Tag Archives: payment protection insurance

0

What do with do with our PPI refund money?

Posted on by

Post the fall out of the Payment Protection Insurance scandal, banks have been forced to put aside millions of pounds to compensate the customers who they had wrongly taken money from.  The victims of the bankers were everyday people who had taken out mortgages, loans or credit cards, and had been opted into this additional insurance product without their knowledge, consent or had been told it was a compulsory purchase they had to take with their borrowing. Many were signed up for PPI who were not ever even eligible for the product as they were retired or self-employed and could never have made a claim on the payment protection insurance policy – thereby meaning they were paying premiums for an insurance that was completely useless to them.

The good news however is that for the thousands of people who the banks wrongfully took money from, there is the likely possibility to getting their money back.  They can go to a PPI claim company to get a refund for them or lodge a PPI claim directly with their bank, either way, more than £13 billion has been paid out in refunds from the banks and there are still actual billions waiting to be claimed (many people still aren’t aware if they ever had PPI or may be eligible so its worth checking!).

The average payout in a single PPI claim is £2,750.  And what do us Brits do with the money we receive in compensation? A survey conducted into this very question by online site VoucherCodesPro.co.uk reveals that the most popular thing to do is spend it on a holiday. Just under a quarter of all respondents chose to do so, with buying a new car coming second place at 22%.

The payout money was on average used for spending in some form within three weeks.  Household appliances (19%) and furnishings (13%) were high up in the list, and other items such as clothes, gadgets and shoes were also in the top 10: numbers 7 to 9 respectively.  17% used the money to pay off bills, whilst only 12% decided to save any of the money.

The additional consumer spending that the PPI claims payouts have fostered are therefore responsible for a huge boost to the UK economy, much needed in these austere times. The bankers have, however inadvertently (with all their blunders and misappropriations), actually helped the economy after all.

If you feel that you may have been mis-sold PPI, why not try an online PPI rebate calculator to figure out how much you may be owed. Most PPI claims companies offer a free PPI check or can look into you case on a no win no fee basis, so it won’t cost you a thing if you’re not eligible.

0

Mis-sold PPI on your Credit Card?

Posted on by

If you are currently holding a mortgage, car loan, or credit card under your name, there is great chance that you have been mis-sold Payment Protection Insurance.

It was only until recently that the terms and conditions of selling PPI policy’s changed. Originally, PPI was sold at the same time borrowers take out a loan. The function of PPI has always been to protect customers by covering monthly payments in the event that a borrower falls ill or is rendered as unable to work due to injury, disability, or loss of employment.

Unfortunately, most PPI policies did not live up to its guarantee of keeping loan payments current during times of dire need. Personnel from lending institutions failed in explaining the capacity, functions, and full extent of PPI, including the exclusions or exceptions which may render a borrower unfit to get its benefits. For instance, freelance or those who tagged themselves as self-employed or borrowers who suffer from preexisting medical conditions are denied PPI benefits, which in turn resulted in mortgage, car loans, and credit cards defaults not being covered they way they should have been. Obviously, the policies were sold to certain groups of borrowers who were ineligible for cover in the first place.

If you belong to any of these groups, or have noticed some vague terms and conditions under your contract agreement, you are most likely a victim of mis-sold PPI.

Re-check your agreement with a lender. Assess the terms and conditions and if the following words appear in your contract, there is a big chance you have been mis-sold PPI:

–          ASU

–          Loan care

–          Loan protections

–          Payment cover

–          Protection plan

You may or may not find these words on your agreement, but if you think it is likely to be a case of mis-sold PPI verify this by seeking the help of a claims management company such as PPI Claims Advice Line. You will receive the information and help you need in order to get the compensation you deserve for the mis-selling by the banks. Further information on claiming back PPI on credit cards can be found on here.