Reclaim PPI

For many people the saga that has arisen regarding payment protection insurance (PPI) is confusing, and this is understandable. While most of us have been bombarded with text messages telling us we can claim back unfair PPI charges there has been little in the way of explanation, and there are many who may be able to reclaim PPI who are unaware of their rights. To begin with we will have a look at what PPI is, and then explain why you may be entitled to claim back unfair charges.


Payment protection insurance is a range of products that provide insurance in specific circumstances. Primarily this form of insurance is there to help you in the event you are made redundant, and cannot keep up the repayments on a loan, mortgage or other credit agreement. Some policies will cover you only for involuntary redundancy while others may include cover for loss of earnings thanks to sickness or accident, and they will generally be actionable for a period of 12 months. If you have entered into a credit agreement in recent years there is a strong chance that you will be paying into a PPI policy, and also a chance that you may be able to reclaim PPI charges that are considered unfair.


How Do I Know If I Can Claim?


There has been a great deal of controversy surrounding PPI payments of late, and it is essential that you understand why. While PPI is a regular product that is often sold, it transpired that the regulatory bodies who look after consumer finance received a number of complaints alleging the mis-selling of policies. Such a serious allegation had to be investigated, and it was discovered that there had been quite commonplace mis-selling of PPI policies.


Put simply, it has always been the case that the consumer is allowed to shop around for their own PPI policy, and this will usually get them the best value deal. It was found when investigated that many lenders, some of them well know high street names, had inferred to borrowers that in order to be given their loan or mortgage they would have to take out a policy offered by the lender.


This policy, inevitably, would be a higher price than any that may have been found elsewhere. This has been the most common form of mis-selling, and is usually the cause of someone choosing to reclaim PPI charges. For the record, policies were also found to have been sold to people who were already retired, which immediately makes the policy useless.


The result of the investigation was that heavy fines were levied on the perpetrators, and the regulations surrounding the selling of PPI were revised. It is now against the law to sell PPI at the point of sale of a loan or credit agreement, and there is a mandatory week between the granting of a loan and the date on which PPI can be sold to the borrower.


What Should I Do If I think I have a Claim?


The first step is to get together all the paperwork relating to any loans or credit agreements that you think may be affected, and to read them carefully or agreements about PPI. If you find you have a PPI policy and you believe that you were not given your full rights to look or a better deal then you undoubtedly have a case to make.


For many people the prospect of bringing a case to court is too daunting, but the legal industry has recognised that more people than ever before are looking to reclaim PPI charges and there are now many solicitors who operate specifically in this area of the law. Using a ppi claims company gives you the best chance of success, and enables you to avoid the stress and time consuming effort of putting the case yourself.


How much will it Cost?


It is a common myth that setting out to reclaim PPI with the help of a solicitor will be an expensive affair. Many offer no win, no fee deals in which you will only pay a fee if your case is successful, and this is a very good deal to look for. You can find solicitors on the internet or advertising in the press who specialise in the area of PPI claims. If you think that you have been mis-sold PPI you should take action right away, for you may be entitled to claim back a not inconsiderable amount of money.

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