Reclaiming PPI – get on the bandwagon.
PPI or “Payment Protection Insurance” is a common insurance policy that the majority of lenders use when getting a new client to sign up to a loan or credit card. It is often the case that if a borrower requires funds the lender will require that borrowing clients purchase insurance in order to be approved for a mortgage, a loan, or in order to become a major credit card holder or other credit recipient.
Unfortunately, too many wishing to borrow are unaware of the legal aspects of purchasing a Policy. The fact that Lenders required a borrower to take a policy as a condition of taking a loan has stirred the wrath of the Office of Fair Trading. PPI policies were extremely expensive often adding thousands of pounds to the cost of taking a loan, of which about 90% was pure profit for the lender. The terms of the policy were often not explained either fully or at all to the borrower and it was only after a person came to claim that they discovered that the policy was totally unsuitable for them.
For instance a self employed person could never claim on then policy, but on many thousands of occasions this was never made known. The OFT have levied fines on a number if lenders totalling millions as a result of this blatant mis-selling and certain lenders have been very good in repaying claims for mis-sold policies. The lenders are now very much aware that their lending procedures are under scrutiny and so have changed their practices. Unfortunately millions of mis-sold policies still exist and have the potential to release £1000’s in interest and capital for those who hold them.
A whole raft of advisors have now got accreditation from the Ministry of Justice to be able to advise their clients on mis-selling of products such as PPI, and millions of borrowers have successfully won their claims against this mis-selling practice. If you believe you have been inappropriately lured by a lender into purchasing an unnecessary PPI policy, I would encourage you to file a claim today with an appropriate advisor. If you do not know an advisor you will find details of one at the end of this article. Most claims companies will not charge up front for the service they offer. They will simply take their costs from the amount they recover for you. As this is based upon a percentage of what they recover, they are incentivised to make the greatest return for you.
The usual cost is 30% of what is recovered and this is because it is conducted on a no win- no fee basis, with all the risk being taken by the advisor in terms of his time and resource. That advisor also has experience of running and winning many hundreds of claims and so knows how to work the system.