Filing for a PPI claim is undoubtedly important. Yet with all the paperwork and legal processes involved, it also becomes overwhelming and daunting for average borrowers with no significant knowledge or understanding regarding the subject. For those who are planning to file a claim soon, here are some useful PPI claims advice you can use to better position yourself for a claim.
Before going into the actual PPI claims advice, it is important to establish the basics for readers who are unaware of their mis-sold PPI. In fact, others might not even be aware what the financial product is or how it works. PPI, short for payment protection insurance, is an insurance for a loan or mortgage that a borrower secures. If the borrower unexpectedly loses his sources of income and is incapable of paying the remainder of the debt, a PPI will be used to cover the expenses.
What has given these insurance policies quite the notorious reputation is the fact that most PPI policies are stringed to loans without the proper consent or even the awareness of the borrower. One piece of PPI claims advice is to determine if you’ve been mis-sold PPI. But how? There are many clear indicators or cues that you’ve been mis-sold a PPI and is qualified for a claim.
One indicator is extravagant monthly premiums. While your interest rates may be largely causing it, borrowers will be able to distinguish the huge difference between a loan with a PPI and one without it. If you are experiencing the same issue, then this puts you closer to a PPI claim.
The next piece of valuable PPI claims advice is to scan all paperwork involving your loan and PPI policy. Make sure that you were indeed mis sold with the plan and not because you failed to notice it early on. This will save you both time and effort from further advancing to the next steps of a PPI claim.
PPI refers to payment protection insurance. This is a policy taken by those who secure loans or mortgages as a safeguard incase they are unable to repay their loan or mortgage. However, there are times when lenders mislead borrowers in to taking PPI in order to benefit themselves. Such occurrences qualify the victims to claim PPI. This begs the question, what is your PPI claim worth?
The average value paid out as PPI compensation is about 2,700- 3,000 pounds. There are some who get as high as 22,000 pounds. The value of one’s claim depends on a number of factors such as the type of PPI that was sold to you. In sum, the value of PPI is the total of all the payments made minus the cost of the loan.
You can start by determining the cost of your monthly loan payments less monthly payments on PPI. Add the monthly value of the loan. The total monthly value of a loan can be obtained by adding the total monthly interest during the loan’s duration plus the loan’s principle. The next step is to obtain the actual amount you have spent on loan repayments. By subtracting the total actual value of loan repayment from the total monthly value of the loan, you get the amount of PPI owed to you.
With 3,000 pounds being the average value of a PPI claim per customer, there is no limit to the number of claims that can be made by one individual. Since a person can secure loans from a number of lenders, there is no limit to the number of PPI claims they can make. Since 2005, FSA has had over 1 million claims of mis-sold PPI. A 2011 report showed that Barclays set aside 1 billion pounds, HSBC, 270 million pounds and the Royal bank of Scotland, 1 billion pounds for PPI claims.
Some of the grounds under which one can claim PPI are; misinformation about the policy, you were unemployed or retired at the time of the agreement, you suffered a medical condition at the time of the agreement or you were under 18 or over 65 years at the time.
All individuals who have taken out PPI or Payment Protection Insurance on loans, credit cards or mortgages over the past decade are running out of time for contacting their lender or the bank to refund the policies because they might have been resold. Because of this, there has been a sudden boom in case of claims for PPI refunds during the last five years. Due to this, banks are making payouts that are amounting to billions of dollars and it doesn’t stop there because there are lots of people who have chances of getting their Payment Protection Insurance policies refunded as well. So much for a policy which was meant to protect the policy holder!
A Payment Protection Insurance judicial review is carried out by the court from time to time in order to see whether lenders are mis-selling PPI products or not. Because of the PPI judicial review a lot of people are disappointed since they are under the impression that they have to wait for the outcome of the review before they decide to take any steps against the bank. The truth is that it is nothing like that, individual consumers are free to contact claims company in order to have them review their payment protection insurance policies. Since such claims company has the right kind of expertise and knowledge therefore they are in a better position to tell if a policy is considered to be a mis-sold one or not.
Now you don’t always need to take the help of claims company, a lot of people would rather save the money which would have been spend on the fees of such company and do the PPI review themselves. Since the early bird catches the worm in this situation therefore it is advisable to take immediate action instead of brooding over whether or not you should file for a Payment Protection Insurance refund. You don’t have to feel alone in this process because you will be able to find plenty of Payment Protection Insurance refund experts online as well as offline.