
You can reclaim PPI by utilizing a reputable company that specializes in guiding you through the process of securing the monies afforded you. One great location for this is www.connectedclaims.com. Here you will find all the information you need to ensure that you get the monies that you are owed and make reclaim PPI in the appropriate way. Examine their website and look around for information that can be helpful to you. The site is literally a fountain of information for you to utilize as you learn more about payment protection, how to avoid being taken advantage of, and how to reclaim PPI if you are owed it.
How Debt Advice Can Be Helpful?
PPI stands for Payment Protection Insurance which is a controversial financial product that was widely sold during the early twenty-first century, although it is now less widespread. As the name suggests, payment protection insurance enables you to insure your debt repayments. The borrowers who are opposed to accident, illness, unemployment or death, circumstances are covered by PPI.As compare to other types of insurance, PPI is different like home insurance, where it can be quite difficult to determine whether it is right for a person or not. The people who fail to keep up with their debt repayments, PPI also offer peace of mind and security to those people, until such time that money will no longer be a concern.
There are two types of PPI-monthly premium policy and single premium policy. According to the single premium policy, the premium is calculated for 36 to 60 months and added to the loan amount. A single policy premium cannot be cancelled and the consumer often ends of paying interest for the PPI, at the same rate as he would pay to the main loan. This type of PPI is usually common in cases where people go for mortgage loans. Recently it has been found that many companies have mis-sold PPI to their customers, leading to major fines for top UK businesses.
There are several scenarios in which PPI may have been mis sold. If you have paying for a policy that includes unemployment cover, and you don't need unemployment cover, then you may be able to make a claim. If you were sold a single premium loan policy, meaning that the entire insurance cost was added as a lump sum at the beginning of the contract, and you changed it of left it part of the way through, then you might be eligible to receive a partial refund.
Mis-sold PPI has been one of the biggest scams to hit the UK financial sector, and the scandal turned into a media frenzy once it was found that not only were small lenders committing this crime, but well known high street banks were found guilty of mis-selling PPI. The Financial Services Authority (FSA) have stated that they expect to receive 2.75 million complaints relating to mis-sold PPI over the next 5 years. If you're one of them? Don't let your lender keep onto money which is right fully yours. Claim Back mis sold PPI now.