PPI Compensation - What you ought to Know »

 PPI Compensation - What you ought to Know

27/5/2012

Payment Protection Insurance (PPI) has been heavily pushed alongside loans within the last 15 years, and lenders tend to make more income from selling PPI than they do in the actual loan.

Fortunately however, selling PPI insurance to consumers who were uninformed became illegal in May 2009 after being heavily opposed by consumer groups and also the Citizens Advice Bereau. Because of this, those who have been sold PPI insurance coverage is eligible for reclaim their money and claim compensation, with interest added on.

For those who have taken out an individual or secured loan, or a store card or credit card, there's a good chance you have ppi. It has been estimated that 20 million policy-holders have been mis-sold PPI. Many of these individuals are completely unaware they have been sold this policy.

ppi

Payment protection insurance is usually sold with credit agreements to protect the borrower from being unable to make payments for reasons for example illnesses, unemployment and accidents.

It can be very costly to buy. Some policies typically cost between 15-55% from the actual credit or loan agreement. If you feel you may have been sold facets of an insurance policy that aren't applicable for you, then you're probably entitled to claim PPI compensation.

If assessing whether compensation is payable, stuff that ought to be checked are medical purchases, unemployment cover, and whether you have consolidated your borrowing. These factors ought to be cross-referenced with your circumstances at the time whenever you got the PPI policy; it is very common in these instances that PPI compensation could be valid.

There are several scenarios in which PPI might have been mis-sold. For those who have spending money on an insurance policy that includes unemployment cover, and you have no need for unemployment cover, then you may cover the cost of a claim. Also, if you have experienced medical problems previously, and also you weren't informed that the policy might be affected by medical problems or you were not asked about your health background, then you definitely could possibly claim.

If you were sold a single premium loan policy, and therefore the entire insurance cost was added like a lump sum at the outset of the agreement, and you changed it of left it part of the way through, then you definitely may be permitted to receive a partial refund.

If you purchased PPI without realising, or you were told that it is compulsory, that's also cause for claims. Any misinformation will make the sale of the policy unjust.

Should you consolidated your borrowing, its very possible that an insurance premium may have been added to it. If this sounds like the case, then you'll potentially be able to recover this premium.

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