When making a big purchase, most often than not, we don’t get too meticulous with the inclusions of our payments. However, being informed at what were actually getting can help us save tons of money. For instance, anyone who has bought a loan or a credit card should be aware of PPI of Payment Protection Insurance. Ideally, what it should do is help you make your payments just in case you cannot work because of an accident or sickness. Most insurance companies and lenders claim that it is needed or compulsory when in fact, if you see the big picture, its not really necessary for the majority. If you have not been fully informed about this, then most probably you have been mis sold PPI.
To know more if you have been mis sold PPI, ask yourself the following questions: Did the adviser say that PPI is optional and just an add-on? Was it made clear to you about its exclusions such as being self-employed/unemployed/retired or in a fixed contract? Did the adviser also mention that you would not be covered if you had a pre-existing health problem? Was it mentioned and explained to you that you may have to pay for PPI even when your loan has been expired?
If you answered no to any of these questions, then you’ve been mis sold PPI. Unfortunately, there are people that have been mis sold PPI without them knowing it, so it’s better to be aware of these hidden policies.
A lot of groups have already expressed their indignation with PPI because customers would just end up paying more on interest. Moreover, if you compare PPI to the rate of other insurances, its very low. Car and medical insurances pay out approximately 80% while house insurance pays out around 55- 75%. But for Credit Card and Personal Loan PPI, the range is just 11-20%. And knowing that people don’t want this small coverage, lenders may find ways to conceal these facts which results to people being mis sold PPI.
But probably the main reason why a lot of people have been mis sold PPI is because credit card and loan sellers get more money from insurances than the loan. According to research, lenders in the UK get profit of up to 5 billion in just one year. No wonder that theres an increasing number of mis sold PPI cases. This shows that its all about profit even to the detriment of others. One should remember that for every mis sold PPI equals more money out of the pocket of the working class consumers.
Fortunately, if you’ve been mis sold PPI, you can still make PPI claims. For example, in the UK, a customer who was once been mis sold PPI got back his 5,000 pounds plus 8% of the total amount. You can also do this by simply submitting a report online that you’ve been mis sold PPI and you want to reclaim it. It might take some time before your money will be returned but it’s definitely worth your effort. When the time comes that you can already reclaim your cash, you can say to yourself, never again will a mis sold PPI bring down your finances.