All You Need to Know About Making PPI Claims
One of the hottest topics in the world of consumer finance at the moment is that of payment protection insurance claims and even if you have not paid much attention to it you should start taking notice. The controversy surrounding PPI claims is a complex one that needs some explanation but, when you understand what it is all about you may find you are entitled to claim compensation.
Basically, if you have taken out a loan or any credit agreement – including a mortgage – in recent years you are likely to have been paying into a PPI policy, and you may be entitled to reclaim PPI charges as a result. Let’s have a closer look at what PPI is, and why there is such a fuss about it at the moment.
The Mis Sold PPI Saga and What it Means to You
The best way to begin our journey into the world of PPI compensation is to explain in simple terms what it is. Payment protection insurance is a type of insurance policy that is designed to keep up the repayments on a loan, mortgage or other credit agreement should the borrower find they are unexpectedly out of work and unable to meet the repayments themselves.
This could be thanks to involuntary redundancy – the most commonly seen policy – or in some cases you may be covered for loss of work thanks to illness or accident. The policy will typically cover a period of a year, or two years in some cases. Many people have these policies, and yet you may not be aware that you are paying into a PPI policy.
This is where the controversy that has led to the publicity surrounding payment protection insurance claims comes into the story, and it is worth looking back at how it happened.
How the PPI Compensation Saga Came About
A number of years ago the governing bodies that look after consumer finance received a number of complaints from borrowers who believed they had been mis sold PPI policies. The allegations were considered serious enough to warrant an investigation.
When the investigation had been completed the results were quite astounding: the discovery was that mis-selling of PPI was actually widespread. To shed some light on why and how this had been happening, and why it has led to thousands of people being able to reclaim PPI charges, we have to consider the way in which PPI was being sold.
The rules surrounding this area of consumer finance have always been strict, and include the proviso that a borrower is allowed to shop around for their own insurance policy. Despite this, it was discovered that many lenders – high street names among them – had mis sold PPI policies to consumers by leading them to believe they were obliged to take out the package deal offered by them, the lender. This type of mis sold PPI forms the basis of most PPI claims cases underway at the moment.
Furthermore, it was discovered that some people had not even been told they were buying a PPI policy, and in other cases there were instances of people being sold policies that would never have been any use to them. These are all cases where PPI compensation may be worth pursuing.
Payment Protection Insurance Claims – How to Reclaim PPI
If you think that you may have a case for making PPI claims for unfair charges you should consider engaging a professional to do the job. There are many solicitors who specialise in the area of payment protection insurance claims and you can rely upon their expertise and knowledge to give you the best chance of success. It may not be as expensive as you believe to engage a solicitor, as most who operate in the PPI compensation arena will offer you a no win, no fee deal in which you pay only if you are successful with your claim. You will be able to find a suitable solicitor by running an internet search, and should look for one that is well established.
The law has decreed that, following the revelations of mis-selling, it is your basic right to reclaim PPI charges that may have been unfairly levied upon you, and the best way to do this is to look to the professionals for help.
Once you have found a solicitor to handle your case you will simply need to provide them with all the information regarding the policy and where, and when, it was sold, and you may find that you are entitled to a considerable compensation payout.