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PPI Compensation - What You Need to Know

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Ppi (PPI) has been heavily pushed alongside loans for the past 15 years, and lenders tend to make more income from selling PPI compared to what they do from 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 the Citizens Advice Bereau. Due to this, those who have been sold PPI insurance is entitled to reclaim their cash and claim compensation, with interest added on.

If you have taken out a personal or secured loan, or a store card or charge card, there's a good chance that you have payment protection insurance. It's been estimated that 20 million policy-holders happen to be mis-sold PPI. A number of these people are completely unaware they have been sold this insurance policy.

ppi

Ppi is often sold with credit agreements to protect the borrower from not being able to make payments for reasons such as illnesses, unemployment and accidents.

It may be very costly to purchase. Some policies typically cost between 15-55% from the actual credit or loan agreement. If you think that you may have been sold facets of a policy that aren't applicable for you, then you are probably eligible for claim PPI compensation.

If assessing whether compensation is payable, stuff that should be checked are medical purchases, unemployment cover, and whether or not you've consolidated your borrowing. These factors should 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 would be valid.

There are many scenarios in which PPI might have been mis-sold. If you have paying for a policy that includes unemployment cover, and you have no need for unemployment cover, you might be able to make a claim. Also, if you've experienced medical problems previously, and you weren't informed that the policy might be impacted by medical conditions or else you were not asked about your medical history, then you might be able to claim.

Should you be sold a single premium loan policy, meaning that the entire insurance cost was added like a lump sum payment at the beginning of the agreement, and you changed it of left it part of the way through, then you definitely might be eligible to get a partial refund.

Should you purchased PPI without realising, or you were advised that it is compulsory, that is also grounds for a claim. Any misinformation would make the sale of the policy unjust.

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

Posted May 27, 2012 at 7:17am

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