Make Sure To Collect Your PPI Claim

Posted by admin on May 18, 2011 under legal | Comments are off for this article

Ask yourself this question: when you took out your last loan, did it include a PPI claim? Payment protection insurance is one of the many ways that lenders make extra money off of unwary consumers by adding in additional fees and unnecessary services, a practice that ran rampant until only a few years ago when investigations from several government bodies (such as the Financial Services Authority) cut down the practice and imposed numerous fines on shady banks involved in such bad deals. However there are still approximately 20 million PPI policies in the UK, of which only 2 million ever actually receive benefits. As a result PPI policies have grown to be much more profitable than the actual loans themselves, wherein the lending company only receives an 85% profit on their investment.

The key to the issue is knowledge. It is extremely important for you to know if you are currently holding onto a PPI policy as part of your personal loans, mortgage, car loan, credit card, or any other line of credit. Even home insurance policies often have a PPI attached, especially older policies. It would be useful to know if you have the ability to file a PPI claim if your financial situation changes for the worse, or to reclaim the money you spent on premiums if you don’t feel you need the program. Despite what many lenders will say, payment protection is an option program, not compulsory. Always remember that, and remember that you have the right to get that money back if you were sold the policy under suspicious terms.

If you do possess a PPI policy do some research on the internet to learn what traits qualify a PPI policy to be reclaimed. There is a significant chance that you can pay off a great deal of your debt simply by recovering this money (as well as the interest you were charged for it, or the interest it earned while being “loaned” to your lender). Pressing your case may be one of the best moves you will make in a long, long time.