Recovery of Payment Protection
If you've recently been denied policy benefits by an insurance company that provides payment protection insurance (PPI), you may want to consider reclaiming PPI by filing a claim against the party that mis-sold you the cover. If a lender sells a PPI cover to someone who is ineligible for coverage, this is considered mis-selling, and lenders are therefore obligated to provide a full refund of the PPI policy to the borrower within eight weeks. If you're interested in pursuing the recovery of payment protection charges caused by a mis-sold PPI policy, you may want to consider the information contained in the following paragraphs.
Recovery of Payment Protection Analysis
It is estimated that at least 70,000 UK consumers will pursue the recovery of payment protection during 2011. Many customers who are having financial difficulties and who have below average credit are so anxious about the risk of being denied for the loan, that they're willing to pay more for a PPI Policy. Around 30% of the cases brought before the Financial Ombudsman Service (FOS) are related to debtors claiming back PPI on loans or credit cards.
How Likely Is It to Receive Full Recovery of Payment Protection Charges?
Now that so many financial authorities in the UK have begun reviewing and publicly scrutinizing PPI, the recovery of payment protection is becoming less difficult and less time-consuming. Beginning the process of reclaiming PPI is as simple as filling out a claim form and engaging in a no-risk consultation with a PPI claim specialist. Given the high rate of honoured PPI refunds during the past 6 years mainly because of heightened attention by multiple financial authorities, every client has a very good chance of obtaining total compensation in 2011. A typical client can secure complete PPI repayment within 4-8 weeks, which is the same time it usually takes for just fifteen percent of PPI policyholders to claim even the slightest amount of benefits.
Reasons for the Recently Increased Recovery of Payment Protection in the UK
From the 2006 to 2010 period, financial authorities have released data and studies pertaining to the mis-selling of PPI policies. The studies revealed that nearly 95% of the policies reviewed were mis-sold, which is a startling statistic considering there are more than 20 million PPI policies currently in existence in the United Kingdom, and each year 7 million more are sold. Around sixty percent of the incidents examined pertained to various types of loans, while the remaining 40% pertained to home loans and credit cards. There were roughly 30,000 PPI claims reported against dishonest creditors that partook in the mis-selling of PPI policies during 2009. Every year approximately 7 million PPI policies are taken out, resulting in the generation of approximately £5.5 billion in it for insurance companies and lenders that facilitate the sale of these policies.
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