What is Payment Protection Insurance?. Payment Protection Insurance is an insurance policy that covers your future outgoings in case the worst should happen; illness, unemployment, death. Usually taken out for loans or credit cards, especially when requesting a loan or credit on purchases such as cars, Payment Protection Insurance would normally cover you for a period of 12 to 24 months after which it would cease to cover you. for that current period.
PPI will not cover you if you are already unemployed or if you are a person who suffers from pre-existing health problems such as heart problems, high blood pressure, diabetes, etc. or even ilnesses or health problems that can cause you to be off work in the furture, like various back or muscle problems.
A return of payment protection Plan is high for lenders, therefore, many lenders keep unscrupulous practices to attract or force the client to buy a PPI when you go for a loan. This is especially rampant in cases where the user chooses a single premium policy. Policy single premium PPI premiums are taken from 36 to 60 months as paying onetime and are added to the main loan. Many times the Bank does not cancel a PPI, even if they have to return the loan.
Other common instance of mis sold PPI are when
PPI is added to your loan and customers are not informed
Customers are forced to buy PPI in order to gain a loan, sometimes informing them that a PPI helps speed up the loan process.
Lenders or agents sold PPI to a customer knowing that the customers recycle would be rejected.
The FSA, taking into account the large number of complaints about banks reject claims has reinforced the PPI process. According to the FSA, the Financial Services Ombudsman has received in excess of 100,000 complaints regarding missold PPI so far, and 4 out of 5 decisions made regarding PPI reclaims have been to the consumers benefit.
If you think that you have been mis-sold PPI. Set out the reasons why you believe that the PPI was mis-sold to you and contact a claims advisor ... The claims advisor would be able to inform you if your claim is valid and you are likely to succeed in reclaiming your PPI from the company or bank. If you claim is successful, all the PPI premiums you’ve paid together with an addition 8% interest may be returned to you.