If we will believe the reports from the Financial Services Authority, there are about 3 million British who were sold payment protection insurance by the banks and financial lenders through mis-selling or non disclosure of vital info. The complete ppi claims is thought to be worth around 2 billion pounds. Although, the Compensation Commission has now introduced a ban on sale of payment protection insurance at the same time as credit cards, loans and mortgages, there's much more to be completed to help the victims of ppi mis-selling.
For those who don't know, ppi or payment protection insurance covers loan repayments if a person is not able to pay back his or her debts because of unforeseen conditions like accidents, illnesses or loss of job. Although they're frequently sold with a number of financial products, nearly 90% of policies sold relate to unsecured loans, credit cards and mortgages. These loans are normally disguised under different and fancy names like loan and credit protection, accident, sickness and unemployment cover. When banks or financial lenders market ppi, claiming a no PPI, no loans clause, the customer is qualified to receive compensation and may even create ppi claims to the Financial Services Authority.
Also, if a consumer has a policy running and was sold a ppi from the past six years and it had expired, the client has a legitimate floor to make ppi claims for compensation. To do so, he would have to develop the original papers in connection with the insurance plan. As earlier said, when the seller gives the consumer no other choice than the plan provided by him, the client is liable for compensation from the banks. Also, if the seller hasn't read out the terms and conditions that include a cooling off period he or she is responsible to pay compensation.
Payment protection insurance is regularily mis-sold to a lot of people with pre existing medical conditions like heart complaints, high blood pressure, asthma, diabetes, high cholesterol and even migraine, totally aware that insurers deny ppi claims for these medical conditions. Additionally, individuals with an irregular, insubstantial and variable source of income cannot create ppi claims whereas banks and mortgage companies have sold ppi to a number of people failing under this category.
Once you've ascertained that you're eligible for a ppi; the next step is to then file for ppi claims with all the bank or financial lender. If the financial institution is unrelenting, you might get a letter from the bank and proceed to the Financial Services Authority to file your own ppi claims for compensation. You could also contact a ppi claims company that could enable you to reclaim the entire ppi premium, the interests and commissions that go together with it.
Author Resource:
Harry Tomas specialises in PPI claims and other financial products for UK based website www.PPIClaimsUK.co.uk . He also lifts the lid on unfair mortgage charges and the financial claims industry generally, in addition to writing articles on personal finance, house sales, repossession and business finance.
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