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 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.

If you know that you are having mis sold PPI then simply claim PPI to recover the lost amount

The world has become too materialistic since money has gained its importance. These days where money is present, cheat and fraud are also a part some way or the other. From past few years it has been seen that large number of financial lenders who provide loans do cheat while making an agreement regarding loan. Either they mis sell something in order to make unacceptable profit or they use dome other cheap trick to make unnecessary profit. Mis sold PPI is one of the common methods used by these money lenders. This was witnessed a lot in European countries, especially in the United Kingdom. That is why its government made extremely strict laws against those money lenders who use such cheap methods to make extra profit.

Payment Protection Insurance is actually a product of insurance which is meant to recover the money of the financial lender during such circumstances when the borrower’s income is being affected. If the borrower is going through a medical problem due to which he is not able to earn money then Payment Protection Insurance proves to be useful for the money lender. When the borrower dies then it proves to be useful but in most of the cases it does not seem to be a good insurance. Mainly because of the fact that loans are short term compared to this insurance. But since government has passed some laws regarding it people can now claim PPI.

A person who has been mis sold PPI can recover his lost money by claiming his or her Payment Protection Insurance but it cannot be done without a good lawyer’s help. In order to file a case for claiming it people need to contact a renowned firm of lawyers which have a good reputation in such cases. Common people do not have sufficient knowledge regarding the rules and regulations associated with the cases of claiming Payment Protection Insurance. That is the reason people need to hire a lawyer who has great knowledge of every law which is linked with such problems.

To claim PPI people need to go through some procedures which cannot be passed without a lawyer’s help. First you need to contact a firm which will help you in understanding that whether you really have mis sold Payment Protection Insurance or not. If you are found to be its victim then they will help you understand the further processes associated with its claiming. This way they will guide you step by step from the filing of case till the end result which will be announced by the court. And if you would be working with a renowned and experienced team of lawyers then you will definitely win the case.

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.