Payment Protection Insurance (PPI) is a type of loan protection that is put in place. Insurance of this variety is written for such tragedies as personal illness or unemployment. The policy terms can vary significantly, and the range of benefits can be a subject of legal interpretation. A successful PPI claim will depend on the policy details and the specific matter of any claim.
Payment protection policies are sold as part of a loan, mortgage, or credit card product. A stand alone PPI policy can, also, be purchased. The specific details of any insurance policy need to be addressed and researched before any purchase. The actual proceeds of the insurance claim need to be sent to the loan purchaser, for example.
A PPI CLAIM IS REJECTED
This is probably the first problem that any insurance policy owner will address. What has caused the claim to be rejected. Complaints against insurance companies often arise out of this matter. In this type of instance, the insurance company refuses to pay out. Often there is an exclusion clause in the small print of the insurance policy. Interpreting why such an exclusion is valid may be the work of a response team that is looking into the rejected claim.
A PPI CLAIM IS MIS-SOLD
Another type of complaint against a loan protection policy is that the insurance was mis-sold. The consumer did not realise that the policy was saying a certain procedure. The policy was not adequately explained to them. The policy was bought, and the purchaser did not understand that it was not suitable for them. The actual mechanics of the policy were not explained adequately.
REFUNDS OF PREMIUMS
A payment protection policy may be purchased up-front with a single premium, that is often added to the final loan amount. If the loan is paid off early, then a small refund may be available to the purchaser. Often complaints occur because the amount returned is small.
Complaints and successful PPI claims come in several forms. The insurance claim can be turned down for reasons that are not understood. Knowing the exact terms of any policy is critical.
Often there are long delays with a claim that may take up to four years to settle. A deluge of claims may cause the file to be set aside for some time. Another blockage to a fast settlement is the legal response brought about by the bank in question. Some financial institutions are, also, using the long delays to encourage customers to settle disputes rather than take their complaint any further.
FINANCIAL OMBUDSMAN SERVICE (FOS)
The Financial Ombudsman Service was created in order to settle disputes between financial businesses and their customers. A deadlock with a PPI dispute is often the subject matter of a case with FOS. This service handles matters of dispute relating to banks, insurance companies, or financial groups. An independent arbitration of a disputed case can be applied for. The financial group is bound by the decision of the FOS. There is a fee imposed for each complaint.
The service is free for the customer. Frivolous claims are usually avoided and not accepted. One factor that has occurred is that the banking industry seems to have become more adversarial with its customers. An adjudicator is assigned to each claim, however, the wait time for such an appointment seems to have increased.
Some of the cases are able to be sorted out initially. More experts on the service staff have allowed some of the complaints to be resolved without much damage. However, the initial resolutions are sometimes refused, and the cases may proceed to the long process track.
INVESTIGATING A CLAIM
Investigation of a claim will include an estimate of how long the resolution track may take. Finding the right investigators that have the correct skills and qualifications to deliver complex decisions is a difficult undertaking in itself. Often a bank may deliberately drag out a claim, and this is one matter that is frequently addressed with an investigation. Recently both the financial institutions and the FOS have increased their staff in order to have the resources they need for the many claims that have arisen. The banks, however, seem to have the deeper pockets. The current deluge of PPI claims was never foreseen by either the banking industry nor the government agencies that oversee such issues.
SUCCESSFUL PPI COMPLAINTS
Successful complaints and those that are less sympathetic are frequently coming into the Financial Ombudsman Service. Lenders have charged customers for insurance that, at the least, is misunderstood by the purchaser. Usually the buyer of such a policy sees this insurance as a safety net against any unforeseen misfortunes. If the purchaser has an automobile accident or prolonged illness, then a claim may be filed against the loan payments that are due. If the buyer becomes unemployed in today’s erratic economy, then the policy owner may file a claim against the loan payments.
The problems between the customer and the lender begin, usually, when the insurance claim is turned down. Perhaps the claim is rejected because the insurance policy does not cover the specific claim that the purchaser has alleged. The policy may have been mis-sold, and the purchaser has an insurance policy that is useless under the particular disaster that has occurred.
Many of the rejected claims occur because the policy does not cover a particular kind of claim. What was understood at the beginning of the insurance policy purchase is often a part of any complaint against the financial company. Was the policy mis-sold? What specifically was understood about the insurance coverage? What are the specific circumstances that are covered by the insurance policy? Who is paid for the disaster that has occurred?
THE INSURANCE POLICY IS FOR THE BANK ITSELF
Some of the claims against the PPI policies are seen as the territory of the bank itself. In other words, the insurance was purchased so that the bank will be covered in case of a disaster with the customer. Nonpayment of claims seems to be the banks territory. Further litigation against such PPi claims will assist in determining the future pay-outs of these types of complaints.
PPI Claims News
Can I claim PPI on Barclaycard?
If you purchased payment protection insurance (PPI) with your Barclaycard, then you may be able to make a claim against the company. The PPI scandal has rocked the nation and resulted in huge numbers of PPI claims involving the UK’s largest financial institutions. Customers who were victims of mis-selling have a right to file a claim for monetary compensation.
PPI Claims for Alliance & Leicester
Although Alliance & Leicester has been ordered to send notices to customers who have been mis-sold PPI, the real number of customers the bank mis-sold PPI to by far surpasses those who have actually received notices. If you are uncertain whether you have PPI from Alliance & Leicester, check through all of the paperwork that you were given at the time of taking out the loan, mortgage, credit card account, or other financial agreement. If you find evidence or think you have been mis-sold PPI, read on to find a step-by-step guide on how to claim back your PPI from Alliance & Leicester.
Monthly PPI Claims Payouts for July 2013 is £ 528 m
The Financial Conduct Authority (FCA) released its latest totals on monthly PPI Claim Payouts. July 2013 totals for PPI repayments was £528 million which brings the total of PPI Claims repayments made sine January 2011 to £11.5 billion.
The figures are collected from 26 firms and financial institutions that made up for 96% of all the Payment Protection Insurance complaints from last year.
FCA investigates Two Banks for mis handling PPI Claims
The FCA has confirmed that they are investigating two Banks for mis-handling PPI Claims. This comes after a report last week that the Financial Ombudsman (FOS) has seen an increase of PPI complaints being filed with them.
PPI complaints that are rejected by Banks are typically sent to the FOS for review. Our review of this last week pointed out that the FOS found that 8 out of 10 PPI complaints were upheld by the FOS. This has lead to the FCA stepping in to investigate the two main Banks that are rejecting valid PPI claims from customers.
PPI Claims Service
Maple Leaf Financial will work with you to ensure that you get the correct 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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