Payment protection insurance was designed to help the loan borrowers in the event they were injured in an accident and cannot go to work or if they become critically ill. This particular insurance plan would make repayments to the loan companies till they resumed their work. At least half of the borrowers deny coverage but the other half had a good portion are not asked, these were just offered the policy and pay the premiums without knowing and understanding it.
In the end, there were several complaints in regards to the ppi industry. Out of all of the people that purchased the payment protection insurance plan, possibly knowingly or unknowingly to them, only about 5% really ever filed their ppi claims when they needed to. Even worse, the statistics revealed that about 70-75% of those that do file their ppi claims failed to meet the terms set forth in the insurance plan.
When the FSA got involved, careful investigation has made and they have found out that most of the times, the lenders didn't tell the borrowers all the details needed, such as the ppi claims criteria. It also found that a good number of these lenders would use scare tactics to persuade the borrowers into agreeing to take it out when they applied for a loan. Quite a few lenders truly even added overpriced ppi to lump sum payment to the beginning of the loan repayment plan. By doing this, the borrower would have no way of cancelling the payment protection insurance.
There are several basic questions that you need to ask to yourself if you feel you may be able to make ppi claims for your premiums. Some include the items we mentioned above, such as being told you needed to purchase the policy to get a loan, or if you were not really told at all, yet were charged for the ppi cost. If you were not told of the terms prior to purchasing or if you were offered ppi and were self employed then you can create your ppi claims since the policy has been mis-sold to you.
If any of these applied to your circumstance, you are like many other individuals whom were mis-sold payment protection insurance and able to file your ppi claims now to try to get back the money you paid for the premiums.
Author Resource:
Harry Tomas blogs about PPI claims and other financial products for United Kingdom based site www.PPIClaimsUK.co.uk . He also lifts the lid on unfair mortgage charges and the financial claims sector generally, as well as writing articles on personal finance, house sales, repossession and business finance.
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