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What is PPI PPI is short form of payment protection insurance, an optional financial product. It is designed to cover your monthly loan or credit card payments if you are unable to meet the payments through redundancy or being unable to work due to illness or accident. It is available with mortgages, loans and insurance plans to manage timely payments in low financial situations. The product may also be called loan protection cover, redundancy cover, mortgage payment protection insurance (MPPI), accident sickness unemployment (ASU). In UK loan and credit card providers make more profit from insurances sold alongside the loans than on the loan itself. In most cases the insurance cost is more than the interest on the loan. Some mortgages and insurance plans are available with mis sold ppi whereas in case of other loans you may require to buy a specific PPI coverage plan. In either case, it may be mis sold to you. What is Mis Sold: “mis-selling” of PPI is basically when you are sold a payment protection insurance policy either under false pretences, or even sold a policy where you may not have been able to claim should you need to. Few of mis sold PPI examples are as under, if you • were led to believe that you could only take out the PPI at the beginning, and not told that you could buy it at any time in future or could take it from a different company. • were given the full monthly price of a loan including the payment protection, without being told this. • didn’t ask for PPI, but it was added to the policy anyway. • were not aware that including PPI was optional & you were told the insurance was compulsory, or that you would have a better chance of getting the loan approved if you decided to take it. • were unemployed, retired or self-employed when you took out the cover. • bought face-to-face or over the phone it is up to the salesperson to ensure that you understand the terms of the PPI and that the policy was appropriate. If you feel you did not understand the process, then you could be entitled to claim back PPI. • medically unfit due to certain conditions, including diabetes, back pain, a heart condition or history of strokes. • were applying online, and the tick box for including PPI was already checked, then you could be eligible to claim as you would have had to decide against the policy, rather than choosing it. • paid up front for the policy on a loan, but were not told that you could pay monthly you could also be eligible to make a claim. PPI Claim Process Just fill out the form to start your claim process. In as little as a couple month’s time, you could be credited with your claim amount. It involves few simple steps: • Verification of your documents and personal circumstances. • Solicitors calculate the reasonable amount of claim that can be applied for. The claim amount can be partial or total of the money you had paid. An interest shall also be added to the claim amount. • Financial Ombudsman Services is a government backed service for solving disputes between consumers and financial companies without the need to go the court. • If FOS fails, then solicitor will file case in court of law for ppi claim back compensation as per your financial losses. • Entire process may take 10 to 12 weeks to complete. In case of taking FOS services, it may take more than 12 months to complete the process.
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