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.
