Follow Us on Facebook Follow Us on Twitter Follow Us on Google+ Follow Us on Pinterest Follow Us on Tumblr Visit our YouTube Channel Subscribe to our Feed Subscribe via FriendFeed

Connect With Us

Do Not Forget About Potential PPI Claims

by Jim ONeil on June 28, 2011

in ppi payment protection insurance

Consumers were the winners in the Judicial Review decision regarding misselling of payment protection insurance (PPI). Creditors like banks are now wading through thousands of PPI complaints that they have held for months or previously rejected.

They have allocated £9 billion to compensate those who were missold PPI.

Consumers who entered a credit agreement within the past ten years more than likely were sold PPI along with their loans. This financial insurance policy covers payments for loans and other forms of credit should the borrower become sick, be made redundant, or die. When sold properly, PPI can be very helpful to any resident of the UK.

The problem with the current situation is that creditors added PPI to loans without consumers being aware of why they needed it, what it encompasses, and how much it costs. Many were told that PPI was compulsory, which is not true.

Others were not informed of why it was added. Before adding it to a loan, lenders are obligated to tell customers what the coverage includes and how much it costs.

Some lenders did not inquire about consumer medical conditions before adding PPI to a loan. Based on their medical history, some consumers cannot be covered under PPI. They are therefore paying for insurance for which they cannot file a claim.

To identify whether they have PPI, consumers should check the original loan agreement to see if loan protection insurance or PPI is listed.

Those who have loan agreements that are now closed may be entitled to restitution. Claims can be filed for policies as far back as ten years. Some people have realized they are entitled to receive thousands of dollars in compensation for a policy that they were not even aware they had.

Their cheap loans have became even cheaper just in time to go on holiday.

Comments on this entry are closed.

Previous post:

Next post: