A Discussion on Mis Sold Ppi

Before getting into the main idea of mis-sold PPIs, let us have a quick review on what is Payment Protection Insurance or PPI.

Definition of Payment Protection Insurance

PPI is a kind of insurance offered to individuals to look after any future outstandings and repayments on loans, mortgages or credit card should the person unable to pay due to illness, redundancy or death. It is a standalone policy but more commonly taken out with loans.

Explanation of Mis-sold Payment Protection Insurance

Mis-sold PPI comes off when the person has no idea that he is being signed up for the policy. Such act persuades the person to pay for additional monthly premiums. And the fact that charging a consumer for something that he is not aware is indeed insidious. Worse scenario is that most of PPI claims are sold to self-employed or unemployed individuals who should not have been able to receive the policy. The reason as to why many PPIs are being mis-sold is the greed intention of most companies to get high sales.

Authorities on Mis-sold PPI

In 2011, the British Banker’s Association has order banks to pay off consumers that have mis-sold PPIs. For this reason, lenders like Egg and HSBC have been fined and are now doing reclaims on the policy. Investigation was also required, whether or not the consumer files for a complaint. This legal action has cost billions of pounds of bank’s savings.

The Right to Reclaim PPI

All receivers of PPI policy have the right to pursue a PPI claim given that it was declared as mis-sold. Anyone can handle his own claiming process but seeking for a licensed Claims Management Company may speed up the procedure. The Premier Claims Plus, for example, can reclaim the policy for as short as 11 days. This site is licensed and regulated by Ministry of Justice.