Payment protection insurance or PPI is an insurance product that sold by banks and insurance companies in the UK. It covers debt repayments of a policyholder in case he meets an accident, falls ill, is made redundant at work, or dies. It is usually sold when a person is taking out a loan, mortgage, or credit cards. It also comes by other names like Mortgage Payment Protection insurance or MPPI, Accident Sickness and Unemployment Protection or ASI, and Personal Loan Protection or PLP.
The aim of the PPI is to help holders avoid the circumstance of getting buried in debt when they are not able to make regular debt repayments due to sickness or unemployment. However, many people have filed complaints regarding the PPI that was sold to them. Majority of the people are complaining that they were sold PPI without their knowledge, or that they were told that PPI is a compulsory insurance product meant to protect the loans they were taking out.
Studies showed that less than 1% of the total number of PPI holders will not be able to make a claim on their policies. This angered many consumers who felt duped by the banks who sold them PPI. According to consumer and financial ethics, all financial products must be quoted separately and clearly. The banks sold PPI forcefully by making it look like part of the loans that people were taking out.
The Financial Ombudsman Service who handles financial disputes, has a lot of work to do. An estimated three million complaints could be waiting in line at the FOS. Because of the sudden increase in the PPI complaints, many cases are left pending for more than a year, which is quite disappointing for some PPI holders.
Claims companies can be a good option for those who don’t want to go it alone. Claims companies help people to refund their PPI policies. One of the reasons that make claims companies a good choice for people is that they charge no upfront fees. Claims companies only take a share from the refund you will get, which is around 20-25% of the total refund.
The advantage of claims companies is that they will aggressively pursue PPI refund cases. That is because the holder and the claims company share a mutual benefit. Claims companies make winning your case their source of income. If you don’t win, you don’t have to pay them their service fees. However, you must be deemed eligible for ppi claims before you can ask the claims company to fight for you.
You will know you are eligible for a refund if you bought PPI while you were retired, sick, unemployed, or self-employed. You can also make a refund if you were told that PPI is a requirement for the loan you are taking out. If you paid for the PPI in lump sum and were not told that you can pay for it monthly or that it can be bought from other companies, then you have a high chance of making a PPI refund.
If you need help in making a PPI refund or claim, you can contact claims companies online. They have forms which you have to fill in to determine whether you can claim a PPI refund. Fill out these forms and submit them online. The claims company will get back to you to let you know if you have a valid claim.