Payment Protection Insurance (PPI) is a form of insurance that protects borrowers who find that at some stage, they are unable to make their due payments for loans or debts they need to cover. Events such as accident, unexpected illness, job loss, or similar other incidents are responsible for such a scenario. The insurance carries on the repayment for a fixed period of time under such circumstances.
Major financial transactions such as credit cards, loans, etc. involve such form of insurance. However, some cases have come to light where PPI is offered and sold to the customer in spite of no requirement. Such cases are known as mis-sold PPI.
Certain transactions by private dealers and financial organisations have been highlighted by the media, resulting in mis-sold PPI cases coming to light. The applicant is convinced by certain lenders that it is compulsorily to opt for PPI coverage on the loan to receive approval. This is completely false. In many cases, PPI coverage is not compulsory and it is possible to obtain loan schemes minus PPI.
Furthermore, it is not mandatory to get the PPI coverage from the lender himself. It is best to obtain PPI coverage from an independent broker to avoid such forms of mis-sold PPI.
As an example of mis-sold PPI, consider an offer that you get in a shopping mall that offers 10% discount on usage of store card. In our haste, we fail to read through the fine print that may indicate PPI charges payable on the card irrespective of its usage.
Barring mis-sold PPI, payment protection insurance, is indeed a scheme that gives the borrower significant peace of mind. Correctly chosen PPI schemes ensure that the applicant does not have to worry about loan re-payments in times of need. This further ensures that the applicant’s credit rating is not damaged and he or she does not face any legal complications due to non-compliance of loan repayments.
All benefits that can be availed from a given PPI coverage should be carefully checked out before choosing any particular scheme. In most cases, borrowers do purchase PPI coverage so that their debts can be safeguarded.
For a victim of mis-sold PPI, it is actually possible to reclaim the PPI amount. Try to claim the refund directly from the lender or bank authority that you have dealt with as a first step. If you meet with a refusal, contacting the banking ombudsman is the next step. An applicant always can fall back to consumer forums and other state regulated unions that protect the rights of borrowers.
Sally Bowyer, Managing Director of Brunel Franklin, said: “We are pleased to have been able to help thousands of clients and get the maximum PPI refund they are entitled to; many PPI cases we see illustrate just how careful you need to be when taking out loans and credit agreements, particularly over the phone. It is easy to rush things over the phone and all too easy for the vendor not to make clear the all important detail of the policy. It really does pay to check the small print.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51.