Financial institutions like banks sell Payment Protection Insurance (PPI), which is also known ascredit protection insurance or loan repayment insurance, along with credit cards, loans and other finance agreements as an insurance measure, if the borrower finds it hard to repay the loan due to a disability or accident leading to sickness or unemployment.
Originally, PPI was devised to safeguard a person from losing his good credit scores and prized possessions like property and cars, should he become unemployed or fall seriously sick. However, within a few years several banks and other financial organizations started seeing PPI guidelines sales as one more way to generate revenues.
Recording the PPI Claims
There are four main reasons why you may have to record PPI claims.
- You were not told that you were buying PPI
- You were not aware you had buying options
- Approval of credit was dependent on PPI purchase
- As a client, you did not satisfy the criteria for PPI policy
Being unaware with buying a PPI policy was regrettably quite a common thing. For several years, PPI was traded together with a normal package when purchasing devices, taking loans or other mortgages and/or attempting to obtain a credit card. This policy was covered within other areas of the acquisition contract and not described properly to the customers at all. Since several clients were not aware it was available and could not find it easily, they did not know how to ask for it to get it removed.
Myths About PPI
Fundamentally, customers were forced to believe that they would not be able to buy a huge kitchen appliance or car without PPI. The same method was applied when anyone tried to apply for a new loan or credit. If you are notified of this, you may claim PPI for such kind of payments.
Many clients were not informed that they had choices when buying PPI; to add purchasing it afterwards and to opt for other financial organizations to look for a great monthly rate. In case they inquire about it, many customers were informed that their insurance plan required to be purchased at the same time when they apply for credit cards or at the same place as their product. Banks specifically hired this misinformation to sell PPI at comparatively higher market rates.
Clients had to attain specific needs to be certified for PPI. If you are less than 18 years or more than 65 when you purchased the policy, you may register for PPI claims for the payments formed. This is particularly the fact if you were self-employed, unemployed or retired at the time of purchase. Pre-existing medical conditions that limit your working ability are also not qualifiers for buying PPI. You can file for PPI claims when you can confirm that the seller had understood your condition.
In case any of these conditions were existent when buying PPI, your next phase is to submit a claim. Now, in case you check your purchase contracts, credit card applications or sales receipts and if do not see PPI, examine once again. To mask the transaction from clients, sales offices and lending institutions came up with several ‘aliases’ for their products.
If you find these titles or any variation of these, you may be able to register a claim:
- Premium Protection Insurance
- Credit Care Insurance
- Loan Protection Insurance
- Mortgage Protection Insurance
- Income Protection Insurance
- Accident Sickness and Redundancy Insurance
Lastly, you must understand that the process is not an easy one; so, it is advisable to seek assistance of an experienced attorney who deals with PPI claims quite often.