PPI – Once the Saviour, Now Mis-Sold PPI More the Norm

Many a person will need financial help after taking out loans and being forced to pay back the debt. It’s not a bad thing to have payment protection insurance. It is actually very useful if it is sold to the right people.

Payment Protection Insurance (PPI), is often sold along with financial products like mortgages, loans and cards. The insurance is designed to provide protection for the buyer in the event that they lose their job, become ill or are unable to repay the money they borrowed. What a great idea! But here’s the catch. Payment Protection Insurance is a high-risk category. This insurance can increase your original finance cost by up to 40% and earns you big commissions.

Like all good things in life, it can also be misused. It is therefore not surprising that The Financial Ombudsman Service has been overloaded with mis-sold ppi for the past 5 years.

Many consumers felt that they were being told they needed PPI to obtain the financing they required. They were “prayed on” by the sales representative. Others were forced to take out PPI when they bought furniture or with a store credit card. If times are good, and credit is readily available, the temptation to sell such products to financial sales personnel must be too great to be true.

People are now more cautious and scrutinising their accounts. It has been discovered that many people were mis-sold PPI for many reasons. These are not the only ones who were mis-sold PPI. There have also been people who were sold PPI to individuals with pre-existing conditions that the PPI policy wouldn’t cover. Even if they filed a claim, the insurance company would reject it.

It is worth looking at the payment statements if you have any type of finance agreement that has been taken out within the past 6 years. You may not be aware you have PPI alongside your regular monthly repayments. You should immediately take action if you believe you were mis-sold PPI.

Now you have two options: contact the lender directly or use a claims-management company. You have the option to choose. Although it’s possible to do it yourself, lenders and banks have a team of highly-paid legal staff who are there to help you deflect or reject your claim. PPI cases are complex and require a lot of knowledge and time. You can also use a claims management firm that has the legal backing to help you fight the policy seller. Although they may be paid a commission, this is still a good deal and better than nothing.

The average payout for mis-sold pippi is more than PS2000, according to estimates. This is your money, and you will see something that you didn’t expect. You will still receive a lot back even if you pay the claims management company’s fee.

Some companies charge up to 35% for successful claims, while others require upfront fees before even considering your claim. If you feel you were mis-sold, ppi will only work on a win-no fee basis and charge a lower rate. You can do some online research to find reputable companies that will be fair and honest with you.

PPI may be a good thing, but it is important to consider your needs and situation. This should have been taken into account by the salesperson when they sold you the PPI insurance policy. The policy terms, conditions, and exclusions should have been clearly explained to you. You should immediately take legal action if you feel that you were mis-sold PPI.

Don’t leave your commission to the financial salesmen. If you take the time to file a claim and complete the required forms, you can still claim your money back. It takes only a few minutes to get your PS2000 back.