Posts Tagged ‘claims’
Consumers should feel secure that their Payment Protection Insurance will cover their debt repayments if something unexpected happens they are covered for, but more and more people are feeling like it is one big con. It has been sold to people who are uninformed borrowers who can’t afford it and even people who want it but don’t know they are ineligible.
Most banks cunningly tag on PPI to any loan or credit and bank employees are often forced to sell useless policies in order to keep their jobs. The theory of PPI is great for borrowers, particularly in the recent economic hard times, where people are losing their jobs left right and centre, it should mean that 3 months unemployed doesn’t mean going hungry because of mortgage repayments. But the reality is quite the opposite; there have been almost no cases where PPI has actually helped someone struggling to make repayments.
Fortunately justice can be served and banks and lenders who have mis-sold PPI can be held responsible by the everyday consumer. There is a variety of companies who are able to help with financial lawsuits and many companies who specialise in reclaiming PPI payments.
The majority of consumers don’t fully understand the variety of situations in which being sold PPI is illegal, for example; if you were unemployed, self-employed or simply over 65, your PPI payments were invalid and you can recover all the money. If you were not explained the terms of payment, interest and cancellation and if you were informed you could only purchase PPI from your lender, ask for it back!
It is your own responsibility to reclaim PPI payments but now the Financial Services Authority and the Competition Commission have cracked down on the industry’s dodgy tactics. They will now fine any organisation who has broken rules on PPI selling.
In 2009 a watchdog ruled that companies are now required to accurately sell PPI to customers ensuring they are not overpriced, customers can chose to opt out at any time and they are completely covered.
If you think you have been miss sold PPI, then see if Dons LLP can help you with your PPI claim.
Many victims of Payment Protection Insurance (PPI) mis-selling will get a temporary extension to the time they have to complain to the Financial Ombudsman Service, if rejected by their lender according to reports from the financial Services Authority (FSA).
The Financial Services Authority (FSA) has today said those who have made a recent complaint about PPI mis-selling have got five months longer than usual to do it.
The time limit to refer cases to the FOS is usually a six month period, however this has now been suspended until the 27th October 2010, but only for complaints that have been lodged and have received a final response from their PPI provider between the dates of 28th November 2009 and 28th April 2010 inclusive.
A long term solution to make sure that customers are treated fairly and constantly when complaining about the sale of PPI products is under review. The action has been put in place as a measure to make certain complainants made about the sale of PPI policies are not disadvantaged.
In the latest annual report the Financial Ombudsman Service ( FOS) revealed that PPI related complaints amounted to around 30% of all new financial related complaint cases in the year to the end of March 2010.
PPI has been at the centre of controversy for some time, and there have been investigations carried out showing that many people were mis-sold these policies. The financial watchdog has dealt with over 49,000 complaints with the vast majority of these complaints belonging to the sale of PPI products; this is compared to a figure of 31,066 complaints in the previous twelve month period.
On average, it is thought that PPI related complaints amount to around 135 each day. However many of these complaints are being automatically rejected by the insurance providers out of hand upon receipt. The FOS on the other hand, upholds around 90% of the claims and PPI related complaints they receive.
To Claim Payment Protection Insurance ask the experts to help. Contact Donns LLP to help Claim PPI back.
Over the last few years the financial world has suffered some heavy losses due to the economic downturn. And at the point where banks and other financial institutions thought they had hit rock bottom, the majority of the UK population that had been misold Payment Protection Insurance (PPI) began to realise that they could claim their cash back.
Payment protection is insurance designed to cover the cost of any loan you may have taken out in the event you cannot make the repayments, due to illness or injury. The idea in itself is a good one, as if you fall ill and cannot work then for example you are safe in the knowledge your mortgage would be paid by the PPI you have.
The problem with PPI is that the majority of people ‘sold’ PPI where never actually told they were being sold it. And if they were told, they were miss-lead into thinking it was something different. So, thousands of the UK population where forking out money for an insurance package that they either did not need, they did not want or ask for, or an insurance package that was of no use to them and would never pay out in the event of a claim.
So what was the point in PPI you might ask? The answer is pure profiteering by financial institutions, to the tune of 4 billion pounds annually, all based on false information provided to the customer.
Recently the Competition Commission has stated that it will no longer allow the sale of PPI products alongside the sale of other financial products such as loans, credit cards and mortgages. And on top of that millions of PPI customers are claiming back money they have unnecessarily paid out, to the tune of 177 million in the first 11 months of 2009.
This decision that the Competition Commission has made now means that financial institutions will no longer be able to sell PPI insurance products to their customers when selling a loan or other product.
There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice
PPI claims have cost the payment protection insurance industry millions of pounds over recent years. But why are people reclaiming the money they have spent on such policies in the first place?
Let’s start by examining the product itself. Payment Protection Insurance, as its name might suggest, is designed to protect those who take it out. It is essentially a type of insurance for consumers taking out mortgages, credit cards, hire purchase agreements, loans and other financial products. The concept of PPI is that the consumer is protected if circumstances that are not their fault, (such as a cut in income caused by redundancy or illness) mean they find themselves unable to meet their monthly repayments. This, surely, sounds like a wonderful concept? And in theory, it really is.
The controversy surrounding Payment Protection Insurance isn’t the actual product, rather the way that lenders and providers have been selling it. It has recently come to light that a large number of people have been sold policies after being led to believe that applying for one would increase their chances of acceptance in their applications for loans or credit cards. There are other scenarios in which consumers were led to believe that PPI was compulsory.
This is just two of the many examples of PPI mis-selling. Others include people being sold policies on which they would never actually be able to claim on, for example those who were unemployed, self-employed or retired at the time of taking out their policy. There are cases of people not being given time to read the terms or others only finding out they even had PPI months later! The list goes on.
Any company which sells or brokers any form of financial product or service to a consumer has a responsibility to make sure that the said consumer is completely aware of the terms. In the cases that have emerged in recent years, the lenders and brokers have failed and this is why there are now so many PPI claims taking place.
Read more about PPI Claims and find out if you could claim today!
If you have a credit agreement in place and where not made aware by the advisor of the following terms when you took out your payment protection insurance then there is the distinct possibility that the PPI you have could have been misold to you:
From 2005 onwards the sale of Payment Protection Insurance (PPI) has been regulated by the Financial Services Authority (FSA). The FSA created a set of rules that are very clear and dictate what firms and advisers selling payment protection should do and say at the time of sale. Misold or miselling a police can occur if the advisor fails to adhere to these rules.
Your advisor should have made you aware of the following information:
If the policy expires before you finish paying for the loan or finance agreement, then the advisor should make you aware that this was the case.
The advisor should make the costs of the agreement clear, and whether the PPI would then be paid by one single payment, or by regular installments.
The advisor should make the costs of the agreement clear, and whether the PPI would then be paid by one single payment, or by regular installments.
If the policy was a single premium policy, then the advisor should have made you aware that the cost of the policy would then be added to the loan or finance agreement and that interest would then be applicable on the policy.
If the policy was a single premium policy, then the advisor should have made you aware that the cost of the policy would then be added to the loan or finance agreement and that interest would then be applicable on the policy.
You will also need to know the exclusion and exemptions associated with the agreement so that you are in a position to fully understand what you are agreeing to. If at any point the advisor has failed to mention any of these points than you have a case of mis-selling a policy.
The FSA set out their rules so that they are they clear and concise. The FSA state that you must be given enough information to allow you to make an informed decision at the time you sign up and agree to your PPI. You will need to be armed with this information so that you can fully understand and calculate the costs of the PPI including interest rates and rates of repayments.
There are many experts out there to help you Reclaim PPI contact Donns LLP to Claimback PPI.
