PPI also stands for Private Protection Insurance refers to the kind of insurance that has been designed to cover your credit card repayments or loans. It covers a period of up to one year after the occurrence of an event such as a road accident, sickness or loss of employment which may hinder you from making the regular payments. While it can be of assistance to many people in insuring against risk, there have been numerous cases of the mis-selling of the PPI and following a ruling by the courts a few years back, it is now possible for people to whom the Private Protection Insurance might have been mis-sold to make insurance claims. For many people, these claims amount to thousands of pounds in compensation.
Thanks to the claim process that had been put in place by the financial regulatory authorities, there are millions of people in the UK who have received over £17bn in premiums after filing successful complaints. But if you are unfamiliar with the process, you could have your claims complaint that you have filed denied or even delayed more than is necessary.
The Bad PPI Policies
Not all PPI policies which were sold were bad but some were bad. Those to whom the PPI was mis-sold will end up paying up thousands in worthless premiums which they shouldn’t be paying in the first place. In many financial institutions, the sales staff selling the Private Protection Insurance are usually incentivized and they were hence over-enthusiastic in selling the insurance and in some cases, they even deliberately misinformed buyers or with-held some crucial information which resulted in buyers signing up for the private protection insurance even in cases where they really didn’t need it.
If you have been paying for the Private Protection Insurance, you should ask yourself whether you really need it in the first place. The areas where it was most commonly mis-sold was in the credit cards and loans sector, yet with a loan, you should have been able to cancel the insurance or even take a standalone policy that is cheaper since you do not have to pay for the additional commissions that the banks and building societies charged for selling the product on behalf of the insurance companies.
Some of the cases of borrowing where you might have had purchased PPI along include the following:-
· Store cards
· Secured Loans
· Dealership issued car finance plans
· Monthly paid insurance programs
The good thing about the PPI claims process is that, there is no deadline for making the claims process. You can file a claim at any time you feel like. If the insurance has been active for the last six years, then the claims process will also be a lot easier though this is generally not a hindrance. If your insurance policy ended over six years ago, then it might have passed the statute of limitations over which the banks are required by law to keep records and your chances of success might be a little lower although you could still give it a try with a good PPI claims partner by your side.