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Exactly what does PPI stand for as well as exactly what is it?

PPI stands for ‘Payment Protection Insurance’; it was developed as a premium insurance policy that can assist a borrower pay back specific financial loans (such as credit cards, home loans along with other financial loans) in the event of loss of work because of illness, injury or unemployment; the idea in itself seems like it would be ideal for most people in these volatile financial and employment times. However, a lot of companies mis-sold this to clients under a false premise.

What does mis sold payment protection insurance mean?

This is the expression that was given when loan companies (mainly banks) did not keep to the guidelines when selling PPI to possible borrowers. Numerous consumers have been forced into acquiring these overly priced policies by being told they were required in order to get their loan. Additional problems were individuals whom bought the insurance coverage were not told of limitations and they also weren’t told of the price which would be added. Usually, the actual policy premiums would end up being overly priced, after which added to the actual loan. What this means is the banks will be making much more money, as you would be having to pay interest on the PPI as well as the loan.

It has been estimated that more than two million customers were mis sold payment protection insurance. Even worse more recent studies indicate that of customers that filed to reclaim premiums, they are automatically declined. Many uninformed borrowers do not realize they have further recourse in their PPI claims. This benefits the banking institutions because they do not have to refund the money with regard to customers whom do not pursue the matter with the FOB.

What else could you do if you were mis sold payment protection insurance?

The most important step will be to first be sure you have a valid claim. Once you have verified this, gather all necessary documents, and begin the filing process with the bank or lender. Expect to have your preliminary request refused. Once you get the letter denying your claim, you have the option of contacting a firm that are experts in reclaiming money or else you can forward your request to Financial Ombudsman Service.

How far back can I go to file a claim?

If you have been mis sold payment protection insurance in the last 6 years, it is possible to file a claim. Anything more than that may be difficult, as it could be hard to get the needed agreements and to also remember every detail of what you were told. If you are uncertain you can make contact with a specialist to find out more.

If you believe you fell victim to mis sold payment protection insurance and want more information and tips on ppi claims please visit Simplicity Claims – specialists in reclaiming PPI Premiums.