Payment protection insurance – have you heard of it? If you haven’t then you may have heard it called by other names such as loan protection, debt protection, and many others. It doesn’t matter what the lender calls it, it amounts to the same thing. There has been an amazing amount of negative hype surrounding this type of insurance, and if you have been paying attention to the financial news then you will know exactly why. Payment protection insurance is wrongly sold to millions of people. When this happens, the victim has every right to claim back the premiums that they have paid into the policy, sometimes with interest on top. Figuring out whether you are a victim is the problem. First of all, let’s examine what this type of insurance does.
Basically, this insurance policy was brought about to protect people who have taken out a loan or those who use credit cards. As you know, if you have either of these things then you are obligated to pay back a certain amount each month. If you do not make these payments then interest is added on top, meaning that you sink further into debt. Obviously, the only way that you are going to be able to make these payments is if you are in full time employment. If you were to fall ill or have an accident that meant that you were no longer able to work then you would definitely struggle to make these payments.
If you had payment protection insurance then you would be covered if either of these things happened to you. You would be able to make a claim on your policy and it would then pay out a set amount of money towards your repayments so that you do not end up further into debt. Whilst this may sound like a good thing, you have to remember the fact that millions of these policies are wrongly sold to people all over the United Kingdom. For those who fall victim to this, it can be a very stressful time. So, you need to find out if you have been wrongly sold PPI, because if you have then it is your turn to claim compensation.
Unfortunately, the mis-selling of payment protection insurance is one of the biggest financial issues facing this country in the 21st century. The difficult thing is trying to find out if you have been a victim. Let’s take a look at some of the classic examples of how this happens. First of all, were you retired, unemployed or self-employed when you took out payment protection insurance? If you were and you were not informed that this would exclude you from being able to claim then you have been wrongly sold PPI. This is when you should start the claims process.
Something else that happens a lot of the time is people being sold payment protection and not even knowing about it. They only find out about it much further down the line when they look into their loan only to find out that they have been paying PPI premiums all along. Again, if this has happened to you then you should look into making a claim because you have been wrongly sold payment protection insurance. Once you have established that this has happened to you then it is important that you begin the claims process. There are two different options here.
First of all, you can think about taking on the claim yourself. You should remember that the lender will probably completely brush off your claim, but you need to be persistent. Go through the company’s complaints process first. If they ignore your claim and tell you that your application for compensation has been rejected then you can contact the Financial Ombudsman Service. This independent organisation is there to settle disputes between financial organizations and their customers, so this is definitely the next step. This is one option that you can look into. If you do not think that you have enough time, or the confidence to handle the claim yourself then you can think about using a claims company.
These companies actually act on your behalf when it comes to settling the dispute and getting you compensation for your wrongly sold payment protection insurance. These companies would be the way to go if you are worried that you will not be able to handle it yourself. They are run by professionals who have years of experience under their belts. Of course, this does not mean that you are more likely to be successful; it just means that you do not have to worry about handling everything on your own. As long as you get the money that you are owed, it really doesn’t matter which route you take.