Missold Payment Protection Insurance And It’s Implications
Anyone who has paid Payment Protection Insurance (PPI) on credit cards, loans, mortgages and car finance could have been potentially missold the product. Payment Protection Insurance is designed to protect consumers in the UK who would be unable to meet repayments on credit cards and loans in the event of losing their job or becoming ill. In such circumstances, in theory, the payment protection insurance should cover those payments.
Some companies still undertake unscrupulous practices even though regulators have clamped down on the misselling of payment protection insurance. Millions of individuals in the UK have bought insurance that is of little use to them, and discovering such cases is vital to ensure that households are not paying for products that are of no benefit. Many consumers were sold PPI as a condition of being accepted for the loan arrangement and in many cases the customer was not aware of having purchases the product at all. Such situations result in people having policies that may not offer the requirements needed, or provide insurance for circumstances that are already covered by the household’s alternative products.
Missold PPI is not acceptable by any financial institution in the UK, and as such, those who are found guilty of having made such sales are obliged to provide compensation. Even if insurance policies have been missold through genuine error, companies are responsible for compensating consumers. Individuals who believe they may have paid PPI on their financial agreements are advised to check their products to make sure they have not been missold a product which could have been offering a worthless service..
Many UK consumers are really surprised by the amount of PPI they have paid over the years on credit cards and loans and in particular, the vast amount interest they have paid on their PPI premiums. It is often the case that the Lender, particularly credit card companies, have been charging a very high rate of interest on the premiums and when a PPI claim is upheld all the PPI premiums plus interest on the premiums and also a payment for statuatory interest is added to the settlement. In many cases the offers of settlement run into thousands and thousands of pounds. Payment protection insurance is now widely recognised as being potentially missold and now millions of consumers have the right to seek financial redress