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Payment Protection Insurance Claim
November 22, 2009
In case of disability due to an accident, or getting unemployed unwillingly, Payment Protection Insurance or PPI, covers loan payments/repayments in case a person lost his job, or unable to work because of sickness, accident and disability. There are plenty of forms of Payment Protection Insurance, the most famous of which are mortgage and credit card PPI.
The existence of Payment Protection Insurance on loans is essentially good for both the loan issuer and the borrower because it ensures the borrower that they won’t have to fret about paying their monthly loan in case they lose their employment, get seriously ill, or have to take a time out from work because they got into an accident.
Unfortunately, however, certain banks and lenders get sneaky and resort to deceitful and deception just to sell expensive and unnecessary PPI to unknowing customers. In the UK, thousands of people have prepared claims and complaints against their financial lenders because of fraudulent and misleading Mis-sold PPI insurance.
So what is considered as mis-sold PPI? There are different circumstances on why a PPI is mis-sold. Others say that their banks insisted on purchasing PPI for the loans they took, if not they will not be granted the loan. The fact of the matter is, PPI should be optional and should not be forced to someone getting a loan. Just like a car insurance, it is up to the customer whether he or she would get Payment Protection Insurance or not. Things get even more difficult for the borrower if the PPI that was sold to him was tacit or over-priced.
People who are self employed, unemployed, retired, and with medical conditions are often not covered by PPI claims. Thus if someone sold them PPI knowing that the person they are selling it to is under any one of these circumstances, the PPI deal is null and void to start with.
Luckily, customers who want to claim insurance, specifically loan insurance claim, are backed by the Fraud Act of 2006. Customers have also won against several financial institutions due to the help of the Financial Ombudsman Service and Financial Services Authority of England.
PPI claims, together with the assistance of financial aid establishments have granted thousands of people their rightful claims and have deterred fraudulent insurance practices.