Reclaiming Your Ppi

By Author: Yossarian Smythe
Total Articles: 25
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If you have got loan, credit card or store card issued in the past six years you are eligible to reclaim £1000 from these companies. They have been miss-selling rather expensive insurance plans called the Payment Protection Insurance (PPI) policy that is sold alongside these various loans. The insurance cover has got no potential whatsoever in the favor of the consumer since the insurance is given only to those individuals who may not have a need for the same.

The protection is provided to the customers in the name of managing your loans at the time of sudden crisis like unemployment, sickness or accident. However, there are conditions like the customer should not have been unemployed, retired or self-employed or have a previously existing health condition to be able to take advantage of this plan. What is worse is that the customer is not well-informed about this when they are being asked to enroll into the policy and they are missold the product. Moreover, there is a monthly interest charged on this product as well,along with the loan interests that add up to a huge amount overall. Furthermore, most often the term ...
... for the insurance is lower than the loan term so in case of emergency you would be covered only for that particular period and not for the rest of the loan term where you would be expected to continue paying the insurance premiums.

Thanks to the constant pressure from consumer groups, the Citizens Advice Bureau and the media, the concerning government body has successfully imposed a ban on the sale of these PPI policies to the customers in the UK since May 2009. The good news is, all those customers who have been ripped off their money in the name of this exorbitantly priced unreasonable policy, can file a PPI reclaim and be entitled in reverting their money in full including interest and compensation along with all the premiums. As of now there are about 20 million PPI policies still effective in the UK. The money that the loan lenders tend to earn from these insurance policies is enormous, and may be even higher a profit than what they earn from the loan itself. For instance, an estimate of £5 billion is earned thanks to these policies by the various loan lending institutions, annually.

You currently have 3 options to go about filing a suit and reclaiming your PPI. One is where you hand over the responsibility over to a claim handling firm, the second is where you get a lawyer on your own and third is to take it to court yourself. Since there might be time constraints owing to your busy lifestyle or you might have lack of knowledge in the legal proceedings of the case it is advised to hand it over to the professionals who would guide you through well enough into acquiring your PPI reclaim. Choose these institutions wisely since many among those might also charge a heavy fee. Learn about them through the various online sources and choose the firm/lawyer who suits you best.

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.