PPI - learn its tricks well
Mis-sold PPI Claims - PPI
What is PPI?
PPI or Payment Protection Insurance is a controversial money-spinning policy offered by banks and lenders on any type of loan, such as mortgages and credit cards. In recent years it has become common knowledge that these policies have been intentionally mis-sold at the expense of customers using underhanded tactics, such as pressuring customers into accepting the premiums, and even signing customers up without their knowledge or consent. Some customers only discovered they were paying PPI premiums months after taking out the policy, after having made significant payments. Research has shown that around 70% of PPI policies were mis-sold.
PPI was created to protect the monthly repayments of customers in the event that they faced a sudden and dramatic loss of income due to unemployment, accident or illness. The idea was that the PPI would cover any monthly payments until the policy holder is able to continue repaying the loan. Although this sounds like a good idea, the reality was that many policy holders would not be protected, and their PPI policies were entirely useless, and sold simply to generate profits for the provider.
PPI was widely mis-sold to those who did not meet the criteria needed to claim on the policy, with many restrictions and exclusions effectively rendering the policies worthless. Research has shown that PPI is rarely helpful, with less than 11% of customers able to benefit from their policy. Many customers are now realising that they are entitled to claim back any payments they have made, with banks legally required to compensate them with a full refund.
So then, it comes as no surprise that around the UK millions of customers are successfully reclaiming their PPI premiums, with many customers entitled to thousands of pounds in compensation. Many solicitors now specialise in PPI complaints, making it easier than ever to claim.
Features of PPI:
Many banks have been accused of pressuring customers to accept PPI premiums, even telling the customer that the success of their loan application is dependent on them accepting PPI cover. This is not true, and it is possible to shop around for the best deal on PPI. Although most PPI policies will differ in specific coverage, most conform to a few general features.
- PPI will usually pay out for a limited period of time. This will be stated within the policy, but it is usually 12 months
- In order to claim due to unemployment, the policy holder will need to have been working for the same company for a minimum of one year. Many customers who were mis-sold PPI were self employed, or at risk of becoming unemployed, making their policy useless
- You may not be able to claim for all illnesses. Some policies will not cover a “pre-existing medical condition”, with common problems such as stress and back pain not covered. Customers who were mis-sold PPI were often not told that these conditions were not covered, and were left facing extreme financial hardship after their policy was revealed to be worthless
What you need to know:
When taking out PPI cover, it is important to check whether you already have insurance that will cover the same financial loss. It is very important to check what will and will not be covered by the PPI you are taking out so you know exactly what type of cover you will be receiving, as well as evaluating whether the insurance will be worth the monthly premiums.
If you feel that you have been mis-sold PPI, you may be eligible to claim compensation. This can appear to be an overwhelming and lengthy process, but using a Claims Management Firm can take away all the hassle involved. Although it is possible to pursue a claim without a solicitor, making a claim alone could lead to your bank delaying or obstructing the process. The expert guidance of a solicitor will set out exactly how much compensation you are owed, and ensure that you receive the full amount.