Preventative Measures taken to overcome the Problems of PPI Policies

With an increasing trend in use of consumer loans, purchase of Payment Protection Insurance (PPI) is also increasing. Although, this insurance is supposed to provide relief to the consumers it gives rise to some problems as well. One of the problems arises when a claim on PPI is turned down i.e. after buying a protection policy when the consumer claims its payment the issuer company of the insurance refuses to pay it back. Another problem is of mis sold PPI, which mainly is our concern here. In the past few years immense amount of complaints were made against the lenders, and so to assist these people in making PPI claims many PPI claim companies came into being.

Payment Protection Insurance (PPI):

What happens if you take a loan and due to some reasons it becomes impossible for you to pay it back? This was the question that the makers of PPI policy had in mind. PPI is something that can be purchased to assure payments of any kind of consumer loans in case a borrower is unable to work, it may include circumstance, such as, where the borrower becomes ill or handicapped or dies. The issuers of these PPI are usually banks or insurance companies. PPI are usually purchased when a loan or mortgage is taken but that’s not necessary, sometimes they are also acquired independently. In UK, PPI are also given other names such as loan protection, loan insurance and so on.

Mis Sold PPI:

The policy was apparently prepared to advantage the borrowers; this new creation was introduced as a smart option for the customer. But things did not work as smoothly for the borrowers, as they were perceived to be. Instead, they turned out to be in favor of lenders and the insurance companies or banks. The lenders used some tricks to mis sell these PPI. In some cases, when you took a loan they made acquisition of PPI mandatory. Sometimes, the buyers were not given proper information when they could have ended up buying cheaper PPI. Most of the times, the buyers were unaware of the fact that PPI is being added to the policy.

Differences and Similarities between Mis Sold Mortgage and Mis Sold PPI

Apparently mortgage and Payment Protection Insurance PPI policies in Uk were made to cater the needs of borrowers, they were made to provide relief to the borrowers (the term borrowers here includes not just the individuals who are facing some financial problems and want loans to buy house or start a new business but also big companies and firms who aim to extend their business). But unfortunately these policies turned out to be more in favor of lenders and the mortgage or PPI brokers, while selling them to the borrowers they were unfair and thought only about their profits and not about the difficulties that borrowers were to face.

Mortgage is a debt instrument where a person takes a loan by pledging some real estate property against it and pays back the loan in installments. However, according to the statistics the problem of missold mortgage comes almost hand in hand with the usage of mortgage. At the time when mortgages are being sold the brokers does not fully disclose information in front of the customers. And the customers trusting the advice of the brokers sometimes end up buying overly priced mortgages which makes it difficult for them to keep pace with their required installment payments.

Payment Protection Insurance (PPI) on the other hand, is a policy which is used to cover debt in case a person becomes unable to earn like if a person dies, looses the job, becomes handicapped or ill. In such circumstances the insurance company will pay for the installments. However, this is not how it happens the insurance companies at times refuse to pay the installments when the borrowers claim. There are also other problems associated with buying this policy; many times borrowers have no idea that they are acquiring PPI policy along with mortgage loans. Also sometimes PPI is forcefully added to the policy and there are also case where buyers are not given full information and they end up buying PPI at higher rate. These are all the problems of missold PPI.

Missold PPI and missold mortgage are two different problems but in essence they are the same. In both the cases, borrowers are the ones who face the repercussions. Sometimes in the form of paying extra money as installments payment and sometimes getting the claims turned down from the insurance company in an event where they are supposed to pay on behalf of the borrowers. Both of these issues affected so many people in UK that the Financial Services Authority (FSA) and Office of Fair Trading (OFT) both decided to intervene and to provide a solution for this problem. They made general guidelines as to how these PPI and mortgage should be sold and what actions should be taken against those who violate them.

If you are sure to have a mis sold ppi then simply apply for ppi claims to recover the lost money

Frauds with loans and debts are a common thing these days mainly because of the fact that lots of people are associated with different types of loans. Majority of people do not have enough knowledge regarding loans and that is why they fall in the trap of money lenders. People are familiar with only basic things that apply for a loan, do a signature on the agreement and get money in the hands. They do not even realize that they have been cheated by financial lenders. This way most of the times they become victim of mis sold PPI due to which they need to face great loss of money. But this can be stopped and a person can even regain his money by applying for PPI claims.

PPI actually stands for Payment Protection Insurance and it is meant to recover money for the financial provider who has given loan to the borrower. But it works in certain conditions which have only one thing common, that the borrower’s income is badly affected. When the borrower is medically unstable, economically disturbed or is going through any other situation due to which he is not being able to earn then only PPI proves to be an advantage. During the process of explaining the borrower about the contract, financial lenders either skip the part of PPI or only mention its advantages to them but mostly they do not inform them about the disadvantages associated with it. These are ways through which money lenders mis sold PPI. But after witnessing increase in this problem many countries have introduced PPI claims which helps in recovering the money lost due to mis sold PPI.

By applying for PPI claims a person having mis sold PPI can get all the money back and he may even get some concession too, depending on how good the lawyer is. PPI is usually linked with those types of loans that are commonly issued through banks such as loans of credit card. To understand the concept behind mis selling of PPI and PPI claims a person need to consult an expert of this field. Such a professional who can make you understand that whether you are a victim of mis selling of PPI or not. You cannot simply claim PPI whenever you wish. You need to have strong evidences which can prove that you are a victim in the eyes of law and order of the country.

Reasons behind Mis Sold PPI

Here firstly we will discuss that what is PPI or payment protection insurance? And why should make PPI claims? PPI have also other market names such as credit insurance, loan repayment insurance and credit protection insurance. PPI is a type of insurance which allows an individual for the repayment of money given to the other person. If some mishap occurs such as he/ she dies, sick, met with an accident, he loses his job or any other situation occurs which stops the income, PPI enables to repay all the money. Make sure that do not mix up payment protection insurance with the income protection insurance (IPI). Both are two different things. PPI is widely given by different banks and other wealth providers. PPI does not cover only specific things under it but it has wide range of loans including loan for different finance companies, car loan, home loans, etc. Different policies & programs are also available for particular type of mishap such as credit income insurance, credit life insurance etc.

PPI covers minimum loan which is also called over draft but for a small span of time usually 1 year (12 months). After this time period the lender should find another way to pay all the debt. Period of 12 months is an ample amount of time to payback all the debt after start earning again. PPI differs from the one called home insurance. In that type of insurance it is too difficult to say whether this person or that person is right. Cautious observation should be made in this type of matters.

Reasons

Following are some of the basic and important reasons for which if one gives a positive answer he is mis sold PPI. One is that he was not familiar of the fact that protection of money is optional. Secondly, he was unemployed or retired when it was taken out. Thirdly, he was alerted that PPI was mandatory. There is a long list for that but these are few ones that why a person should make PPI claims?

If you are sure to have a mis sold ppi then simply apply for ppi claims to recover the lost money

Frauds with loans and debts are a common thing these days mainly because of the fact that lots of people are associated with different types of loans. Majority of people do not have enough knowledge regarding loans and that is why they fall in the trap of money lenders. People are familiar with only basic things that apply for a loan, do a signature on the agreement and get money in the hands. They do not even realize that they have been cheated by financial lenders. This way most of the times they become victim of mis sold PPI due to which they need to face great loss of money. But this can be stopped and a person can even regain his money by applying for PPI claims.

PPI actually stands for Payment Protection Insurance and it is meant to recover money for the financial provider who has given loan to the borrower. But it works in certain conditions which have only one thing common, that the borrower’s income is badly affected. When the borrower is medically unstable, economically disturbed or is going through any other situation due to which he is not being able to earn then only PPI proves to be an advantage. During the process of explaining the borrower about the contract, financial lenders either skip the part of PPI or only mention its advantages to them but mostly they do not inform them about the disadvantages associated with it. These are ways through which money lenders mis sold PPI. But after witnessing increase in this problem many countries have introduced PPI claims which helps in recovering the money lost due to mis sold PPI.

By applying for PPI claims a person having mis sold PPI can get all the money back and he may even get some concession too, depending on how good the lawyer is. PPI is usually linked with those types of loans that are commonly issued through banks such as loans of credit card. To understand the concept behind mis selling of PPI and PPI claims a person need to consult an expert of this field. Such a professional who can make you understand that whether you are a victim of mis selling of PPI or not. You cannot simply claim PPI whenever you wish. You need to have strong evidences which can prove that you are a victim in the eyes of law and order of the country.

Easy and effective way to claim PPI

Miss sold PPI plans are the talk of the town these days and people want to claim back there premiums the easy way. PPI claims may pop up where a plan was miss-sold or where a plan which was earlier useful has lost its purpose.  An individual can himself claim the premiums under the plan by using the FOS service but the process is complex and lengthy as it requires a lot of correspondence with the policy lender or bank. Even after such hectic process, one may not be able to successfully claim the compensation and therefore this article has been drafted to give you some tips of how to go about these claims with better chances of success.

PPI solicitors

For those who want to put forward PPIclaims, the best path is to go for specialist PPI solicitors as they won't only make the process easy for you but they will also improve your chances of success. Most of the banks and policy providers higher experts to defend the claims which are filed against them and therefore it's very difficult for an ordinary man to deal with such professionals because they are far better equipped with the technical aspects of a claim. PPI solicitors tells you after looking into your case that whether you are eligible for filing such claim so that you do not end up wasting your time. So a person should always opt to claim PPI through expert solicitors as they will always draft a strong claim.

Other benefits of PPI solicitors

When the PPI solicitors are sure that you are eligible to file in a PPI claim, they will deal with your provider or bank which will prevent you from all the stress of paper work and other document filing procedures. They are so specialized and experienced for the purpose that not only they can recover the premiums which you have paid under the miss sold PPI but also the amount of interest based on the time of such premiums. You can find many companies who provide you with such services and the best thing about them is that they won't charge you any fee if they fail to win your case and many won't even charge upfront payments. So you are benefitted even if you lose your PPI claim and the benefit is that you do not have to pay a single penny and it also saves your time and effort.

Claim PPI and Win Back Your Lost Amount of Money

The world runs on a very simple rule that if you want something then you has to give something in return. As the importance of money increased along time this rule also got applied at borrowing money what we call loan in this modern era. When people take loans, they usually keep any of their personal assets as a security which ensures that they will return the amount they have taken before the due date of repaying the loan. To earn a profit through these loans, those who give loans put a certain interest rate on the loans so when they get their money back they get it more than they have lent. But these money lenders have become extremely materialistic and greedy with time. They try cheap methods to make more profits and not even considering that through what circumstances the person who has to return the debt might be going through. These financial lenders sell Payment Protection Insurance as an additional scheme in order to ensure the return of loan which they have lent to the person who takes loan from them. The lenders apply unfair policies with this scheme and the borrower of loan turns out to be a victim of PPI mis selling due to which he faces heavy lose of money. After witnessing this situation countries like United Kingdom introduced laws through which a borrower can claim PPI in order to get back what is truly his.

If you believe that a PPI has been mis sold to you then you should claim PPI and to claim PPI it would be best to go to law firms which have experts of law and order. These law professionals will guide you through out the process so you can claim PPI and they will also help you out with this issue by helping you in winning your PPI claim. Before claiming your PPI a person has to go through some simple procedures. The professionals of law are aware of all of these rules and regulations so they know the best and the easy way of going through these procedures that is why it is advisable to hire them from a good law firm.