Ppi Banned, Ppi Reclaims To Be Done

By Author: Yossarian Smythe
Total Articles: 25
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The Payment Protection Insurance (PPI) plans have been a controversial topic for some time now. The PPI has been effective in various forms on various loans, credit cards and store cards and so on for about 15 years now. It was only recently, that it has been brought to light of the concerned government officials that these plans are pure means of earning enormous profits to the sellers of the plan. Most banks and other lending institutions are making huge profits off the PPI sales. In the UK, about an average of £5 billion is acquired from the current existent PPI plans and this add up to profits substantially more than what is earned from loan interests and other charges.

PPI is not advisable when sold via the same bank that provides you the loan because you as a consumer end up being over-priced for something that may or may not be of use to you. The people generally eligible to make use of this plan are the ones who have no immediate requirement for the plan and thus you just end up paying for the premiums and the interests therein of a value more than what is required. Owing to these obvious drawbacks of the PPI ...
... plan most consumer groups, the Citizen Advice Bureau and the media in the UK have pressurized the FSA and the government into banning the sale of loan-adjoined PPI via banks and other lending institutions. These are sales that were in the form of ‘single premium' plans that have been officially abolished.

The Competition Commission has proclaimed that the bank and other lending institutions must wait 14 days following the issue of loan or credit card to sell the PPI to the customers. This period allocated to the consumers would give them a chance to compare different payment protection products available via other means. Also this avoids the misconception of many consumers wherein they are led to believe or just assume that enrolling into the plan is mandatory to issue the loan. However, the single premium PPI policy has been completely banned that potentially stopped the customer from switching the product with another provider or comparing other existing deals.

PPI reclaims are being practiced all over UK for all those who do not find a potential use for the product and would like to have all that has been spent on the PPI on grounds of being missold the product. 99% of the cases are the cause of miss-selling and it is rather easy to get a PPI reclaim if you fall into certain criterion of miss-selling. If the product was sold online your stand may be weak because online deals usually have a copy of the terms attached. The only exception to this would be if the seller provided you with an online form of ticked boxes where you were required to opt-out rather than opt-in. Also, PPI reclaim can be only done on policies that are not older than six years.

The author of this article knows all about PPI and has written many articles on PPI Claims. And the author has an excellent knowledge in PPI Reclaim and has been in finance sector for years.