UK Finance Blog

Archive for the ‘PPI Claim’ Category

In UK, there have been a lot of controversial issues with payment protection insurance (PPI) in the recent past, but still there are many people who are unaware of such unfair practices followed by the lenders. Many a times such complaints even go unnoticed. However, the regulatory authorities are now taking it as their responsibility to keep a check on all such lenders who have been practicing the unjust means of charging extra money by their customers through PPI mis-selling. A strict action must be taken against such particular lenders.

Recently, I have also been a victim of such a fraud and may be this the reason I an writing this blog. I would like to enumerate all those points which connotes that you have been duped. They all are mentioned in the below passage.

When the applicants of loan are sold the insurance product without their knowledge of the same. It happened with me too. I was paying off extra amount compared to which I was liable to on the monthly installments. Also, if the lenders do not explain the full terms and conditions to the borrowers at the time of selling the insurance product, it is considered as a case of PPI mis-selling.

Later I discovered the reason for it was an additional amount I was asked to pay apart from the original installment of loan. It is surely important for a borrower to be extra cautious and keep a track about where is your hard earned money going. So I admit my mistake of not being careful at the time of signing the documents but the lenders do it intentionally.

Thus, every individual must understand the ways adopted by the lenders to fool them and hence  they all must be informed of the rights to claim their money from the lenders who have charged them with extra amount by way of  PPI mis-selling.

Here, in this blog I would like to explain you all the meaning of PPI (Payment Protection Insurance). What does it mean and how does it actually work?

In simpler terms, PPI can be defined as an insurance product through which a person is provided a cover for all the existing debts. There are various financial institutions who sell it as an additional service to a person taking up a loan. Payment protection insurance plan covers a person against a major accident, unemployment or any event which in turn causes in source of earnings for them.

Certain situations make the person unable to pay off the expenses in the absence of any permanent source of income. The entire concept behind this plan is great, but only if all the terms and conditions are followed by the lending institutions. In the recent past, there have been a number of cases where a mis selling of PPI has come to face and which further leads to the inconvenience for the borrowers as they are declared as not eligible for their PPI compensation claim. I had a similar experience in the recent past.

For me, it was the true case of mis selling of  PPI, which of course I realized later on. It started when I approached to a lender for a loan. Along with the loan, they insisted me to purchase a payment protection insurance which is an add-on service provided by them. They mis guided me by stating it’s advantages alone. The terms were not made clear to me before selling the product.

This is where everything went wrong. The consequence of a deliberate mistake on the part of the lender, resulted in the rejection of my PPI compensation claim. I discovered that I was not the only target. In fact this practice has been followed at large with an aim to cheat the borrowers who seek a help from the UK financial market.

So, if you do not fall as a victim of a case of miss sold ppi, then make sure you read all the terms and conditions, even mentioned in that smaller print

I don’t understand why banks are compelling people to buy payment protection insurance unnecessarily. Anyways, as I see it, I find that the bank staff are under tremendous pressure to sell insurance policies to the people, no matter what. Since they are pressurized from their respective bosses, they are just doing their duties.

As customers usually stay confused, they are being unnecessarily exploited by the bank staff. As far as PPI is concerned, there is no problem if there is a genuine need. However, one of the perennial problems that has cropped up pertains to less cover offered with the insurance cover. This is what has been told by the independent financial advisors.

What’s more, even the advisors are not seeming to be happy with the decision. They are vociferously up against the decision of the banks to provide PPI cover. Now that is something, which has been at the center of the problem.

To my utter surprise even UK’s biggest banks are involved in the menace. They are the ones that are routinely involved in pushing inappropriate and costly life insurance on to the general masses. In the wake of this many people have been feeling as if cheated and want their claims back.

What constitutes the major problem is the fact that bank staff are trying to compel their customers to switch to other policies from Payment Protection Insurance without even fully explaining the consequences.

PPI To Terminal Illness

Some of the mortgage brokers have been constantly reporting that there are cases where banks are involved in forcing their staff to achieve PPI sales. As a result, people have been grossly cheated on this account. What has been so confusing is that in some cases people even don’t know that they carry a policy with them.

Instead what they are doing is that they are pushing the people to opt for some other policies such as terminal illness cover. Even this is also burdensome.

Personal Advice

I have been urging people to constantly review their insurance cover from time to time. It becomes highly necessary specially in the wake of changed scenario where more and more people are getting victimized in the wake of PPI.

It is unfortunate but a protector has turned a tyrant especially when we take into account the payment protection insurance issue into account.