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Know The Details When You Get A Loan, Or You Might Be Shocked When Filing PPI Claims

May 7th, 2011

Payment Protection Insurance, or PPI, is a type of insurance consumers can obtain to safeguard the repayment of a loan. It is also referred to as income protection insurance. PPI claims can be made if you have lost your job due to redundancy, had an accident or become disabled. It will cover your loan payment for you for a specified time.

There is a predetermined period of time you must be out of work or disabled, usually one to six months, before the policy will begin paying for you. It then makes your payments for up to a year.

PPI is offered when you obtain revolving credit or mortgages. Some lenders hint that you must take out the insurance to get the loan, but this is not the case. It is an optional type of insurance that you are not required to purchase. Some lenders will only offer low interest rates if you choose to buy it.

Consumers have found that the costs for PPI have been included in the cost of the loan, something they did not agree to. Know what you are paying for and ask to see the loan repayment plan. Compare it with and without PPI so you will know exactly what the costs for the PPI are. If it is worked into the loan, you will end up paying interest on the PPI costs.

One of the more controversial aspects of this type of insurance is that, since agents receive commissions for policies, they use hard-sell or deceptive tactics to encourage applicants to purchase it. In many cases the policy has no real value for the customer.

They do not cover all types of unemployment, usually only if you lose your job for redundancy. Self-employed people gain no benefits from this type of policy, and can actually be required to obtain a part-time job. Medical conditions deemed pre-existing are not covered. Those families with dual incomes or substantial savings may not need this type of program at all.

There are some products worth looking into. Stand-alone insurance that can be tailored to meet your specific needs may be more affordable and actually provide coverage that is worthwhile.

There are some concerns that consumers have been mislead by lenders. If you believe you have purchased insurance that you did not want or were not aware of, there is recourse for you. You may be able to recoup what you have paid in under false pretenses. When refinancing a loan, check to see whether the costs for PPI from the first loan are included in the costs of the refinanced loan. This is called churning, and is illegal.

When obtaining PPI, read the fine print to make sure you know what you are buying. If you wait until you submit PPI claims, you may find that one of the exclusions keeps you from receiving the benefits you believed you paid for. Look at your whole financial status before you decide to buy PPI.

Do you feel that you’ve been misled by your lender? Get comprehensive info on Mis Sold PPI claims now in our super guide to everything you need to know about how to use PPI Claims Calculator


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What Is A PPI Claim

October 21st, 2010

There have been lots of adverts on TV and in the Newspapers recently by many different companies offering PPI Claims. These companies are offering to claim back a form of insurance that you have paid on a loan, mortgage or credit card that you have been mis sold – but how simple is it?

Basically, if you have taken out a loan in the last 6 years, you probably have grounds to make a claim, some PPI claims can go back as far as 10 years ago!

Payment protection insurance (PPI) is added to loans to help protect you against being unable to make the payments. It was all sorts of banks and lenders that added this insurance onto loans and it was actually added onto some mortgages.

Why can you claim it back? There are many reasons that PPI claims are successful, one of the biggest causes of a mis sold payment protection insurance claim is the fact that many loans had these policies included without asking the customer properly, adding on thousands to the cost of the loan!

You can visit a solicitor who can represent you and help you claim back your Payment Protection Insurance. However solicitors usually charge an hourly rate and this can become very expensive very quickly. The other option is is ask a claims company to represent you and get back the money that is rightfully yours. You should look at registering a claim as soon as possible.

Of course there is nothing stopping you from making a PPI claim yourself. It is important to be aware that the process can take time, banks will always deny liability and and the process can be complicated. Banks will sometimes try and take advantage of customers managing their own claims by offering settlements that on the surface seem like a large amount but in reality are only worth about 30% or 40% of the actual value of the claim – you have been warned! Hiring a Claims company on a no win no fee basis means that you don’t have to deal with any of the administration and can just wait for your compensation.

Gladstone Brookes are the largest PPI Claims company based in the UK. They handle over 4000 PPI Reclaims a month and regularly consult with industry regulators.


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Mis Sold PPI – What Is It And How Does It Affect You

September 25th, 2010

PPI is short for Payment Protection Insurance. This type of insurance is supposed to guard those people who take out loans, mortgages & credit cards in case they are unable to make their monthly payments. The main reasons for not being able to make payments are being made unemployed, or becoming ill and being forced to stop work whilst you recuperate. PPI is supposed to cover payments will only cover repayments in certain circumstances so it is important that the policy is suited to each customer’s individual circumstances.

There are various different ways that PPI is being mis sold by banks and lenders in the UK. Adding PPI into loans withoout asking if the customer wants it is extremely common in the UK, there are many cases of banks telling their customers they have to take out PPI because they have dangerous professions or they are considered a credit risk.

Up to 40% of a loan can be written off with a successful PPI claim – along with this the borrower is usually entitled to 8% interest per annum and any interest made on repayments.

The cost of the PPI scandal is huge, with banks making 5.5Billion a year profit out of misselling PPI to their customers on loans and credit cards in the last 10 years.

One of the many examples of being mis sold PPI is if you have a pre existing medical condition such as Diabetes or Eplilepsy. If you are made unemployed or are off sick due to a pre existing condition your policy will not pay out. Self-employed people are usually excluded as well. If your bank didn’t check this with you then you have been mis sold.

If you are one of the thousands of people who have had a PPI mis sold then you could be in line for a payout worth thousands of pounds and get your money back.

PPI Claims Unique version for reprint here: Mis Sold PPI – What Is It And How Does It Affect You.


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PPI Might Have Set You Back Thousands Unknowingly

August 28th, 2010

Payment protection insurance (PPI) might actually be an invaluable security for the purpose of anyone with a family unit, house, as well as bills. PPI seemed to be developed with the idea to assist borrowers or perhaps credit card holders help repay monthly bills from 1 year to two years in the event they were not able to work. The issue which has been taking place is actually a large number of corporations have mis sold payment protection insurance to customers.

This became known a few years ago that people had been sold PPI unknowingly, or perhaps devoid of the information. Some actually were told the insurance was required. There are a lot of ways in which you may have been mis-sold. The truth of the matter, if you took out loans or perhaps opened a credit card from 2003-present you most likely were mis-sold this insurance.

Some facts that have been revealed not too long ago have established some appalling figures to the premiums consumers have been billed. In some instances over 50% of the actual loan amounts had been added. Unsuspecting borrowers would have this amount tacked onto their particular loan installments along with the additional finance fees. A good example of this would be for someone which took out a car loan for 4,300 pounds the PPI charges were 2394 pounds, this is 56% of the actual loan amount. Take the total of them as well as include finance fees, and your 4000 car has become over 8000 or even 9000 pounds. What is additionally a alarming fact is a good number of consumers had no clue they actually had ppi insurance. So this means in case they were out of work they would not have known they may make a ppi claim.

In brief, here are a few an array of prevalent ways you might have been mis-sold payment protection insurance: you were not asked regarding previous medical conditions, you were never asked just how long you had been employed at your latest job, you were not shown the policy fees and payment break down, or you were not asked had you been self-employed.

If you think you fall into one of these categories, it is advisable to learn more information in order to make sure you are indeed eligible to file ppi claims. The recourse to get recompensed should be to gather all your records, if you still possess the payment receipts, and other information and facts. After that is to send a letter to your loan provider and inform them you feel you were mis-sold ppi and you want to reclaim the money back. Make sure to include all of your specifics and your account number. Produce a formal business type notice. It is possible to find many examples and templates on-line should you desire.

You may wish to speak with a ppi claims organization whom can help you make your reclaim, most will not charge you upfront fees, and only get paid if you win the claim.

To find out if you could have been mis-sold payment protection insurance either with your knowledge or without your knowledge, you can go to experts in the field of ppi claims who have an plethora of information on their website, or they may help you with your claim, visit Simplicity Claims now.


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PPI Claims And Penalties Cost Financial Institutions Millions

August 28th, 2010

If you reside in the UK and have applied for a loan, mortgage or just a credit card over the last six or so years, you have most certainly been mis sold payment protection insurance. It has been established a growing number of larger banking companies have already been discovered to utilise questionable practices to be able to encourage the particular customer they must purchase PPI. Most of these sales agents acquired a sizable commission for each purchase hence mis-selling devoid of bearing in mind what was in the best interest of the borrower.

This article list the top 4 penalized finance institutions with regards to non-compliance with their sales of PPI to applicants.

Alliance & Leicester were fined 7 million by the FSA. If you were sold PPI in 2003 to 2007 by Alliance & Leicester the odds are that you were one of many victims of mis-sold insurance. It has been suggested that it ended up being over 210,000 policies which were mis-sold.

HFC Bank LTD was fined 1,085,000 by the FSA. In case you procured a loan in 2005 to 2007 by HFC Bank it is likely you mis-sold PPI, it is said that 75% of financial loans obtained during that time period were mis sold payment protection insurance, estimated at 163,000 policies.

GE Capital Bank has been fined 610,000 by the FSA. In 2005 around 850,000 policies were sold in 2005 alone, by store employees for people with store credit cards as well as credit cards and financial loans.

Loans.co.uk had been fined 455,000 by the FSA. This company mis-sold ppi to over 14,400 customers and also the records might be climbing.

These are just a few of the banking institutions whom were guilty of the mis-selling. If you feel you are a victim of this misdealing it is possible to seek to reclaim your wasted money as well as receive a statutory rate of interest of 8%.

A large number of consumers file their own ppi claims independently by simply get together all their material and sending a formal letter to the lender. A well-known technique these financial institutions are utilizing is sending you a denial letter, do not stop trying. Write them yet again, and advise them to reconsider and if they decline again that you will likely be taking your ppi claims to the Ombudsman.

Often the finance companies will send a pay out offer, normally a low ball sum. You can either agree to it or perhaps decline it. You may desire to send them a follow-up saying you will be satisfied with a certain amount, but make sure to stipulate “without prejudice”, by doing this they cannot use it against you later.

To conclude, if you are positive you were mis sold payment protection insurance, after which begin your claim right now. You could speak to the FOS and ask them to help you. You may also get in touch with ppi claims pros.

To figure out what additional banking institutions were implicated in mis-sold payment protection insurance complaints, you could check out experts in the field of ppi claims that have an abundance of information and facts on their own internet site, or assist you with your claim – visit Simplicity Claims today.


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Payment Protection Insurance Claim Guidelines

July 15th, 2010

Customers, who have payment protection Insurance, or PPI attached to a loan they have taken out, face a lengthy battle in the event they wish to claim back the repayments they have made towards the cost of the insurance. Payment Protection is an add on to loan agreements, credit cards and other financial loan arrangements that covers the loans repayments in the event the customer can no longer make the repayments through job loss, injury or illness.

In many cases, the customer talking out the loan had been given the wrong advice on PPI, or had been given to wrong PPI altogether i.e. a product that did not cover them for the things it was supposed to. Furthermore, many customers had been totally unaware that PPI payments had been added onto the total cost of their loan repayments, this is where the legal battle of PPI Mis selling begins.

There are steps you can take to claim you PPI back if you believe you have a genuine mis selling case, begin by asking yourself the following questions:

Did your policy start within the last six years? If you can answer yes to this, whether it is still active or not, then you should consider reclaiming. If you do not have the correct paper work or documentation, request it from your lender.

Was your policy taken out more than six years ago, but is still active? Your chances of reclaiming here are reduced; however there is still a chance that you have a valid claim. Again, if you no longer have the paper work, then ask for a copy.

If you took out the plan more than six years ago and the contract has ceased, plus you do not have the paper work then it is doubtful that there will be accounts of the loan and unlikely that the claim will be triumphant.

Have you already claimed on the policy? If you have already claimed on the PPI policy, then you can still submit a claim if you believe you had been mis sold for any reason. However as you have claimed, you must be aware that your chances of success are slim, however one possible outcome is that you will be able to cancel the agreement.

If you believe you have been Mis Sold Payment Protection Insurance ask the experts to help. Contact Donns LLP to help Claim Payment Protection Insurance back.


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FSA Gives PPI Victims Extension

June 19th, 2010

The Financial Services Authority (FSA) has revealed new plans to extend the deadline to consumers who have made a complaint about surrounding the mis-selling of Payment Protection Insurance (PPI) policies.

The temporary rule imposed by the financial regulator allows those who have recently complained about their purchase of a PPI policy some additional time in which to then refer their case or complaint to the Financial Ombudsman Service (FOS) for review.

The time limit to refer cases to the FOS is usually a six month period, however this has now been suspended until the 27th October 2010, but only for complaints that have been lodged and have received a final response from their PPI provider between the dates of 28th November 2009 and 28th April 2010 inclusive.

The Financial Services Authority says it has been working on a long term solution to the PPI scandal. The long term solution is thought to detail how customers should be treated when complaining about a PPI policy they have taken, the action also ensures how that recent PPI complainants are not disadvantaged.

In the latest annual report the Financial Ombudsman Service ( FOS) revealed that PPI related complaints amounted to around 30% of all new financial related complaint cases in the year to the end of March 2010.

The financial watchdog said that it had dealt with nearly 50,000 PPI complaints, compared with just 31,066 over the previous 12 month period. Whilst a proportion of these were related to PPI claims, the vast majority where related to complaints about how customers had been sold their PPI product.

On average, it is thought that PPI related complaints amount to around 135 each day. However many of these complaints are being automatically rejected by the insurance providers out of hand upon receipt. The FOS on the other hand, upholds around 90% of the claims and PPI related complaints they receive.

To Claim Payment Protection Insurance ask the experts to help. Contact Donns LLP to help Claim PPI back.


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Competition Commission Set To Ban PPI

June 15th, 2010

Over the last few years the financial world has suffered some heavy losses due to the economic downturn. And at the point where banks and other financial institutions thought they had hit rock bottom, the majority of the UK population that had been misold Payment Protection Insurance (PPI) began to realise that they could claim their cash back.

PPI is ‘insurance’ sold when you take out a loan. The idea behind PPI is a sound one, for example, if you take out a mortgage and cannot pay the repayments due to illness the PPI would pay your mortgage for whatever period the amount of PPI taken allows, a good idea.

Unfortunately for the consumer, and now the banks, PPI has been appallingly misold. Consumers were either given inappropriate cover that would never payout, they were told it covered areas that it did not or in the worst cases they were not even informed the cost of the PPI had been added to their loan repayments.

This type of insurance has become a lucrative one for the banks. Estimations show that PPI generates 4 billion pounds per annum for financial institutions. However, we now have a situation where thousands of people are paying their cash into a scheme that is of no use to them whatsoever.

The Competition Commission has made it clear it intends to ban the sale of PPI at the point of sale. This allows the customer to look around and choose the best PPI for their needs if they see it necessary to do so. And on top of that millions of PPI customers are claiming back money they have unnecessarily paid out, to the tune of 177 million in the first 11 months of 2009.

This decision means that the banks will no longer be able to sell this highly controversial insurance product at the time they decide to borrow, or during a fixed term after they have taken out the loan.

There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice


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Can You Make A PPI Claim?

May 29th, 2010

In January 2005 the sale of PPI (Payment Protection Insurance) policies have been regulated by the FSA (Financial Services Authority). The rules set by the FSA are very clear about what firms and advisers selling PPI policies should do at the time the policy is sold to the consumer. Any breach of these rules can see the policy labeled as what is now commonly known as ‘mis sold’ or ‘mis selling’ a policy.

If you have a credit agreement in place, be it a credit card or mortgage agreement, and you took out PPI then you should have been made aware o the following terms. If you were not made aware of the following terms at the time of taking out the PPI then it is likely that you have a case of mis sold PPI and can then escalate this to a PPI Claim.

Your advisor should have made you aware of the following information:

The advisor should make it clear whether the PPI is optional or not

The advisor should also make you aware of any policy exclusions and then check whether any of these exclusions apply to you.

The advisor should make it clear whether the PPI is optional or not

If the policy was a single premium policy, then the advisor should have made you aware that the cost of the policy would then be added to the loan or finance agreement and that interest would then be applicable on the policy.

The advisor should make it clear whether the PPI is optional or not

The rules set by the FSA are very clear. They state that you must be given enough information at the time of purchasing the insurance so that you are fully able to make an informed choice as to whether the policy is right for you. After all, if you were not informed about interest costs you cannot fully calculate the costs of repayments and so you may not actually be able to afford them.

The FSA set out their rules so that they are they clear and concise. The FSA state that you must be given enough information to allow you to make an informed decision at the time you sign up and agree to your PPI. You will need to be armed with this information so that you can fully understand and calculate the costs of the PPI including interest rates and rates of repayments.

There are many experts out there to help you Reclaim PPI contact Donns LLP to Claimback PPI.


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Misold PPI Claim Victim 8k Better Off

May 26th, 2010

A woman from South Shields has successfully managed to have 8.000 written off her MBNA credit card by a judgment at Newcastle-upon-Tyne County Court. The Judge ruled that she was falsely misold PPI (Payment Protection Insurance) when she took out the credit card back in 2002.

Mrs. Thorius, 49, applied for the card to enable her to pay bills and buy small gifts for friends and family. The card had an initial limit of 1,500. Mrs. Thorius was however, unaware that she was also paying thousands in add-on fees on top of her card balance. The credit card balance quickly rose to an astonishing 8,000.

Lender MBNA was trying to sue the mother-of-three, from South Shields for the remaining balance on her Sunderland AFC-branded credit card. Although Lynn was able to pay the bill, her circumstances changed when her full time job changed to part time house, which added to her financial pressures.

Although Lynn was able to pay the bill, her circumstances changed when her full time job changed to part time house, which added to her financial pressures. MBNA began to peruse the debt, calling 3-4 times per day.

Claims management company Cartel Client Review, who successfully defended Lynne, said today that the ruling is a legal first.

“It will change the way banks lend money and issue credit cards. We went to court because we knew we had a strong case.”

‘It was an incredible victory for us, and one we are immensely proud of.’

‘MBNA acted in a disgusting manner. They harassed this woman at all hours of the day and night to force her to pay for something she never even asked for.

“MBNA acted in a disgusting manner. They harassed this woman at all hours of the day and night to force her to pay for something she never even asked for.

There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice


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