_Accident Compensation Claims
_Accident Compensation Claims - Lenders Spent Billions for PPI Compensation Claims
PPI Claims - _Alongside mortgages, credit cards and loan transactions, PPI or Payment Protection Insurance is included. Consumers were pressured to take PPI policies as a compulsory requirement to any loan transaction that required credit and this started in the mid 1990’s. The reason why lenders are forcing consumers to take the insurance even though they don’t need it is because of the huge profit that these PPI policies will generate for them. Lenders can actually multiply their actual profit from a loan by up to a third or more when the consumer would complete the term of the loan and the insurance plan itself that is why they force consumers to take up this expensive insurance that is no use for them.
PPI policies are offered to consumers in two ways. It could be through a “monthly premiums” policy or a “single premium” policy. The single premium PPI policy is actually deceptive. The monthly premium PPI policies are common insurance policies that cover the original loan payments if ever the consumer won’t be able to pay the loan due to accident, sickness or unemployment. The actual loan payment and premium payments are completely separate and these policies can be increased, decreased or cancelled any moment. Though these policies are expensive, consumers are given the option to cancel it anytime they want that makes these policies completely fair for the consumers.
In this case, single premium policies are very different. The payment made for the policy is included in the total loan. Lenders combine the overall monthly premiums to be charged over the 3-5 years insurance cover and then they add this amount to the original loan. The additional charge to the borrower and profit to the lender can increase the total cost of the original loan by a third or more than that. Major lenders burdened the creditors to take up the Payment Protection Insurance just to gain a lot of profits and millions of people were affected in the UK.
Consumer groups like the Citizens Advice Bureau and many others were pressured relentlessly by this PPI mis-selling and the aim to acquire huge profits by major lenders. This has caught the attention of the media and through the help of FSA or Financial Services Authority, the practice was banned and the sale of the PPI policies ended in May 2009. Additionally, people who had certain protection policies could pursue a claim for reclamation of their payments and other benefits.
The British Bankers Association (BBA) complained that the rules were unfair and so they have challenged the FSA in high court. The court ruling went against BBA in April 2011. The amount of £4.5 billion is now available to compensate the consumers who were mis-sold PPI policies. Are you interested to know if you are eligible for a PPI compensation claims?
If you are in doubt that you were previously mis-sold PPI, then the best thing for you to do is to take the necessary steps to determine your eligibility for compensation. If you have paid for payment protection insurance for the last six years or if you have still an active PPI policy, and then you may be eligible for a claim. If you have purchased the policy six years ago, you will be required to present relevant documents.
A template letter for complaints was provided by the Financial Ombudsman Service and a copy of the PPI consumer questionnaire for the consumers to fill out. The Financial Ombudsman Service recommends the consumers to begin with a complaint sent to the loan provider. FSA reports that the rejection rate is of about 60% so if your get rejected, then it’s time for your to take your complaint to the ombudsman. Then the last thing for you to do is to ask help from a firm that will evaluate your PPI claims and if they prove that your claims are legal, their legal representatives will pursue your claim on a no win, no fee basis.
PPI Claims - _Alongside mortgages, credit cards and loan transactions, PPI or Payment Protection Insurance is included. Consumers were pressured to take PPI policies as a compulsory requirement to any loan transaction that required credit and this started in the mid 1990’s. The reason why lenders are forcing consumers to take the insurance even though they don’t need it is because of the huge profit that these PPI policies will generate for them. Lenders can actually multiply their actual profit from a loan by up to a third or more when the consumer would complete the term of the loan and the insurance plan itself that is why they force consumers to take up this expensive insurance that is no use for them.
PPI policies are offered to consumers in two ways. It could be through a “monthly premiums” policy or a “single premium” policy. The single premium PPI policy is actually deceptive. The monthly premium PPI policies are common insurance policies that cover the original loan payments if ever the consumer won’t be able to pay the loan due to accident, sickness or unemployment. The actual loan payment and premium payments are completely separate and these policies can be increased, decreased or cancelled any moment. Though these policies are expensive, consumers are given the option to cancel it anytime they want that makes these policies completely fair for the consumers.
In this case, single premium policies are very different. The payment made for the policy is included in the total loan. Lenders combine the overall monthly premiums to be charged over the 3-5 years insurance cover and then they add this amount to the original loan. The additional charge to the borrower and profit to the lender can increase the total cost of the original loan by a third or more than that. Major lenders burdened the creditors to take up the Payment Protection Insurance just to gain a lot of profits and millions of people were affected in the UK.
Consumer groups like the Citizens Advice Bureau and many others were pressured relentlessly by this PPI mis-selling and the aim to acquire huge profits by major lenders. This has caught the attention of the media and through the help of FSA or Financial Services Authority, the practice was banned and the sale of the PPI policies ended in May 2009. Additionally, people who had certain protection policies could pursue a claim for reclamation of their payments and other benefits.
The British Bankers Association (BBA) complained that the rules were unfair and so they have challenged the FSA in high court. The court ruling went against BBA in April 2011. The amount of £4.5 billion is now available to compensate the consumers who were mis-sold PPI policies. Are you interested to know if you are eligible for a PPI compensation claims?
If you are in doubt that you were previously mis-sold PPI, then the best thing for you to do is to take the necessary steps to determine your eligibility for compensation. If you have paid for payment protection insurance for the last six years or if you have still an active PPI policy, and then you may be eligible for a claim. If you have purchased the policy six years ago, you will be required to present relevant documents.
A template letter for complaints was provided by the Financial Ombudsman Service and a copy of the PPI consumer questionnaire for the consumers to fill out. The Financial Ombudsman Service recommends the consumers to begin with a complaint sent to the loan provider. FSA reports that the rejection rate is of about 60% so if your get rejected, then it’s time for your to take your complaint to the ombudsman. Then the last thing for you to do is to ask help from a firm that will evaluate your PPI claims and if they prove that your claims are legal, their legal representatives will pursue your claim on a no win, no fee basis.