Home Finance Payment Protection Insurance and Its Repercussions

Payment Protection Insurance and Its Repercussions

Payment protection Insurance schemes were conceived to compensate the liabilities an individual has in case he is not able to meet his obligations. freeppicalculator.co.uk served as a perfect solution in cases where a person is unable to repay his loan, credit card payments or other debt dues. This insurance should be sold only when a consumer wants to use it and not as part of the loan arrangement. Once you identify the policy provider, you can approach the building society or bank concerned for confirmation regarding your payment protection insurance. With the necessary files and paperwork, you can claim a refund from the bank. Even if the bank rejected your claim and you are convinced of your eligibility for the claim, you can still approach a Financial Ombudsman Service (FOS) which will verify your claim and order the bank to refund you.

PPI Procedure

Payment protection Insurance is used to cover repayment for a minimum duration of one year. Even if after 1 year the person is not able to repay, he has to find some other means of paying the debt. This type of insurance is sold along with the loan, credit card or mortgage taken. If the claim is done, the money will be taken by the company that issues the loan, credit card or mortgage, though it is the borrower who has bought the policy and paid for it.

Payment Protection Insurance and Its Repercussions

Mis-selling Racket

Though PPI was introduced as a method of helping the consumer, financial institutions have turned it into a money spinning racket of late. Some have made the PPI as part of the loan amount without the consumer being aware of it. There are other companies that sell the policy to customers who do not know anything about it. Though many people have a PPI policy, they do not know about the factors involved and the eligibility they have for claims.

How to Deal with Mis-selling?

The main objective of a Payment protection Insurance policy is to enable the debtors pay in case they overlook to spot their liabilities. But this insurance policy should be offered only to a person who qualifies for it. The policy will be useless if a borrower is not eligible for claiming the money in case of due payments on loans. It is therefore necessary for consumers to look into the conditions and terms, and other additions while they avail a loan to avoid issues later on.

Applying for a Claim

For getting a successful PPI refund with freeppicalculator.co.uk, you need to follow certain steps.

  • Gather all the relevant documents and also make copies of them. The papers related to the policy you have taken and the proofs of payments you have made are important for getting the refund.
  • You have to write a letter to the loan provider that issued the policy to you. freeppicalculator.co.uk can be done using the Money Advice Service template or the form that most banks feature on their websites. This is the same form that is used by a Financial Ombudsman service and also the claim management companies.
  • If there is no response for 8 weeks from the time of complaint, you can approach the FOS.

If still you are not anywhere near getting a claim, you should think of availing the service of a claims management company. You can visit the site freeppicalculator.co.ukto know more about the claims procedure. Though there are many companies that charge atrocious amounts as fees and have unrealistic stipulations, there are a few which have a well laid out and legal policy that will serve your purpose properly.

Leave a Reply