Can You Reclaim PPI Charges?
For many the subject of payment protection insurance is a baffling one, but it still remains a fact that many people have the right to reclaim PPI charges that they are considered unfair. The situation arose because it has been discovered that many lenders were breaching rules surrounding the selling of PPI, and the regulations have been heavily revised as a result. How do you know if you can claim, or if you have a PPI policy? Read on and we will explain all!
What is PPI?
Payment protection insurance (PPI) is a term that covers a wide variety of insurance policies. When you take out a loan, a mortgage or any form of credit agreement you will have to prove that you can keep up the repayments. You may also be required to take out an insurance policy that will help with repayments in the unfortunate event you become out of work. While PPI usually covers you in the event of involuntary redundancy only, there are some policies that may include cover for loss of earnings thanks to accident or illness.
So, if you have been party to a loan, mortgage or credit agreement recently the chances are you will have a PPI policy. How do you know if you can reclaim PPI charges? Let’s explain what the scandal is all about.
Why All the Fuss about PPI?
Some years ago there were a number of PPI complaints regarding the alleged mis-selling of PPI, and the regulatory body that looks after consumer finance decided to investigate. What they found was, to say the least, surprising, for many well known lenders were found to have been mis-selling PPI policies on a regular basis.
To explain simply, there are regulations surrounding how, and where, PPI can be sold: the borrowers should have been informed that they were entitled to take out a PPI policy from someone other than the lender. Instead, the lenders were routinely selling borrowers their own – expensive – policies without explaining the right to shop around. This is the most common reason to reclaim PPI, but there were instances where people were not even aware they were paying into a PPI policy.
As a result the rules surrounding PPI were heavily revised, and it is now against the regulations to sell PPI at the point of sale of a loan, or to sell it within one week of granting a loan, mortgage or credit agreement.
How Do I Reclaim PPI Charges?
If you believe you have been mis-sold PPI and want to reclaim PPI charges you should get in touch with a solicitor who has experience in the field. He or she will put your case in the best possible way, and will give you the best chance of success. If you look for one that offers a no win, no fee deal you will also be asked to pay a fee only in the event your claim is successful, so you won’t be saddled with a major expense and receive no payment.
Remember, it is your right to reclaim PPI charges that are deemed to have come about thanks to mis-selling, so do not delay, get in touch right away and get back what is rightfully yours.