_Claiming Back What's Due to You
_It seems that claims companies are fast catching up with banks and lenders in terms of income derived from payment protection insurance. The Financial Services Authority reports that there are still 2 to 3 billion yet to be reclaimed from the PPI. What is this controversial insurance policy anyway? For starters, the payment protection insurance policy caters to the unemployed who ended up losing their job due to an accident or illness. It will cover payments from 12 to 24 months, depending on the policy, until such time that the policyholder can bounce back and look for another source of income. The policy can cover payments such as mortgage, credit card payments, and utility bills. The payout usually starts 30 days after unemployment.
However, a useful policy like the payment protection insurance comes with a number of limitations. It does not benefit people who are unemployed, retired, or working in a part-time and contractual type of arrangement. It is mandatory for policyholders to be fully employed upon the purchase of the PPI. People with pre-existing medical conditions also do not qualify for this, as it increases the risk on the side of the insurer. Not all policyholders know this because their banks or lenders do not tell them. Some banks and lenders even promise their clients that the terms can be adjusted.
The commission attached to the sales of payment protection insurance is what attracts banks and lenders to come up with competitive but very poor sales methods. PPI is an optional purchase but they tell their clients that they cannot take out a loan or a credit card unless they buy a PPI. This is simply not true. Also, they tell their clients that PPI can only be bought from one source. This is another myth, because third-party services also sell PPI policies. Financial experts advise people from buying directly from the institution that lent them the loan.
Unfortunate clients also stumble across banks and lenders whose agents do not reveal full details of payment protection insurance terms. A PPI policy adds up to 13% to 56% of the total cost of the loan or the credit card payments. Agents do not normally reveal this information. Worse, they even alter the information. Some clients end up paying for something they do not even know about. There is a case of a retired lady who found out through her daughter that she was paying for PPI with her credit card. There are two fundamentally wrong things here. First, she is already retired. Second, she was unaware of the PPI charges in her billing statement.
Prevention is always the best solution against payment protection insurance scams. But for those who have already fallen victims to vicious banks and lenders, there is always a solution to claim back what is due to them. As soon as you find out that you have been missold a PPI, you must act on it right away. There is a time limit in which you can post a claim. It would also help if you kept the documents that are pertinent to your PPI policy.
You must write to the bank or lender and explain why you believe that they missold you a payment protection insurance policy. However, beware of them. They are already adept in dealing with such cases and any small technicality can cause you to lose. It is better to consult a claims company and let them handle the paperwork. Competent claims companies can give your money back in as quick as 3 weeks and the chances of winning are at a high 95%. All you have to do is visit their web site and fill out forms they're asking for.
However, a useful policy like the payment protection insurance comes with a number of limitations. It does not benefit people who are unemployed, retired, or working in a part-time and contractual type of arrangement. It is mandatory for policyholders to be fully employed upon the purchase of the PPI. People with pre-existing medical conditions also do not qualify for this, as it increases the risk on the side of the insurer. Not all policyholders know this because their banks or lenders do not tell them. Some banks and lenders even promise their clients that the terms can be adjusted.
The commission attached to the sales of payment protection insurance is what attracts banks and lenders to come up with competitive but very poor sales methods. PPI is an optional purchase but they tell their clients that they cannot take out a loan or a credit card unless they buy a PPI. This is simply not true. Also, they tell their clients that PPI can only be bought from one source. This is another myth, because third-party services also sell PPI policies. Financial experts advise people from buying directly from the institution that lent them the loan.
Unfortunate clients also stumble across banks and lenders whose agents do not reveal full details of payment protection insurance terms. A PPI policy adds up to 13% to 56% of the total cost of the loan or the credit card payments. Agents do not normally reveal this information. Worse, they even alter the information. Some clients end up paying for something they do not even know about. There is a case of a retired lady who found out through her daughter that she was paying for PPI with her credit card. There are two fundamentally wrong things here. First, she is already retired. Second, she was unaware of the PPI charges in her billing statement.
Prevention is always the best solution against payment protection insurance scams. But for those who have already fallen victims to vicious banks and lenders, there is always a solution to claim back what is due to them. As soon as you find out that you have been missold a PPI, you must act on it right away. There is a time limit in which you can post a claim. It would also help if you kept the documents that are pertinent to your PPI policy.
You must write to the bank or lender and explain why you believe that they missold you a payment protection insurance policy. However, beware of them. They are already adept in dealing with such cases and any small technicality can cause you to lose. It is better to consult a claims company and let them handle the paperwork. Competent claims companies can give your money back in as quick as 3 weeks and the chances of winning are at a high 95%. All you have to do is visit their web site and fill out forms they're asking for.