What is Payment Protection Insurance or PPI?

When it comes to PPI claims, many people still remain unaware of what these claims are. Generally financial institutions have been systematically ensnaring gullible consumers into buying payment protection insurance or PPI on fictitious counts that have been exposed now. There are several frequently asked questions about PPI claims. Some of these questions have been answered here.

Payment Protection Insurance, popularly known as PPI, is also called as loan protection or PPI insurance. This is essentially an insurance policy which the consumer will apply for to cover in an event that he meets with an accident, falls sick, lose your job or a similar situation. In some situations, the insurance provider will be paying the repayments on a monthly basis for a specific period of time, generally for a period 12 months.

What led to the mis-selling of PPI?

Out of all the frequently asked questions about PPI claims, this has been one of the most regularly asked one in the recent times. To simply answer the question, PPI was mis-sold because of statistics and greed.

Each PPI sale attracted an astronomical amount as commission. This was essentially because these policies were quite lucrative for the overall financial industry since there were bleak chances of complete pay out.

Thus different money-lending organizations chalked out targets to sell these PPI policies. Needless to say, the sales executives received huge amounts in the form of commissions for every policy that they sold.

Thus, the mis-selling practice became much popular and led to stupendous amounts for the PPI compensation claims.

Did the brokers mis-sold the PPI policies?

Contrary to popular perception, it was not just brokers who were mis-selling the PPI policies. Many lenders were held guilty of duping people to the tune of millions of pounds. You may not be aware but your building society or your preferred bank at the high street is also guilty of fooling customers by mis-selling the policies.

How to know if a PPI Refund Claim can be made?

There are several reasons for filing a valid PPI compensation claim. One of the common reasons is that you were not aware that you had the PPI policy and that the policy was sold to you without informing you. There are several more reasons for which you can file for PPI refund claims.

How to make a PPI claim?

PPI claim process should be kick started to reclaim your legitimate money on the grounds that the policy was not appropriate for you or has been mis-sold to you by giving a fake understanding of the cryptic terms by the seller. Many people took out the policy online but were called about the PPI on a later date.

PPI claim form should be essentially invoked into use when financial abuse of varied nature comes into focus. One may have been forced into buying through mild intimidation that the loan applied for is subject to acceptance on purchase of PPI or insurance is mandatory for certain cases. 

This is the grossest form of mis-selling. PPIs may have been flogged unnecessarily on clients who do not qualify for the eligibility criteria such as retired professionals, unemployed or self employed persons, those who have been extended coverage through other policies of same nature or people with pre-existing conditions.

PPI claims should be invariably initiated against institutions whose salesperson was extremely pushy about the policy to the extent that they elicited a dispirited aye from you. The PPI claim form should be filled sincerely paying due attention to the questions put forward therein. If anyone deems that he has been duped by bank, he should write and complain without losing another moment. 

 All essential documents that serve as backup to strengthen the case should unfailingly accompany the claim form. The form should be dispatched by recorded delivery to the lender with a copy of the same retained for future reference.

If the seller exhibits hesitance in processing the claim within reasonable time, one can approach the free Ombudsman service with his PPI claim. However, one should exercise this option as the last resort. A confirmation letter will be sent by the Ombudsman assuring you that the case will be looked into and it will get back to you in the event of scouring for pertinent information. The reclaim can get you a fortune and as such all options are to be exercised to claim back your legitimate money.