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What Are Payment Protection Insurance Claims

by PaulMyers

If you have taken out a mortgage, personal loan or credit it is almost certain that you were sold payment protection insurance from your lender. PPI ideally covers your ability to repay your debt should you find yourself in difficult circumstances such as injured or unemployed, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold. If you have paid for PPI you may be entitled to claim this money back. What you may not be aware of is why you could be eligible to claim and why the banks could face a huge wave of payouts

You might be familiar with the concept of PPI if you have ever negotiated some kind of loan or credit arrangement; a mortgage or financing loan, for instance. Good PPI offers peace of mind in much the same way as any other insurance, by covering you in the event of unforeseen problems. In the case of loans or financing arrangements, this means that if something out of your control prevents you from meeting, say, your monthly mortgage repayments, then your PPI policy steps in and pays them for you for a set period, usually for up to 12 months.

Or at least, it should do. However, what has happened in recent years is that many people have unfortunately ended up paying for PPI insurance that is essentially useless, due to the fact that they fall into a category that excludes them from being covered by the insurance. For example, PPI covers people in the event that they fall ill, preventing them from working, which in turn prevents them from meeting their loan repayments. However, if, when you arranged the PPI, you already had a pre-existing medical condition, then your policy almost certainly won't pay out when your health deteriorates and you are forced to leave your job.

Banks and lenders have offered products with full knowledge of the situation, something which financial watchdogs have frowned upon very much. Many of the UKs high street lenders have been forced to offer refunds to their customers but many have adopted a 'don't ask - don't get' policy that means the consumer has to go on the hunt for their money either alone or with legal assistance.

The point is that many people who fell into these categories-pre-existing medical condition, unemployed, or self-employed-at the time that they arranged their PPI, were not informed that these things would actually disqualify them from ever claiming on the policy, and that, as such, they were purchasing worthless insurance. Usually this happened because the salesperson did not ask sufficient questions to ensure that the insurance was tailored to the customer's needs.

Payment protection insurance claims aim to recover the money spent by customers on their policies when brought by reputable claims lawyers. Although regulations are now being put in place to make sure that companies offering PPI alongside loans improve their practice, there are still, of course, many customers who have already spent large sums of money on mis-sold PPI. Should they decide to, nearly all of these people are probably in a position to go to claims lawyers with genuine payment protection insurance claims and have a good prospect of success.

About the Author: Frank Cole

If you are looking to claim PPI insurance back you will require the services of a dedicated solicitor. Visit Donns PPI claims. Donns can help recalim PPI.

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What Are Payment Protection Insurance Claims