Payment Protection Insurance is supposed to help consumers feel secure that if something unplanned happens they are covered for repaying their debts, but more and more people are feeling like it is one big con. It has been sold to people who are unaware, borrowers who cant afford it and even people who want it but don’t know they are ineligible.
Most banks cunningly tag on PPI to any loan or credit and bank employees are often forced to sell useless policies in order to keep their jobs. The theory of PPI is great for borrowers, particularly in the recent economic hard times, where people are losing their jobs left right and centre, it should mean that 3 months unemployed doesn’t mean going hungry because of mortgage repayments. But the reality is quite the opposite; there have been almost no cases where PPI has actually helped someone struggling to make repayments.
Fortunately justice can be served and banks and lenders who have mis-sold PPI can be held responsible by the everyday consumer. There is a variety of companies who are able to help with financial lawsuits and many companies who specialise in reclaiming PPI payments.
Most consumers have no idea of the conditions in which the sale of PPI can be considered illegal, if you were unemployed, self-employed or simply over 65, your PPI payments were void and you can reclaim all the money. If the terms of payment, interest and cancellation were not explained to you and if you were told you had to buy PPI from your lender, ask for it back!
Reclaiming PPI payments is your own responsibility but the Financial Services Authority and the Competition Commission have cracked down on the crooked tactics of the industry. They are even fining any organisation deemed to have broken laws on PPI selling.
In 2009 a watchdog ruled that companies are now required to accurately sell PPI to customers ensuring they are not overpriced, customers can chose to opt out at any time and they are completely covered.
If you feel you have been miss sold PPI, then see why Dons LLP can help you with your PPI claim.