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!

If you know that you are having mis sold PPI then simply claim PPI

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.

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.

What are mis sold ppi?

Payment protection insurance is a plan which was devised for those individuals who are having a tough time in managing their repayments under different debts or who are not confident about their future. Future always has an element of unpredictability and a person may lose his job or may get ill in which case he won't be able to pay off his debts. But it's not a hidden fact that thousands and thousands of individuals in UK were sold plans which are not by any means useful for them. Mis sold ppi is both a question of fact and law and it depends on the circumstances of an individual and their dealings with the policy providers. The success of ppi claims depends on the experts which you higher because they can surely make your claim strong.

Most of the people might ask that what constitutes a mis sold ppi. The answer to this question is as follows:

1.       Were you clearly informed with your loan product that the ppi policy is an optional one or you were almost forced into it?

2.       Were you made known about the clauses that relate to medical conditions which are already in existence?

3.       You should have been asked that whether you are self employed or not because if you are self employed, than ppi sold to you will count as mis sold ppi.

4.       Similarly a ppi sold to an unemployed person is in valid.

5.       One payment premium has duration of 5 years and interest payment will also be made for these 5 years on this premium as it becomes a part of your loan. Were you pre-informed about this fact?

6.       People should be informed about the interest payments on the policy and if not, than their ppi claims are valid.

7.       If you were sold a ppi which has no benefit for you and this fact was evident to the policy provider, than it will count as a Mis sold one.

8.       No policy provider is allowed to sate any ppi policy as a mandatory one and they are obliged by law to sell you a plan which suits your condition best.

If you still aren’t sure about the mis selling, than you should go for an expert advice and bear in mind that experts should have experience of such cases. You can find many consultant companies who not only guide you about a Mis sold ppi but they also represent you in the process against the policy lenders. Remember that if ppi providers are including ppi payments in your monthly repayment or if they state that it’s a mandatory part of your loan or card, than it is illegal. It is recommended to go through all the process under an expert's supervision as they will ensure that you regain all your premiums.