PPI Claims – What’s The Story?
The numerous cases of PPI claims in recent years have resulted in on heck of a hefty bill for the payment protection insurance industry. But why exa...
The numerous cases of PPI claims in recent years have resulted in on heck of a hefty bill for the payment protection insurance industry. But why exactly are so many consumers now deciding to claim back money they’ve spent on PPI?
Let’s start by examining the product itself. Payment Protection Insurance, as its name might suggest, is designed to protect those who take it out. It is essentially a type of insurance for consumers taking out mortgages, credit cards, hire purchase agreements, loans and other financial products. The concept of PPI is that the consumer is protected if circumstances that are not their fault, (such as a cut in income caused by redundancy or illness) mean they find themselves unable to meet their monthly repayments. This, surely, sounds like a wonderful concept? And in theory, it really is.
The issue surrounding PPI claims isn’t the product itself but the way in which it has been sold, or rather mis-sold, to potentially millions of consumers. It recently emerged that numerous consumers had been made to believe that PPI would either increase their chances of successfully applying for their loan or other financial product. In other cases, consumers had been told that PPI was compulsory.
This is just two of the many examples of PPI mis-selling. Others include people being sold policies on which they would never actually be able to claim on, for example those who were unemployed, self-employed or retired at the time of taking out their policy. There are cases of people not being given time to read the terms or others only finding out they even had PPI months later! The list goes on.
Any company which sells or brokers any form of financial product or service to a consumer has a responsibility to make sure that the said consumer is completely aware of the terms. In the cases that have emerged in recent years, the lenders and brokers have failed and this is why there are now so many PPI claims taking place.
Learn more about and find out if you could claim today!