Are You Paying For Insurance That You Do Not Need ?
PPI – Payment protection insurance was created to insure the payments against a mortgage or loan, this was intended to cover sickness or unemployment. The insurance was sold alongside things such as personal loans, credit cards and or mortgages. The intention was to provide a level of protection and to cover the loan
However, it is unfortunate that this insurance was often sold to people unknowingly. In many cases, these people had no use for this insurance, and some of them could not even make claims on the policies (I.E. unemployed persons, self-employed persons or retired persons). These policies also did not cover some common reasons for people being absent from work, such as back problems or work-related stress. Monthly premiums for the insurance was often extremely expensive, as well.
The original purpose of PPI was a fantastic idea; however, the problem with it lies with how businesses sold it to consumers. The misselling of PPI policies has gotten many financial institutions in trouble, and many of them have had to pay large fines. Officials estimate that there are as many as 30 million consumers that may be due compensation due to PPI misselling.
data does show that there were approximately 8 policies out of 10 that were incorrectly sold to customers, and in some cases, some people did not realize that they even had the insurance until their statement arrived. There are several reasons that payment protection insurance may be considered to be missold. If a lender informed a customer that payment protection insurance was needed in order to obtain the loan or mortgage, or if they pressurized people into purchasing the insurance; then the insurance was inappropriately sold to them.
Other reasons that this insurance can be considered to be missold are that if the financial institutions did not tell their customers that the insurance was also available from other independent providers, or if customers were not asked if they already had insurance coverage. Finally, in the case of customers not being told about exemptions within the policy such as unemployment, retirement or self employed persons; the insurance can be considered to be mis sold PPI. For those persons, who have PPI policies and who think that financial institutions missold their policies to them, they may have a valid claim for reimbursement.
There are thousands of people who have filed claims and received compensation, sometimes in as little as two months. Concluding, this insurance (PPI) was a form of insurance cover offered by financial lenders, offered to their customers to cover items such as loans, credit cards and mortgages. This insurance was originally meant to pay consumer’s payments when consumers could not pay themselves due to injuries, illnesses or unemployment.
However, in many cases, this PPI was inappropriately sold to customers. For those people, who think that financial institutions may have missold their PPI claims policies to them, they may be due compensation.