Payment Protection Insurance or PPI was originally introduced to cover loans and mortgages in the event that the purchaser was unable to fulfill their financial obligations due to sickness, redundancy or accident.
Much of the payment protection insurance was sold indiscriminately or was Miss-sold to borrowers at least for the last decade, many of the banks and institutions
forced their customers to take out Payment protection policies in order to protect their own interests without regard for the customers ability to make a claim on
the policy.
PPI was sold alongside a loan or mortgage, called, single premiums, because of this the interest gets higher because of the added premium of the cover. PPI is
supposed to be independent of the loan or mortgage, meaning it can be obtained from an independent insurance provider often at a much lower cost.
It has never been compulsory to insure loans, however the banks and institutions often implied that the loan would be looked upon more favourably if it had a PPI or Payment Protection Insurance policy attached, very often the customer was not given a full description of the cover that was included and in many circumstances the were not told of the exclusions and, at times they did not even tell the borrowers that they have buried the Payment Protection Insurance cover within the loans they were asking for.
In most circumstances bank managers were targeted on the “Add On Products” as these created separate and extremely lucrative additional income streams to the banks and institutions which includes all or most of the high street lenders and many of the less recognized lenders. Furthermore most of the employees that sold these PPI Policies were in turn themselves targeted on the volume of “Bolt On” products that they had included. These individuals were often put on additional commission structures that would reflect the sales of these products.
The inclusion of PPI was often used as a bargaining chip suggesting that a speedy and sure approval of their loans was more likely. This kind of procedural selling of was not a true reflection of what was originally intended to be a really good and viable insurance cover, especially with the current economic situation.
This mis selling is considered generally as systematic abuse of the intended use of the product.
Now, if you think that you have purchased a miss-sold PPI, either on an existing loan or a loan that has already been paid off you can ask a professional company to present your case firstly to the lender and then to the Financial Services ombudsman if necessary this company will relentlessly pursue your claim to the end, They will even demand that the lender pays you back interest on your money. This company has a panel of solicitors that will represent you in a litigation case if it goes that far (which is quite rare, I might add).
They will take on your case on a conditional “No Win No Fee” bases so you really have nothing to lose by asking them to look at your claim.
In the event that they win damages from your claim which is more often than not, as it is widely accepted that up to 89% of all Payment Protection Policies Have Been Mis Sold one way or another.
If this post has made you wonder whether you have a valid claim for mis sold PPI you can visit www.writeoff-myloan.co.uk where you will be able to make a very easy and brief enquiry.
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