Many Lenders Stand to Get PPI Compensation!

 By: Belmont
What is PPI?

It is paradoxical that many of the people who are made to opt for PPI or Payment Protection do not even know what it is. Known by other names like Loan Repayment Insurance, Redundancy Protection, Loan Protection Cover, Mortgage Payment Cover, and Credit Protection Insurance; this insurance is often sold to people when they take a loan. Banks and other lending institutions sell this coverage to borrowers so that they can continue with the minimum monthly payments if they happen to be unable to pay back the borrowed sum because of circumstances like unforeseen unemployment, accidents, and similar incidents. The insurance providers are supposed to the borrowers to keep up with minimum payments for a period of a year or so, within which debtors are expected to get another job or recover from the accident.

However, the fact of the matter is that many people have been made to purchase payment protection insurance in spite of the fact that they may not have needed it. Since it is fairly difficult to determine whether a borrower will end up defaulting or not, they are either convinced that they need it or simply not informed about it properly. This has been identified as an unfair trade practice by Financial Services Authority (F.S.A.).

Why do banks sell it?

There have been cases where potential borrowers have been lured with loans where the lending institutions stood to make little from the loans per se, but earned substantially from the commissions received from selling the coverage.

How does it harm you?

Many banks have mis-sold payment protection insurance to their debtors because these substantial increase the monthly payments. Studies by the Citizen's Advice Bureau have revealed that the payments can increase by up to 56% because of this! Essentially there is no point in buying this cover unless you feel that you really may not be able to keep up with the minimum payments for a temporary period of time.

However, debtors often are not explained why they need the coverage. In some situations, people are so desperate to get the loan that they end up complying with all the conditions laid before them by the lender even if the conditions are not mandatory.

What can you do if you have been unjustly sold a PPI?

In case you think that you have been sold a policy without being informed about why you may need it in the first place, you may make a payment protection claim because thousands of people have managed to get their money back by proving that they ended up seeking coverage because of factors like:

- They were not explained why you need the coverage
- They were made to understand that it was included in the loan
- They were not really told how much it would actually cost

At any rate if you think that you have been cheated, you can get in touch with agents who help people to successfully make protection insurance claims. It does not even matter if you have repaid your debt. In fact if you have borrowed money from mainstream lending institutions in the last ten years, you may be eligible to claim back PPI.
loading...
Author:
Artice Source: http://www.articlesphere.com

Related Articles in Insurance


People interested in the above article are also interested in the related articles listed below:

This article is titled "How Not to Purchase Laptop Insurance." What would it be advisable for you to NOT do? Try not to go uninsured. Try not to extend your mortgage holder's protection to cover your laptop. What would it be a good idea for you to totally do? Get safeguarded by Laptop Insurance. You'll be happy you did!
You're not just buying a car and a house that you'd like, but your version reflects a lot about yourself. Although some people believe that it's a lot more responsibility, you can still appear in the other direction. Here, motor homes and also your investment. Therefore, you should take into account its security at all times. As a responsible car owner and home, you should get a car and home policy to protect your investment. And when you seem to him much better to be sure that you get all the car insurance cover financial savings!
Time is not always ticking. Even when it comes to claiming compensation, there is an accepted time limit designed to prevent spurious claims. But there are some situations where even this does not apply. This article looks at some of the reasons why time is not necessarily of the essence when it comes to making an accident claim.
loading...

More in Insurance

Excellent, Larry. Thank you for taking the new article directory technology and making it work to the max. I encourage everyone to keep contributing and contributing regularly. I can attest to the fact that this site is already a strong directory in a field of many. Kudos to Larry!

Matthew C. Keegan
The Article Writer

 

I find it a delight to use both as an author and a publisher. It is full of nice little surprises that make the whole process of writing, reading and publishing articles a complete delight. This is one that comes out tops and beats the rest hands down.

Eric Garner
Managing Director
ManageTrainLearn

 

I did a Google search and came across your site. It was exactly what I was looking for and was elated to find such a broad range of articles. As I am launching a free magazine in a small town in Florida, I wanted to be as resourceful as possible while still being able to provide some content that is interesting and well written. Your site has all the variables in the mix. Excellent Site hitting all the notes in the scale sort of speak.

Mo Montana
Florida, USA

Article Topics

 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
ArabicBulgarianCatalanChinese (Simplified)Chinese (Traditional)CzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekHaitian CreoleHebrewHindiHungarianIndonesianItalianJapaneseKoreanLatvianLithuanianNorwegianPersianPolishPortugueseRomanianRussianSlovakSlovenianSpanishSwedishThaiTurkishUkranianVietnamese