PPI Claims
Payment Protection Insurance can be extremely useful insurance, however many PPI policies have been mis-sold alongside loans, credit cards and mortgages. There are many examples of PPI mis-selling and as a result may leave you with PPI that is no use to you if you came to make a claim. Reclaiming PPI is possible in this case and can either be started on your own, by the use of a Solicitor* or using a claims management company*. (*Fees may be charged and banks are obliged to investigate your claim without a fee regardless)
It is important to realise that making PPI claims is not just about claiming back what the borrower has paid, it also means claiming interest charges. If the loan has already been paid, then it is simply claiming everything back plus statutory interest. If the loan is still being repaid, the PPI Solicitor would advise that any settlement would reflect the future costs of the PPI and all interest charges are written off.
If the borrower at the time of the PPI claim owes money to the lender, the lender will usually have a contractual right to offset any PPI refund against the debt. If there is any PPI value left over, then the balance will be repaid to the PPI Solicitor and or the client.
The first ever PPI case was in 1992-94 (Bristol CC 93/10771). It was judged that the total payments of the Insurance Premium were almost as high as the total benefit that could be claimed. The case was proven and won. 10 years later, (Due to a non disclosure agreement) a copy of the judgement was sent to the OFT and CAB, soon after, a super complaint was raised.
The judicial review that followed, hit the headlines as it eventually ruled in the favour of the consumer, this came as good news to all that had/wanted to claim back their PPI.
Read more about this topic: Payment Protection Insurance
Famous quotes containing the word claims:
“In great contests each party claims to act in accordance with the will of God. Both may be, and one must be wrong.”
—Abraham Lincoln (1809–1865)