CONSUMERS CLAIMS PPI DURING THEIR FINANCIAL DIFFICULTIES AND THE SUCCESS RATE MAKE THEM RELY ON PPI CLAIMS

In recent years the many countries of the world have faced economic downturn. Some of the countries got bankrupt where as other were bailed out. United Kingdom was one of those countries which faced the crisis. The worst effect was of debt crisis, which means that the banks, financial sectors, groups or individuals who provided loans did not recover it and faced extreme financial difficulties. The debtors were not able to pay their debt and if they kept their asset as a security then the value of that asset fell so dramatically that only minimal amount of loan could be recovered.  Now the economy has sustained and debtors are going for Payment protection Insurance (PPI) so that when they are not able to pay monthly interest or repay principal amount then this can be done by PPI claims. Debtors claims PPI at any time, within the specific duration of 

Payment protection insurance.

Payment protection insurance is one of the insurance products that are taken up by debt holder which can by in any form, like mortgage, credit card payment, home loan or business loan. This insures the consumer that their repayment of interest and interest amount will be done with the insurance provider company at the time when the consumer is unable to do so.  if the borrower decease, get ill, get redundant or is jobless or in extreme financial difficulties then PPI claims will release the stress of repayment and interest payment. Once the consumer claims PPI then the creditors are bound from calling directly to debtors, this is also relief for debtors as the insurance providers directly co ordinates with the creditors.

There are chances that the borrower will face mis sold PPI as in recent years there has been many scandals in United Kingdom regarding mis sold mortgages. The reason of mis sold is that the borrower was told that buying Payment protection insurance is part of regulations regardless of the requirement of borrower. It is advisable that the borrower should take a complete knowledge of PPI and see If it is desirable or not. If you think that you are wealthy enough to make all your monthly interest payments and have enough liquid amounts to repay your loan then do not go for PPI but take advice of expert financial consultants.

There are many companies in United Kingdom which have PPI as their insurance product but the borrower should seek for the company with the best output. Some companies charge fees if consumer claims PPI, some companies have policy of No win, No fees and some companies do not charges fees at all. The procedures of PPI claims are very easy and affordable and benefits are higher than cost.

An insight to PPI and PPI claims

To begin with this one way discussion, let’s just first look into what the term PPI means as most of you may be unfamiliar with it.

PPI is basically an insurance plan or insurance cover which is provided by financial institutions along with various kinds of loans and financial instruments for the purpose of providing an alternative to an individual, if the individual due to some unforeseen becomes incapable of meeting the monthly repayments required under the loan obligations.  

Similarly many people who have such policies are unaware of how to file effective PPI Claims which will be discussed here later.

Are there any premium payments involved in PPI?

PPI is offered by both banking and other financial institutions. Most of the banking concerns provide them as a part of the loan package but in many cases where people go for such insurance from other financial institutions, they will surely charge you monthly premium payments.

When can a person exercise this insurance plan?

Individuals who have availed such insurance can claim or ask their service providers to help them out in their monthly repayments in case they face an accident, face illness, lose their job or some other reason. Important thing to known here is that the reasons may be plenty and may vary with the terms and conditions as have been mutually agreed upon by the service providers and their clients.

PPI Claims and reclaims

There may be two scenarios in case of PPI Claims, one is that the person was mis-sold such PPI and the other is that the plan bought did not prove fruitful in any way.  In the first case where the PPI which was validly sold to person proves useless in the end, a person can reclaim it from the lender. Here the lender who has validly sold such policy can exercise his discretionary power and may repay the full amount or only a part of the reclaim.

The second case is the case where a PPI was mis-sold. Mis-selling of ppi can be in various forms which need to be studied before going for a PPI claim. Many cases have been seen in UK where such plans were sold to people by asserting that it’s a mandatory part of their loan package and this has been strictly prohibited by law. It is the duty of such services providers to look in the circumstances of the individual to make sure that an individual needs such plan and if it is sold without such need, then it will count as an invalid sale and will give rise to PPI claims. Similarly another duty which has been implied by law on services provider is to make their clients clear about the different provisions and payments which they will require making. In case of any hidden provisions, premiums or charges, the lenders will be held liable and they will have to compensate their clients.  There are many other aspects which you people need to learn about PPI and it’s always better to consult some neutral financial expert before you get involved in such insurance plans.

How to go about insurance claims and ppi claims

Successful claims for any insurance policy are never easy to make as the insurance providers make you go through a lot of formalities and procedures which stresses your nerves.  Every year all over UK, insurance claims are filed for a large variety of purposes like Accidents insurance claims, PPI, dental insurance, life insurance etc.

Types of insurance claims and awareness to clauses:

Accidents claims are filed in various shapes depending on the policy you have taken e.g. car accident claims, road accident claims, motor cycle accident claims, whiplash accident claims and work accident claims etc. Every insurance policy has its distinct features or clauses which are pre-decided between the policy lender and customer but the fact is that most of the customers are unaware of the implications of various clauses. The aforementioned fact makes a policy taker disable to draft a solid case for filing a claim and they are manipulated by policy lenders which results is an insufficient compensation. So it’s mandatory for every customer to be fully aware of the policy clauses so that they can file strong Accidents insurance claims.  Similar is the problem with people who take PPI policies as most of them do not even know whether a policy is required in their scenario or whether the policy is beneficial in their case. Having said that, it’s a proven fact that many of the policy takers do not possess the knowledge or skill to understand the procedures and formalities of filing a claim and this is where the role of expert solicitors or professionals comes into play.

Steps for smooth processing of insurance claims:

The best way to go through a simple and sleek process of claiming compensation for insurance policies is to hire skilled and well reputed solicitors who are expert and qualified in this domain. The first thing to understand here is that Accidents insurance claims and PPI claims are both insurance claims but are somewhat different in their implications and for this reason you need to hire consultants who specialize or are experienced in these specific domains. Reason being that an accident claims consultant though may be qualified to deal in ppi claims, but may only have a rich experience in one of them.  Still you can find many experts in UK who have the experience in a variety of cases and they are the best choice for any of your claim. 

How to Reclaim Mis-sold PPI in UK

Mis-Sold PPI has showed the way to millions of successful PPI claims in last 10 years, except that what comprises “mis-selling” of PPI in particular? It is mostly when you bought a payment protection insurance policy either misleadingly or even sold a policy where you perhaps not have been competent to claim. You probably not identify that you have purchased the policy. PPI approaches in lots of appearances on numerous products. It possibly described loan or credit security or accident, illness and unemployment insured. Since it is mostly sold as requirement, a few lenders and banks inform clients that if you have no payment protection insurance you cannot take loan, only point out probably in the small print.

It is very common and happening all over the place. It is not just limited to the sub-prime lending market; even the trusted brands have done this. There are many companies which help people in reclaiming UK PPI. You just have to leave some basic details about the agreement you are concerned about and someone will be straight back in touch to give some help and advice.

If you have been sold PPI policy but you are unemployed, retired or even student, your PPI will be invalid. PPI policies are legal just for those who are in employment and the borrower or insurer must have ensured that you are employed when they sold the policy.

Your loss of income due to accidents or sicknesses, involving mental illness and back trouble, which may be the reason of thousands of people off work every year does not cover by most policies. A lender must inform you that sicknesses like these, and other circumstances that possibly will keep you off work, will not be insured.

People can reclaim PPI by contacting insurer in writing. The financial investigator will not come across your claim except you have used the complaints process of the firm before you are in disagreement with.

This money has created two letter patterns that will assist you to complain, contingent upon your situation. You just have to download the letter and remove the part that is inappropriate and adjust it to your personal necessities and send the letter via registered post so you have evidence that it has been obtained.

Mis-Sold PPI: How to Claim

When people take loans of any sort, i.e. whether consumer loans or corporate loans, there is a high probability of being sold the insurance policies made to cover your loan payments in case you become unable to pay your loan back.

 It is a broader term used for different sort of insurance policies, but basically the idea behind it is simple; when you take a loan you have to pay it back and if due to some unforeseen circumstances you become unable to pay it back, this policy will enable you to cover your payments in a timely manner. It usually covers your payments in an event of involuntary idleness, like you losing your job or not getting a job, but sometimes also covers your payment in events of illness or accident. Due to this uncertainty attached with the repayment of loans, they are usually sold along with the insurance.

To find out whether you have been sold PPI, go through all the paperwork which was done at the time of taking loan. If you have been sold the policy it must be somewhere reported on the contract papers. If you do not have the contract papers with you or are unclear about anything, then you must contact your lender or the finance sponsor. Given below is a list of questions that will enable you to identify that you were mis sold PPI, if you have negative responses for these questions.

Although the idea behind the policy was to facilitate the borrowers, some lenders and the finance sponsors used it for their benefits. The most common reasons or ways of mis selling the policy are as follows:

·         You were told that the acquisition of the policy along with the loan is mandatory

·         You were advised to take this policy so that you end up getting more loan

·         Sometimes it is added in the contract without your knowledge of it

·         You were retired, i.e. above 65, temporarily unemployed, not self dependent, i.e. may be below the age of 16, or had any other health related issue

·         You already had other loans

To facilitate the borrowers and save them from any further damage the Financial Services Authority (FSA) had made some guidelines, which all the lenders and the issuer of the loans and insurance policy have to follow. If anyone violates these guidelines, they will be penalized and the borrowers can claim PPI policy. The borrowers can go through the guidelines and then determine if they were mis sold. On being mis sold the policy they can first contact their lenders on their own and try resolving the issue. If this fails to work then they may formally PPI claim charges back with the help of legal advisors. 

Mis-sold Payment Protection Insurance (PPI)

The recent influx of mis sold Payment Protection Insurance claims have raised questions towards the ethical standing of many of the financial institutions, insurance brokers and lenders.  When the word of UK PPI scandals broke out in the recent years, many borrowers became conscious of the fact that they have been mis sold the UK PPI. As a result, many compensation claims were filed against the responsible authorities such as the banks. In order to have a successful claim it is important to know that how have you been mis sold the insurance policy.

In today’s competitive world almost everyone has taken some sort of loan, sometimes to fulfill the basic and justifiable needs, other times to fulfill their luxurious needs. However, repayment of the loan is one important factor to keep in mind. Failure to make the payments on time can have serious repercussions and so policies like Payment Protection Insurance were made to help the borrowers in repaying their loans.  Basically this policy covers your payments when you are faced with involuntary redundancy, i.e. if you lose your job or sometimes when you are ill, in such a situation it is not possible for the borrower to return the amount in a timely manner.  

The successful completion of the mis sold PPI claims vary from case to case and so it is important to know as to how the policy was sold. There a number of ways to mis sell the policy. Some of which are discussed below:

·         Unaware of the policy being sold: while you take a loan, the insurance policy is added to your contract without you having knowledge of it. If you are unaware of the fact that you have the insurance policy along with the loan, then there is a high probability of being mis sold the policy attached with it. But before making a claim it is prudent to be sure of it, and for that you should first go through the contract papers and try to find out if you have actually been sold the policy. It must be stated somewhere on the papers in case of being sold the policy.  

·         Acquisition of the policy is mandatory: when the brokers emphasize  that you are not entitled to receive a loan just because you are not signing up for the policy or that acquiring the policy might help you in getting greater amount of loans, then it is an indication that you can successfully claim your money back.

·         Other times the brokers’ mis sell the policy by not disclosing full information in front of the customers when it is indeed possible for them to buy it on cheap rates.

Why Many People are Filing PPI Claims

Most of the people who took loans over the last decade prefer to register Claims PPI (Payment Protection Insurance). Mostly recipients purchase PPI when they take out a loan. On the other hand, many consumers have been deceived about getting this kind of insurance on a loan. There are few very common malpractices that lenders have been guilty of for some years now. One of the common ones is miss-selling of overpriced and useless “Payment Protection Insurance” who’s only purpose is to make extra money for the lender without any benefit to the borrower. Is that normal? Does that happen many times? Yes, it is very common.

The effect of this kind of thing usually is that you end up paying approximately one and a half times as much as if you had just borrowed the money without this hidden extra attached to it!

It is very common that many borrowers are trying to reclaim some of their money they spent on invalid insurance policies. Mostly customers have been mis-sold about the insurance policy. People are filing PPI Claims for quite a few reasons for instance, if “completely guarded” based quotes were offered or in most of the cases if they were given the wrong impression about those are ineligible who are not employed or retired. People may also file PPI Claims if the stipulations of the financial institution were not entirely insured by the policy or may be if they were not asked about pre-existing conditions.

The truth about the PPI policies is that the people who pay for them are mostly ineligible to obtain the advantages. There are lots of conditions and restrictions set on the insurance policies that are not quite consummate to collect and this is exactly why most of the people are filling their PPI claim. The question is how far back can you claim PPI? Payment protection insurance is often mis-sold when getting a loan or credit. PPI is not valid if a person is unemployed, retired or a student. PPI is not a compulsory product. People could be owed thousands of pounds in compensation!