De-Pressurising Payment Protection Insurance

QUESTION: How many people do you know who have at some point contacted a financial institution so they can apply for a loan or a mortgage or another type of finance?

ANSWER: Probably almost all of the people you know.

But how many of them also WANTED to apply for PPI, or payment protection insurance? The answer to this question is almost certainly next to none of them.

Yet, how many of them will have ended up with PPI? Yep, you’ve guessed it, most of them.

Why Do People End Up With PPI Cover?

Quite simply, because the banks and other financial institutions want them to, because it is profitable. They structure the sales process (or in some cases, used to) so that the “Financial Adviser” is paid more if they have sold the PPI to the customer.

Variations on this may include the sales person, sorry, erm, “Financial Adviser”, having to hit a target of sales before receiving any commissions, which could form a substantial part of his or her income. Weekly targets put the employee under constant pressure to keep selling what are, or were, effectively unwanted financial products to customers, or at the very least, mainly mis-sold financial products. This type of practice has been known to go so far that it was not uncommon even for bank counter staff to ask customers if they were interested in opening more accounts, or to apply for credit cards, or to take out PPI and a host of other very profitable (for the lender) financial products. Many employees who have had to do this found it somewhat demotivating, especially when they did not in the first instance apply for a job that involved selling. Incidentally, could this have had an effect on the current banking crisis where many of the people who work in and also run Britain’s banks do not now have a banking qualification – would you want to train as a banker just so you could sell?

What Benefit Do People Get Who Have Ended Up With PPI?

Another good question. How many people who take out PPI actually go through the process of making a claim i.e. if they ever experience loss of earnings and are then unable to meet the loan repayments? Probably about the same number as those who wanted to take PPI out in the first place, i.e. not very many.

How many of the people who do make a claim, actually manage to make a SUCCESSFUL CLAIM? Well, let’s just say that the numbers do not reflect favourably on the financial services industry.

So How Do People End Up With PPI Cover?

There are many techniques that were used to encourage borrowers to unwittingly inflict even greater financial hardship upon themselves. These were in many cases unfair and form the basis for claiming back your PPI payments, and possibly also the commission paid to the salesperson, from the lender. In short they were mis-sold.

How Do I Know If I Can Claim Back PPI Payments?

You can download a FREE checklist from ppi-ppi.co.uk to see if you are eligible to reclaim your premiums, which the majority of PPI policyholders are. Some of the more common failings include: you were not employed by another person or organization at the time, being pressured into the PPI, having to take out the PPI at the same time as the loan; being told the PPI increased your chances of getting the loan, not being given a choice to look elsewhere for PPI cover; being told it was compulsory; paying upfront; increasing your loan and PPI was raised too.

Mortgage Claims PPI

Have you taken out PPI on a Mortgage,  Car Loans, Home improvement loans, Secured Loans and even personal Loans. It doesn’t matter if the loan is current or previously redeemed.

If you have already tried to claim and been refused by your lender it doesn’t matter. You will be taken much more seriously if you use a professional service.

It doesn’t matter if you win or lose (which is unlikely). You pay no fees to make a claim. Research now shows that up to 90% of policies sold in the UK are useless. Many people when trying to claim on their PPI are told that they are not eligible to make a claim on these policies.

It is estimated that over 20 million people in the UK have been mis-sold a payment protection policy, some might not know they even have one. Recent changes in the consumer credit act has forced companies to issue at the very least, annual financial statements. If you have never recei ved a financial statement from your lender then chances are you have no idea how much you actually owe.

The sale of Single Premium Payment Protection Policies, insurance to your loan in one lump sum, has recently been BANNED at the point of taking out the loan. If you have one of these policies then chances are it was mis -sold and you are paying for something in which you will never likely be able to make a claim on.

Mis-selling checklist

1. Were you told the policy was compulsory?
2. You were told the insurance was essential for you to get the loan
3. Where you asked if you had another policy or insurance in place that would cover you?
4. The terms & conditions of the loan insurance policy were not fully explained to you.
5. You felt under pressure to take out the loan insurance
6. Where you informed that alternative and cheaper insurance products were available to you?
7. Did the adviser tell you about any significant exclusions under the policy – for example, the exclusion that says you won’t be covered for any pre-existing medical condition?
8. If you took out a loan or finance agreement, did the adviser make it clear that you would have to pay for the insurance up front in one single payment?
9. If you had to pay for the PPI as a single payment, did the adviser make it clear that the insurance cost would be added to the loan and you would be paying interest on it?
10. Single premium PPI insurance normally lasts for 5 years. If your loan or finance agreement was for longer than this, did the adviser make it clear that the insurance would run out before you had finished paying for your loan or finance agreement? The adviser should also have told you that you would continue to pay interest on the insurance premium, even after the insurance expired.
11. You were under 18 or over 65
12. You worked less than 16 hours a week
13. You were employed on a temporary or contract basis or were aware you may become unemployed
14. You suffered from stress, backache or had a pre-existing illness or injury
15. You were not told about the true cost of the insurance, (or not told you were buying it at all).
16. You were not asked about any other insurances you had
17. You were not told that the same policy could potentially be bought elsewhere cheaper.
18. You paid for loan insurance upfront and it was not refunded to you when you paid back your loan early.

If any of the above apply to you why not claim back your ppi premiums now? You could receive thousands of pounds back.

If you still need PPI you can shop around and buy it cheaper elsewhere ……………..and read the small print and exclusions first!

DE-PRESSURISING PAYMENT PROTECTION

Rip Off Payment Protection Insurance- Can YOU Claim?

Payment Protection Insurance

It is easy to claim back mis-sold PPI. Very few people have been able to claim on this insurance and Lenders have been fined MILLIONS in the high court for selling it to people who DID NOT need it or whom they knew would be NEVER be able to claim on it as they were self -employed, about to retire, or already had pre-exting medical conditions which meant they could never claim anyway!

It is a NATIONAL SCANDAL! And you can claim it all back! FREE.

The Competition Commission has released a damming report following its investigation into the Payment Protection Insurance (PPI) market.

The Competition Commission said in its summary; we provisionally found that each credit provider and financial intermediary faces little competition for the sale of Payment Protection Insurance (PPI) when it is sold in combination with the credit it insures. As a result of this lack of competition, it is highly profitable to distribute PPI. We estimated that the 12 largest distributors of PPI made profits in excess of the cost of £1.4 billion in 2006. We found that there were features of relevant markets which resulted in consumers facing higher prices and less choice. Not only was the matter of competition a factor in this investigation but the Citizens Advice Bureau issued a super-complaint which highlighted not only consumers paying excessively high prices for PPI but that consumers were also often mis-sold PPI by companies using pressure and unfair sales tactics.

Claim Back Mis-sold PPI.

Mis-sold PPI.

The mis-selling of payment protection insurance has been called one of the worst financial mis-selling scandals of all time.

The premium for a loan is usually added to the loan meaning that the customer also paid interest on the insurance policy! Great news for the lenders. Bad news for the consumer.

Banks and other lenders made vast sums of money from the sale of PPI Policies and charge extortionate rates for the insurance which rarely pays out because of the restrictions and exclusions that were designed to stop people being able to claim.

There are many ways in which each PPI policy may qualify as a mis-sold policy. Typically lenders saying, untruthfully, that the PPI was needed to qualify for the loan, or not giving borrowers the chance to look elsewhere for PPI. Other failings on the part of the lender may have included selling a single premium policy that is paid up-front, or selling a policy to someone who is outside the eligible age range to benefit from the policy. Perhaps most extreme for mis-selling a policy designed to cover people for loss of earnings from employment, was to sell to people who were unemployed or self-employed, rendering the policy meaningless.

The premium on credit cards is usually added to the monthly repayment figure and this can run into thousands if you have had the card a long time and keep a high balance. The premium is usually a percentage of the balance. For example £1.00 per £100. You might think “Well, that’s only 1%”, but if you have a balance of £1000 you will be paying £10.00 per £1000. If you have a £10 000 balance that amounts to £100 on top of the normal payments.

Mis-selling scandal

Many people do not even realise they have PPI. Many more have no idea how much it has really cost them as it is often very unclear. Furthermore, lenders made it difficult to cancel when people do realise just how much the PPI has cost them.

It is up to the seller to make sure you have been fully informed of all of the restrictions. Another is if you have a pre-existing illness then you will not be able to claim.

There are over 10 reasons why PPI policy might have been mis-sold, so if you are like the rest of the UK population there is a very high chance you will be eligible for a reclaim.

The good news is that you can claim it all back with interest and the commission paid to the lender who sold it.

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