Today a lot of people are claiming back their payment protection insurance (PPI) from their loans, mortgages and credit cards. PPI is an insurance plan that is often sold along with a loan and is there to protect the borrower in the event that they cannot make their minimum payments due to redundancy, illness or injury. When the borrower is out of work, the insurance is there to make the minimum monthly payments for up to 12 months. Mis-Sold Plans The problem with PPI is that it has been widely mis-sold to consumers. One way it was mis-sold was that many consumers paid for the insurance without even knowing that it had been added on. For example, the lender might have given a price for a "fully protected loan" without letting the borrower know that they were paying extra for a very costly insurance plan. Another way it was mis-sold was by not informing the borrower that the insurance was optional and not compulsory. There are even some instances where the lender told the borrower that they could not qualify for the loan without taking out the insurance at the same time. How much can I get? Before you decide to make a claim for your PPI payments, you'll need to figure out how much you are owed. There are two ways PPI plans are sold: upfront as a single premium that is added to the total cost of the loan, or as a monthly payment. With the single monthly payment, you should have a clear statement of how much you were paying each month over the life of the policy, which is how much you will want to claim back. For a lump sum payment, it can often be a bit trickier to figure out how much you are owed. This is because the lump sum will be a part of the total cost of the loan, therefore generating interest over that time. Make sure you go over the details of the original agreement as well as all current statements to find the exact number you were paying out each month for the mis-sold plan. Making a Claim If you have been mis-sold a PPI plan, you might be eligible to make a claim. The first thing you will need to do is make sure your PPI is still active, or that it was sold within the last six years. This is because most lenders do not keep the original documents after a six-year period. Then, you will need to write directly to the person who sold you the policy - do not write the insurance company itself. This person will be the loan officer, banker or credit provider who is responsible for the original sale. If you have borrowed money from a bank or other money lender by obtaining loans, credit cards or mortgages then you will more than likely have been asked to take out PPI. For PPI claims made simple Call us on: 0800 048 8820"
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