For several years now there have been numerous reports on the situation surrounding PPI (payment protection insurance) offered by many lenders as an additional charge based on your credit card or loan agreement. Although there is nothing wrong with the idea behind PPI itself, problems have arisen due to the way in which financial organisations have provided this service. Here we take a look at what’s PPI is, the potential problems with it, and whether you can reclaim your payments.
What is PPI meant to be for?
The idea behind PPI is simple; if you have a credit card, loan, or other credit agreement with a bank or other financial service provider, by choosing to pay an additional premium each month your payments could be postponed or even made for you in the event that you are unable to make them yourself at some point in the future. The purpose of this is to help you deal with unfortunate circumstances such as unemployment or ill-health which affect your financial security.
What has gone wrong?
There are two main problems which have arisen regarding PPI. The first problem is that it was found that many financial institutions were mis-selling PPI services to their customers. Generally speaking, this means that a bank, for example, may have sold PPI to a customer who either didn’t want it, or was not eligible for the product in the first place.
The second problem was to do with people trying to make a claim on their payment protection insurance in the event of unemployment or ill-health. Both the Citizens Advice Bureau and the Financial Services Authority found that an extraordinarily high number of customers were being refused access to this insurance, based on various unfair terms and conditions and general unwillingness of financial institutions to pay up.
Am I able to reclaim my PPI payments?
First of all, you will need to establish whether or not you have PPI insurance on any of your credit agreements. You will need to contact your bank, building society or loan provider etc to ask them if this is the case. Some people do not even realise that they have PPI attached to one or more of their credit agreements. If the PPI was added without your consent, this in itself will likely be cause for compensation to be claimed.
Many lending institutions have already put aside billions of pounds in order to deal with the vast numbers of payment protection insurance claims being made. Many of these institutions have also been fined for their actions and have finally accepted that they are liable to their customers for the way in which they have provided PPI.
Help is available
If you believe you may have been mis-sold PPI, or refused use of your insurance cover in the past, contact us today to find out if we can help you make a claim. You may be able to claim back all of the premiums paid for this product, as well as compensation which in some cases can positively affect any existing liability for personal debt you have with lenders.