What is PPI
In this article I discuss how to claim back PPI, and outlines the important facts. PPI stands for payment protection insurance. It is also called credit protection insurance or loan protection insurance.
UK finance expert Martin Lewis, money saving expert, says “PPI is the biggest misselling scam in the UK…” Lewis continues to explain he thinks over 10 Million pounds of mis-sold PPI exists out there!!
This is clearly not good, and in this article I will help you work out if you have been scammed and what you can do.
PPI is not the same type of insurance that protects against lost wages. The purpose of PPI is to protect the insureds credit rating if they become unable to work.
This can occur if sickness strikes or in the case of unemployment or even death. PPI is an insurance policy that covers loan payments to banks and credit card companies if the insured can not service their debt. These types of policies are usually for a fixed amount of time.
How Do Problems Arrise with PPI?
Unfortunately as I mentioned above, there is literally millions of pounds of mis-sold PPI out there. The way that banks and some lender deceive people is that the bundle the loan and PPI into one, and refer to it as a fully secure loan. Most people don’t know this and end up just paying the monthly payments without knowing they are paying for PPI!!
Caution is to be used in determining if this kind of insurance is a good idea for most people. There are high-rejection rates for PPI insurance. Acceptance of claims occurs when there is strict adherence to policy terms and limits. Understanding how this insurance works is important.
The problem is that many of the policies are mis-sold to consumers. FSA reports indicate that many of these PPI’s were sold to consumers who did not need them. The FSA reports also show that many consumers were not informed that they were also paying for this type of insurance.
What is Back PPI?
Back PPI can mean two things. Back PPI may mean that a consumer is entitled to a refund of the premiums paid out for a PPI policy.
Back PPI may also mean that a consumer is entitled to the insurance payments of a PPI case that was denied or rejected. In either case, back PPI means that some consumers may recoup the cost of insurance that was suppose to protect them.
Indicators for How to Claim Back PPI
- PPI policies that were written in such a way that they did not cover the full term of a loan.
- PPI policies that were mis-sold. These may have been sold as a compulsory insurance plan, rather than as an optional insurance plan.
- PPI policies that did not cover people who were self-employed.
- PPI policies that were sold to consumers without the consent of the consumer or without the consumer knowing they were paying for a PPI policy.
There are many companies out there that are willing to help consumers reclaim their back PPI. It may be advisable for consumers who believe they may be eligible for back PPI to sit down with a professional to see if the back PPI is recoverable.
One key element that typically comes up involves qualification for PPI. Many consumers who were sold PPI policies would not have qualified for the policy in the first place.
If this is the case, then the back PPI is reclaimable because the consumer should not have been offered insurance coverage that they did not qualify for.
There are many cases of out-right fraud on the part of the people who sold PPI policies. The number of consumers who did not know they were buying PPI policies is substantially high.
This is very true for real estate transactions where the amount of papers that need to be signed are significant. Many borrowers simply signed papers and did not know they were buying payment protection insurance.
Anyone who believes they may be eligible to reclaim back payment protection insurance premiums should consult with a professional. Many companies offer to review claims for back PPI without an upfront cost.
It would be well worth the time and effort to meet with a professional and have them review any potential payment protection claim. The high number of mis-sold cases that have been uncovered already is an indication of the corruption that many consumers fell victim too.