PPI or payment protection insurance is a very effective insurance product. However, because bank representatives mis sold the insurance policy, it has become notorious for swindling customers thousands of pounds for an insurance policy they do not have any use for. PPI provides monthly repayments for financing in case the holder faces financial hassle, but because they were initially ineligible for the insurances terms and conditions they literally threw away money to their banks. This short article will explain more about how bank representatives mis sell PPI, the actual terms and conditions of PPI policies and how one can begin and ensure success in reclaiming PPI compensation..
Insurance policies, such as the PPI or payment protection insurance, are really wise investments to make especially if you have a job that entails high risk and you have multiple financing to provide for. In the United Kingdom, taking out a loan, mortgage or credit card is the best way to get the essential needs of every person or family. This means one person might have one to four financings that they provide for. Surely, it would spell great trouble if this person went unemployed or had income problems. This is where the PPI saves them from these financial hassles. However, because of the mis selling of PPI, many holders were actually throwing away their money to banks for a useless insurance policy. By making a PPI claim, the holders can actually reclaim the insurance repayments they’ve made.
PPI or payment protection insurance is designed to provide 12 months of loan repayments for one financing in case the holder faces financial trouble in paying for their loan. Problems with income might come from recovery time for accident injuries or extreme illnesses, which means the holder cannot receive income for the duration of the recovery time. Holders who get unemployed during their loan repayment term can also receive the benefits of the insurance. The holder can only receive the benefits of the insurance policy if they were employed, within the claiming age, in perfect financial and health standing during the time they purchased the insurance policy and until the time they paid for the required percentage of the PPI’s price.
Bank representatives usually market the PPI as a beneficial insurance product and a product of opportunity. It is explained much clearer in this manner. The bank representative presents the insurance policy’s benefits to the customer. Then, to further drive their point home, they mention that the PPI increased the chances of having their financing application approved. Urged by the bank representative, the customer might deliberately sign up for the insurance policy without reading through the fine print. If they do and find themselves unable to comply with one or two of the conditions, the bank representative usually omits such parts. They often use outdated terms and conditions as an excuse and promise to bring a new form for the customer to sign with.
Profit was the main goal of PPI mis selling. Customers, repaying thousands to tens of thousands of pounds for an insurance policy they can never make use of, allows the banks to actually profit millions of pounds annually. It has subsequently allowed the banks to double or triple their profits. Bank representatives, to cope with high quota to fulfill each month, used abusive sales methods to ensure a sale. This also enabled them to guarantee their work performance and earn much commission from the mis selling.
Making an effective PPI claim means knowing how you were mis sold PPI and how you are ineligible for the insurance policy. The terms and conditions mentioned above would help you have an idea and help you see if your employment, health and age record will help validate your eligibility even before the date of purchase. The example of mis selling above should help you understand how you might be mis sold PPI by your bank representative. Should you face any trouble with your claim, you can count on legal help from leading PPI Claims Company – www.ppiclaimsco.org.uk.