Can I Claim PPI Back
Many consumers have realized that in recent years when applying for a loan you are likely to have PPI added to a loan even though you aren't aware at the time that it is being added. It isn't until much later that it becomes evident that the lender pulled one over on your. There has been a lot of confusion regarding payment protection such as what you get from, and how does it work. As the Citizens Advice Bureau (CAB) cited payment protection as one of the leading scams of the decade in 2006 it is easy to understand why someone would want to know about it.
PPI Background Information
In the past 10 years many borrowers have been sold and protection insurance by lenders. Lenders knew they had the leverage in which to increase their earning potential without increasing the amount of money loaned. They devised a plan to use payment protection insurance for their advantage. Payment protection insurance (PPI) commonly referred to as either payment insurance, loan insurance, loan protection, loan protection insurance, or payment protection are services in which borrowers receive financial help with the financial service attached to the policy in the event they may become unemployed. PPI can be attached to almost any type of financial service including but not limited to store cards, mortgages, bank loans, and car purchases. The lenders used this information to make borrowers feel as though getting payment protection would be a benefit to them.
Misleading Sales Tactics
Oftentimes, the lenders would tell the borrower that payment protection would help in getting them approved for loan all the while knowing that it will not because the lenders are the ones who approve the loans. They used these type of tactics to get numerous amounts of borrowers to sign up for payment protection insurance no matter if they qualified for the coverage or not. The lenders were simply trying to get more money without having to loan more because if a lender had payment protection activated at the time of the loan will more than likely be included with the loan payments. Thereby, entitling the lender to charge interest on the payment protection policies as well as the money loaned generating additional revenue for the lenders.
6 Questions PPI Claims Companies Love to Answer
There are a number of questions consumers have when approaching claims companies. Here are 6 of the most common:
- Can I claim PPI back if I have canceled my PPI policy?
- Can I claim PPI back if I've paid off my loan?
- Can I claim PPI back if it has been over more than six years?
- Can I claim PPI back if I have been divorced?
- Can I claim PPI back if I'm unemployed?
- Can I claim PPI back if I'm sick?
In a nutshell, PPI claims companies love to answer these questions because they can explain just what the claims process is all about and who can actually qualify to file a claim.
What to Do If I Suspect Something Is Wrong with My PPI Policy?
If you suspect that you have been led astray in regards to PPI, a bit of information may be able to help. In order to claim back PPI it must first be proven that PPI was mis-sold. Ways in which PPI can be mis-sold are if the lender has not advised the borrower that payment protection is voluntary or that the borrowers know the requirements for eligibility on the PPI policy. Other ways in which PPI can be mis-sold or if the lender did not lead the borrower know how much PPI will cost or if the lender simply did not tell the borrower they were applying for PPI for the borrower. Any of the above reasons can qualify a PPI policyholder to a refund.
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