Home
Payment protection insurance is something people tend to know remarkably little about, yet it is one of the commonest forms of insurance in the world today. It is that insurance you take out when you secure a loan, the policy that is designed to cover you should you suddenly find you can no longer work, the one that gives you peace of mind that your monthly repayments will be met.
In recent years there has been much talk of mis-sold PPI and the industry has undergone many quite drastic changes – so what is it all about?
The problems began with a number of complaints early in the 21sst century in which customers raised concerns that their insurance providers had not been entirely honest, or fair, in their dealings. These complaints led to an investigation by the Financial Services Authority, with the result that the industry was found to be frequently in breach of its own regulations. Fines were handed down – some to major well known brands – and the rules rewritten as a result.
This led to many people who had previously been unaware of the situation discovering that they had been victim of malpractice – the most common form of which occurred when the lender insisted the borrower take out a PPI policy as part of a package deal, a practice that resulted in a very expensive deal and one that has now been outlawed – and being advised to pursue PPI claims in the courts.
Due to the findings of the FSA these claims have largely been successful, and the number of people making them has been rising ever since.
PPI is such a common form of insurance – and there are so many variants on the theme – that there will be many people out there who do not know that they could make a PPI reclaim, as the complexity of the insurance and loans world is baffling to many. The basic rule of thumb is this, however – if you have taken out a loan in the past ten years or so – maybe more – or if you have entered into a credit agreement, including a mortgage, in that time you need to investigate the circumstances of the agreement and find out whether you are in line for compensation.
There are many individuals with experience in the field who can help you, and there is much information on the internet that will guide you in the right direction, and you need to follow the correct path in order to make a successful PPI claim so it is best to enlist the services of a professional. You may find that you are entitled to claim back a quite considerable amount of money.