Payment protection insurance is supposed to be an optional enrolment plan that is offered with any sort of financial product which involves borrowing money such as credit cards, loans and mortgages. However many people are now in the process of Claiming back payment protection on loans and other items due to the way that the policies were sold to them. So what is the point of payment protection insurance and why would you want to claim it back? Let’s have a look.
Payment Protection Insurance 101
Payment protection insurance was originally designed to give relief to borrowers if they found themselves in in a circumstance that was out of their control. For example, if a borrower decided to take out a loan and PPI and then lost their job, the aim of PPI was to cover the payments until the borrower was able to return to work.
The problem was that the banks saw how much profit could be made from the payment protection policies and so encouraged their staff to sell the policies to people who did not need them. This led to aggressive sales tactics which eventually led to disgruntled customers. This year alone, thousands of cases have come to light concerning borrowers claiming back payment protection on loans and the FSA has been forced to issue new guidelines.
Claiming PPI Back
Due to the aggressive sales tactics and the mis-sold policies, the FSA has put forward new guidelines concerning the sale of payment protection policies in addition to forcing banks to repay all insurance that was mis-sold. Thousands of people throughout the United Kingdom are now claiming back payment protection on loans either on their own or with the help of a financial advisor.
If you were mis-sold PPI for example by being self-employed, unemployed or retired when you took the policy out, or if you had no knowledge that you were even paying for PPI until recently you are well within your rights to claim back payment protection on loans, credit cards or even your mortgage. You may find that you will receive a hefty sum depending on the length of time you have been paying for the policy.
Claiming back payment protection on loans has never been easier and with the FSA now helping out, a large percentage of cases are successful.