Payment Protection Insurance (PPI) is a financial product that is sold to people to insure payments are made on various loans in the event of default by the borrower. PPI is most often sold as part of a loan but can also be sold as its separate product.
While the concept behind PPI is easy to understand the nuances of this product can be quite elusive to even the most astute financial minds.
What is PPI?
PPI is a form of insurance that protects you against defaulting on a loan should you become ill, have an accident, or even in some cases lose employment. PPI was developed to help sell loans to people who worried about something happening to them.
Since the development of PPI, several laws and regulations have been passed to govern how it is marketed and when it has to be paid out and when it can be denied.
Do I have PPI?
The answer to whether or not you have PPI can be found in the documents of your loan agreements. The problem is that a lot of time these documents can be hard to understand. If you are not sure if you have PPI or not on a particular loan your best bet is to call the company that gave you the loan and asks them if you have PPI or not.
Why Would I Want to Reclaim PPI?
PPI is often mis-sold and given to people who actually can’t claim the PPI they were sold. When this happens, it is totally within your rights to be refunded every cent of you paid for PPI. Companies that use PPI will often make it very difficult to find in the documentation but offer it as part of all their financial products.
These companies often charge you for the PPI even if you never had any right to claim it should the need for this product arise. For example, if you were a college student when you made a loan that had PPI, chances are that while you paid for the product, the fine print stated that students did not qualify for PPI. In essence, what you did was pay for a product you never got.
For this reason, several laws have been passed that allow you to reclaim the money you paid for PPI especially if it was sold to you without there being any chance you could claim it.
Where do I go to Get Help Reclaiming PPI?
If you believe you have a right to reclaiming PPI, the best thing you can do is talk to a professional that helps people make PPI claims. This professional will tell you everything you need to know about PPI and help you reclaim money that you should have never been asked to pay in the first place.
While there are people who can reclaim PPI on their own, you are always best off consulting a financial professional who understands the process of PPI, thus insuring that you have the best chance possible at reclaiming your money.
Can You Trust the PPI Claims Companies?
Unless you’ve been asleep under a rock (or not living in the UK), you can’t have failed to notice the PPI scandal that has dominated the fiancé headlines over the past year or so. Just in case you haven’t heard about it, here’s a brief overview of what happened:
- Many UK banks sold insurance policies to millions of customers, know as Payment Protection Insurance (PPI). These policies supposedly protected the person if they were not able to repay a loan, credit card or mortgage, due to being out of work through illness, or other unforeseeable circumstances.
- It was later found that a huge number of these policies were sold to customers who couldn’t make a claim should they need to, because of their circumstances, or the customer never actually knew they’d been sold it and paid monthly premiums unknowingly.
- The press got wind of this scandal and the country exploded. If policies were mis-sold, then customers should be able to claim their money back. This view was shared by the Financial Services Authority (FSA), who challenged the banks whenever they appealed against complaints.
- By April 2012, the High Court ruled that the banks could not appeal against complaints regarding PPI. If it was found that the policy was mis-sold, the banks now had a legal obligation to repay the amount, in full.
Now over a billion pounds has been repaid to millions of customers, but there are still millions that have still not been claimed. As such, several third party companies have been set up to help track these people down and help them to make their claim, all for a small fee. But if you can claim directly from the bank, free of charge, why would you ever use one of these companies? Are they even safe?
As with many types of companies, you do have the ‘bad eggs’ out there who will use immoral methods to make as much money as possible. However, not all of the companies out there are immoral and do provide a valuable service.
Firstly, these companies are helping to track the people down who were none the wiser about the fact that they can claim money back. They even help people to find out if they did pay PPI in the first place. Without this, the banks get to keep the money in their greedy little hands.
Secondly, many of these PPI companies have in-depth knowledge of PPI, meaning that they can claim the maximum amount possible back from your bank. Many banks offer a fixed settlement, which is often much less than the amount that you are entitled to. Many people accept this offer and lose out on substantial amounts of money. PPI claims companies will not accept this, as it is in their interest to reclaim the maximum amount possible.
Thirdly, although the FSA has issued guidelines to make it as easy as possible to reclaim the cash, the process can often be time-consuming and confusing. Your PPI claims company will do all the hard work for you.
It is certainly worth doing your research before letting a claims company take hold of your case, as some companies offer better deals than others. However, there certainly are some great companies out there who offer a high level of service and reclaim the maximum amount possible back for you.
Factors To Consider
When it comes to insurance companies there can be a lot of factors that complicate how we can collect the claims on which we have paid. While it can seem like a difficult process how we can reclaim PPI insurance are many and varied, so taking the time to do so is a great way to be productive.
There are going to be times that a company will try to hold back the money they owe a person who paid into their policy, and in these instances, it can be necessary to hire an attorney and/or file a complaint with your local government agency. Such measures can seem a bit like overkill but in the long run, this is one of the best things you can do to safeguard the stability of your business.
If there is a judgment against your company and you need your PPI payout to stay afloat then there is no reason that you should not receive that money. Stick to your guns and have your attorney pursue legal action if the insurance company is not willing to pay back the money they owe your company.
Chances are that an insurance company will acquiesce once they come into contact with the powers that be and are enlightened as to the fact that they must honor their policy. Reclaiming PPI insurance can be a very big hassle for some companies, but it is worth it to be able to go ahead and receive the money you are entitled to.
There is no reason that an insurance company should be able to avoid the people who pay their bills, and if you should need your PPI policy there is no reason you cannot reclaim it.
There are a lot of legal and financial professionals out there who can advise a company owner of how to proceed, and often it boils down to a measure of resolve and due diligence concerning who will come out on top of such a dispute.
So do not hesitate to move forward with a legal claim if you know you are entitled to the money in question, many companies will attempt to keep your money from you but do not let them. Take charge of your financial rights and do not let anyone stand in your way.