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PPI – Don’t Dismiss it Out of Hand

With redundancies in both the public and private sector set to rise even further in the coming months, Payment Protection Insurance (PPI) is a product which many homebuyers should not ignore or dismiss out of hand.  Despite the scandal surrounding the mis selling of PPI, it is a safety net which millions of people can still benefit from.  In the event of redundancy, sickness or injury, this product was designed pay out a regular monthly sum: enough to cover mortgage or personal loan repayments.

PPI benefits typically, last for one to two years, but there is often lengthy waiting periods before these benefits are paid to customers. For example: if a person is made redundant and receives payment in lieu of notice – then they will only begin to receive their insurance cover payments, after this period has finished. Just one of the “clauses” usually not pointed out to people when signing up!

PPI is especially useful as only a small number of homebuyers are able to claim benefits which would cover mortgage interest, when many will have a partner or spouse who is still employed.  Also, you have to be unemployed for 13 weeks to qualify for these benefits, and even then it will only cover interest payments on loans up to a specific amount.

Payment Protection Insurance was grossly mis-sold in the past and was also massively overpriced. But that doesn’t mean it is a bad product or that it is worthless.  It simply means that anyone taking out a mortgage or a personal loan should shop around for a good protection policy, at a competitive rate. Oh yes, and do check the small print very carefully. Experience has shown that you cannot trust or believe all that banks say or advise.

Borrowers, in the past, were actively encouraged to take out PPI even though there was no way they could have ever benefited from it. Many unsuspecting borrowers were blatantly lied to and told that they needed PPI in order to be accepted for the loan or mortgage, or that it would greatly improve their chances of being approved for one. Some even had it added to the cost of their loan without even being told that they would be paying for it.

Now that compensation is finally being paid to customers who have been poorly advised or mis sold PPI you should perhaps check whether you have a valid claim for consideration. It is thought that around 13 million PPI products were sold in the UK, and in 2006, it is estimated some £4.4 billion was paid in premium.  Experts within the industry believe between 50% and 70% of all policies were mis sold. If you were sold PPI after January of 2005, then you may be eligible for compensation, purchases before that time are not.

Payment protection insurance and any new insurance products which may come onto the market will in future be closely monitored for compliance with new regulations, and to ensure they are fairly priced. Bankers and lenders will also have to ensure advisors involved in selling of insurance type products are adequately trained: in other words – they understand the product they are selling, how it works – recognise who is eligible, and who may not benefit from it.

If you think you have a valid case for reimbursement, you don’t necessarily have to go through a long and stressful procedure in order to get back what’s legally yours. As you might imagine, banks and other lenders don’t make claiming back PPI a particularly easy process… at Consumer Finance Claims we look to recover the full cost of your policy plus interest, if we believe that you have been mis-sold PPI. Even if the loan is still running we can look to reduce your ongoing payments as part of our negotiations.






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BulletpointsAverage claim value £2500

BulletpointsNo Win – No Fee* PPI Claims

BulletpointsNo Upfront Fee's

BulletpointsOn average our PPI claims take 12 weeks

BulletpointsCompetitive 20% inclusive of VAT Success Fee

BulletpointsProven track record* for all PPI claims


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Congratulations! You're one step closer to receiving your compensation for mis–sold Payment Protection Insurance.


If all details look OK you will receive a Claim Pack through the post, usually within 48 hours. If there are any issues we need to discuss one of our advisors will call you.


Either way you need to return your Pack as quickly as possible to prevent any delays with your claim!