Recently, PPI claims are very controversial because consumers are starting to make claims on their payment protection insurance. This type of coverage was sold to them the time that they have availed a mortgage, a loan or a credit card. It is designed to help people pay their loans if they were not able to pay due to unemployment, illness or disability, among other reasons that may inhibit them from paying back. The insurance is said to be covering for you in case you cannot pay.
What Does Payment Protection Insurance Do?
As said, it will cover for you in case you cannot pay your mortgage or loan during an accident or illness. It may also cover if you have been disabled or fired from your job. There are also some policies that can pay off your outstanding balance if you die.
Many consumers were mis-sold PPI when they get personal loans, car finance, credit cards and other types of loans. Many times, the type of coverage is sold at the same time you take out your loan. However, many people were reportedly unaware of this type of coverage. On the other hand, other people were undecided whether they will agree to take this coverage or not. Many PPIs are not cheap and so you may be paying higher than what you only owe. In case you were asked to take out a PPI, then you can think of your options and consider other means of repayment to avoid PPI claims.
Why PPI Claims Take Place
For many consumers, they do not know that they were sold PPI and many do not realize that they are getting it with their loan. That is why in the long run, they file this claim so that they can get compensated. As many of them were uninformed about this coverage when they availed the loan, they were not able to use it as well. Needless to say, this type of protection insurance was not able to help them when they needed it. From the beginning, the banking staff must have told you about the PPI and how much it cost. In many cases, however, it does not happen.
What You Have to Know
To avoid any frustrations and unpleasant surprises, you should know if your loan includes PPI and how much should you pay for it. If you discovered that your loan includes PPI, then you should read the written agreement clearly and thoroughly before signing it. Beware if the agreement says that you won’t get paid or compensated if you would like to make PPI Claims. Therefore, you should read the agreement thoroughly or ask questions if you wish to clarify some things about it.
There you have some things you may want to know about these claims. Definitely you have the right to compensation if you think that you were mis-sold PPI as part of your loan. Look up for your documents and start filing your claim to the Financial Ombudsman. Alternatively, you can seek help from a claim management company if you wish to. Learn more about PPI claims today!