PPI is overpriced, difficult to claim on and often sold to the
wrong people. Citizens Advice Bureau has found:
- It adds between 13% - 56% to the cost of a loan
- Only 6% ever claim on PPI - 85% of claims are then rejected
- Sales staff have failed to explain the costs, added the
price of PPI automatically to repayment quotes and failed to
check customers would be eligible to claim
It's estimated that there are 20 million PPI policies in the
UK, so if you have a loan, a mortgage, or a credit card you could
have PPI.
We're giving you the chance to claim back the premiums you have
paid.
For further information call us on 0845 271 4005, or
click here to claim online.
...Read More
The Financial Services Authority, the regulator of
the country’s financial services industry, has announced that
it will be fining major banks and lenders up to £1M for mis-selling
payment protection insurance. If you have been mis-sold payment
protection insurance, you may be able to claim compensation
from your lender with regards to payment protection insurance
mis-selling for store cards, credit cards, loans and mortgages.
What is Payment Protection Insurance ?
Payment Protection Insurance (PPI) is a form of insurance
taken out to cover the payment of a specific debt. Traditionally,
a PPI policy is meant to cover repayments of the attached debt
should the borrower fail to be able to meet the payments due
to loss of income through redundancy, unemployment, illness
or disability. A policy may typically pay out after a deferred
period of 1, 2 or even 6 months, and continue to pay for up
to a year should the loss of income remain.
The most typical forms of PPI are Loan Payment Protection,
where your loan payments or more commonly the interest part
of the loan payments are met by the policy; Mortgage Payment
Protection, where your mortgage payments are covered; and Store
and Credit Card Payment Protection, where either your minimum
payment or interest payment are covered.
Both Accident, Sickness and Unemployment Insurance and Income
Protection Insurance are often included under the PPI banner,
although these are separate stand-alone insurance products meant
to cover a range of debt commitments.
What are the issues with Payment Protection Insurance ?
Due to the competitiveness of the financial industry, lenders
are having to reduce their lending rates to attract new and
retain existing customers. This is causing a drop in revenue
due to lenders having smaller margins on loans, credit cards
and mortgages. PPI, although sold as a safeguard for borrowers,
may just be seen as a way for lenders to increase their income
from selling loans, credit cards and mortgages.
Some PPI policies offered by lenders may be unsuitable to
borrowers in certain circumstances. Policies may not be suitable
for the self-employed if they only cover redundancy. Some are
so full of exceptions and exclusions that borrowers are often
unable to make a claim if the worst does happen.
PPI policies sold by credit card companies, banks and lenders
can be overly expensive and are sometimes forced upon the borrower
as part of the approval process or hidden within the debt repayment
schedule. Debts may be increased by up to a third when factoring
in PPI payments.
What is Payment Protection Insurance mis-selling? How do
I know if I have been mis-sold Payment Protection Insurance?
The plain fact is that a number of PPI policies sold to protect
borrowers from their debt in reality offer no protection at
all and are simply a revenue stream for the lender. Borrowers
may be unaware they are even taking out PPI as they go through
the application process.
Lenders may offer low rates that are only commercially viable
to them with the addition of a PPI policy and the may also mis-sell
PPI policies with sweeping statements such as 'Will pay off
your debt' or 'Will safeguard your family' when in fact the
product they are selling may be completely inappropriate to
the borrower and offer no such security.
Can I claim compensation for Payment Protection Insurance
mis-selling ?
If you feel that, when you were sold your PPI policy, the
salesperson failed to explain exactly what you were purchasing,
or you were forced to take out the PPI policy by your lender,
you may be able to claim compensation. Also, if you were sold
an unsuitable policy while self-employed, unemployed or retired,
you may have a case for mis-selling as your circumstances at
the time of sale may mean that you cannot claim on the PPI policy
in certain circumstances.
Where can I get more Information and Advice ?
We have collected together the latest news and views relating
to payment protection insurance here.
Alternatively call us on 0845 271 4005 where
our staff will be happy to answer your questions.
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