If you think you may potentially be unable to make repayments on your mortgage, credit card, or loan for a certain set of reasons sometime in the future, there is a type of insurance you can get to help cover these payments. This insurance is called PPI, or payment protection insurance.
For more than two decades, PPI has been sold in the United Kingdom. Most of the time, PPI was sold at the point of card activation in the case with credit cards or packaged into other borrowings at the point of sale. You would be asked whether you wanted to protect your repayments with PPI when you signed up for the agreement, whether it was online or in person. A monthly cost proportionate to the balance of your borrowing would be applied to your account if you decided to get the coverage.
A lot of mis-selling occurred when those who were offering loans insisted that PPI be purchased as a condition of the loan. In some cases, PPI was applied without the customer asking for it.
PPI’s Many Different Names
There is a different name for PPI at each lender or bank. These names include:
Credit Protection Insurance
Accident Sickness Unemployment (ASU) Cover
Loan Repayment Insurance
Credit Insurance
Payment Protection Insurance (PPI)
The principles are the same no matter what it is called. The policy steps in if you cannot make your repayments when you become unemployed or are ill. A lot of mis-selling of PPI occurred because many customers’ situations did not meet the eligibility requirements, so the policy providers were not stepping up to cover the repayments.
The root of this issue was sales advisors not checking to see if the customers were eligible to be covered in the first place before selling to them. For example, those who are self-employed, already ill, or older than the upper age limit for some policies were still being sold the product.
PPI Claim – Explained
Before they can contact the consumer about cover, lenders have to wait at least seven days from the time they issue credit cards or loans. This opens up the market for independent insurance providers to compete, and it reduces the chance of mis selling to an ineligible policy holder. These days, PPI is still readily available, and you have a wide selection of providers and policies to choose from.
How To Claim PPI
So, you have your PPI insurance, and you tried to use it to cover your repayment but were told that you were not eligible for PPI. What do you do next? The first step is to find a good “no win no fee†company, such as Canary Claims to represent your PPI claim.
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