Unscrupulous bankers and lenders may finally have to stop their high pressured tactics and lies in regards to the sale of PPIrat. Even with all the bad publicity and rules that have been added, the truth about payment protection insurance and the scam that has been perpetrated amongst hundreds of thousands of unsuspecting borrowers is still ongoing.
Recently a new rule has been put into place by the Competition Commission which states that lenders cannot sell PPI to borrowers for the minimum of seven days after which the loan has been approved. This practice naturally has the banks in an uproar. Many banking institutions will hold the loan hostage and create a facade that the loan cannot be granted without the purchase of the payment protection insurance premium.
Approximately six years or so ago, was when the PPI misuse came to light. Since that time numerous financial institutions have paid steep fines for the mis-selling of these premiums. They have also had to reimburse millions of dollars to claimants who proved their cases were legitimate.
The banks and or brokers whom have been doing this mis-selling have their own reasons for doing this sort of activity. The banks not only can charge you whatever they like for these premiums (they are nearly always 2x as much as if you found it at an independent office), but then they tack it on to your loan and you pay the finance charges on this as well as your loan. Independent brokers on the other hand will earn 50% commissions on each sale they make.
If you feel that you were mis sold payment protection insurance you have the opportunity to reclaim your premium and the financial institutes may have to tack on Statutory Interest at 8% per annum, and in all actuality more could be awarded. Even if your loan or credit card has been paid off, as long as you can gather the correct documents, and information, you will be able to file a claim.
In closing, please find a brief run down on the main instances on how people were mis sold payment protection insurance; you were told that in order to get a loan it was mandatory you purchased PPI, you were not told the exclusions of the policy, you were sold PPI even though you were self-employed, you were not employed at your current job for more than 12 months, you were not asked of any prior medical conditions and you were not told the price of the premium. Invest the time into finding out if and how you can claim your money back, it will be worth it.