Payment protection insurance can be a very useful financial product. It is designed to cover you for repayments to loans, plastic cards and other credit products should you be unable to pay due to ill health or redundancy. However lenders have been misusing PPI insurance for a number of years now and this has left consumers out of pocket by thousands of pounds.
There are many ways that lenders mis sell PPI to their clients. One of the biggest ways is the “single premium” policy. This is where the cost of the policy is added to the loan then sold as “fully protected”. The customer then takes out a loan not knowing they are making interest repayments on the PPI policy as well as the loan.
PPI can add mean a large increase in the amount of money owed by a customer. One example of PPI mis selling is to sell it to retired people who have no working income to protect and therefore didn’t need PPI in the first place.
If you are in a secure job, have other means of financial support and are in good health then PPI cover may be pointless to you as you will most likely never need it. Another problem is those borrowers who have existing medical conditions are being sold PPI insurance.
The terms of this cover do not provide for pre-existing illnesses in most cases. This makes the policy worthless to people with pre-existing conditions as when they try to claim they will be refused. This systematic mis selling of PPI is one of the biggest scams in the banking industry and has destroyed a lot of the faith many people had in the whole financial system.
Now the extent of mis sold PPIs has come to light lenders are under serious pressure to refund customers their money. If you were told you had to have PPI or were mis sold the policy for a number of other reasons then you could claim back your money. If you don’t know where to start then you could take advantage of one of the specialist PPI claim handling companies. They have a lot of experience dealing with lenders and filing complaints with the relevant authorities. This can be a very useful service especially if you are a very busy person or your case if very complicated.
If you have been mis sold PPI on your loan, you can handle it yourself or find a ppi claims specialist like Gladstone Brookes to handle your mis sold PPI claim.
