PPI is Payment Protection Insurance and this insurance has been mis-sold in the UK on credit cards and loans. Over the past 10 years, PPI has been automatically attached to credit cards an loans without the card holder’s or loan recipient’s knowledge.
Credit Card PPI Claims
What is PPI? Payment Protection Insurance is insurance on a loan or credit card that ensures repayment if you are unable to work and make the payments on the card or loan.
A PPI policy covers payments if:
* The card holder or loan recipient becomes unemployed
* The card holder or loan recipient is involved in an accident and cannot work
* The card holder or loan recipient suffers an illness that renders them unable to work
PPI is offered on high value loans, such as mortgages and auto loans.
However, PPI may also be offered for smaller value loans and credit cards. Though, in theory, PPI is a good idea for protecting the card holder or loan recipient in cases of the unforeseen. PPI will cover payments on a loan or credit card for 12 to 24 months, depending on the terms of the insurance.
PPI may have different names, depending on the loan or credit card company. PPI may also be termed MPPI, or Mortgage Payment Protection Insurance. PPI on credit cards and loans may also be termed ASU, or Accident, Sickness and Unemployment insurance. PPI is also referred to as Loan Protection Insurance.
The Problem with PPI & Credit Cards
Many people in the UK have been mis-sold PPI on their credit cards an loans. Thousands of individuals have unknowingly had hidden PPI policies attached to credit cards and loans without their knowledge or approval. In some cases, the PPI that has been attached to loans and credit cards has been over-priced even when the card holder or loan recipient is aware of the insurance. Sometimes, PPI has been added to the loan as a lump sum. PPI has been mis-sold to individuals who did not know about the insurance or need the insurance.
Many individuals were informed by credit card companies that they had to purchase a PPI policy in order to qualify for the credit card. If this has happened to you, you have been mis-sold PPI. If PPI has been attached to a loan or credit card without your knowledge, you have been mis-sold PPI. The good news is that this mis-sold PPI has been deemed illegal and you may now file claims to recover your funds that were paid into the PPI on credit cards and loans.
The PPI Judgment
In April of 2011, mis-sold PPI was deemed to be illegal by the High Court. In the case of PPI, the British Bankers Association challenged the Financial Services Authority and lost their court case in judicial review in High Court and now banks and finance companies must refund mis-sold PPI to customers.
This means that individuals who have been mis-sold PPI may now file claims to have the funds they have paid into mis-sold PPI returned to them. In addition, many finance companies and credit card issuing banks have been fined for the mis-sold PPI.
Many companies and individuals have entered into the business of assisting credit card holders and loan recipients in the UK with the process of reclaiming their mis-sold PPI funds. If you are a pensioner, a student or self-employed, and you have been sold PPI on loans or credit cards, you are not even entitled to benefit from this type of cover. You have been mis-sold PPI.
Reclaiming Mis-Sold PPI on Credit Cards
Many companies have initiated the practice of filing mis-sold PPI recovery claims for individuals. Some recovery companies estimate that individuals in the UK have over £2200 in mis-sold PPI across their credit cards and loans. If you have taken out a loan, a mortgage or obtained a credit card account over the past 10 years, chances are good that you have been mis-sold Payment Protection Insurance.
You may approach the bank or credit card company and request a refund. However, if you are not reimbursed by the company, then you need to file a PPI claim. If the finance company or credit card issuer does not refund your PPI based on your request, there are several agencies and solicitors who will handle your case to reclaim the mis-sold PPI. The agency or attorney will first audit your account.
The amount of mis-sold PPI is then estimated and documented. Once the review is complete, the agency or attorney will submit your PPI claims. Once your PPI claim is filed, you will soon receive a refund for your mis-sold PPI. Many people are still unaware that they likely have been mis-sold Payment Protection Insurance.
Enlist the assistance of an agency or solicitor to review your credit card and loan accounts to see if you qualify for a PPI refund. File your claim as soon as possible. You may be owed several thousands for your PPI refund.
PPI Mis-Selling Complaints: News & Information
PPI Compensation payments boosting the economy
The Office of National Statistics has released figures suggestiong that the £10 billion in PPI compensation payments that have been made is boosting the economy.
This is nothing new in March we published an article where an analysis by Which? showed that UK consumers paid out £50 billion for PPI protection since 1996. The article also highlighted some other PPI statistics provided by the ONS
Payment Protection Insurance (PPI) Explained
Payment Protection Insurance (PPI) has played an interesting role in the world of finance over the past several years. This insurance product is intended to protect both the borrower and the lender in the event that the borrower becomes unable to make loan payments, but the product is often misunderstood. Furthermore, while the product is intended to provide a valuable safeguard, it was often abused and led to significant regulatory reforms as well as lawsuits with damages reaching well into the billions. Given the ongoing prevalence of this type of product, consumers will be benefited from understanding PPI, what is does and how it can be abused.
PPI Claims Service – Midlands, UK
Maple Leaf Financial have a specialist team of solicitors dedicated to dealing with the mis-selling of payment protection Insurance (PPI) products by the banks. We are happy to review these PPI products and to claim compensation for our clients where appropriate.
We will work with you to ensure that you get the correct PPI settlement or refund and any and all fair compensation that may be due to you as a result of PPI mis-selling. We will deal directly with your PPI provider, be it a bank or insurance company and neither we nor our specialist claims team will be fobbed off by them at any stage. If their offer is too low or derogatory and they won’t take us seriously we will challenge them on your behalf.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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