What is PPI and how did it come to existence?
PPI is basically an insurance cover against loans, credit cards and other financial agreements. The insurance is made to make sure that the borrower makes the payment to the lender even if he is not able to make the payment because of unemployment or sickness. Generally, the PPI takes care of the payment for a period of 12 months in which the borrower has to make arrangements to make the payments by self.
In past few years, PPI has been one of the biggest scandals in UK. Many banks have been draining money from individuals in the name of PPI premiums and not refunding the money even if they are found eligible. There have been many cases where people try to reclaim their PPI and it goes on for years. Many individuals were mis-sold PPI even without the proper knowledge about the insurance and its refund. Here are some common points cleared about PPI for your clarity about the whole process. Some of them are mentioned below:-
Addition to debts –
If you are being mis-sold PPI this could mean that the premium is adding about 1000 pounds to the protection. Many people are unaware of the fact that if you make your payments regularly and have a stable income your PPI is never used. It essentially means that the protections money that you have been paying is completely unused and can be reclaimed.
Money owed –
PPI is sold for many financial agreements, but most commonly it is sold against loans and credit cards. Basically the amount your pay for your credit card PPI is about 15% and can rise up to 30% with time. The percentage does sound a little over the top, but after years you can reclaim the money and the refund will amount to thousands of pounds.
Other items sold with PPI –
Many people are still unaware of PPI and different items which are sold with a PPI attached to it. Just to be on the safe side you must know that PPI can be mis-sold in the following items –
- Store cards
- Car finance
- Secured loans
- Monthly paid insurance.
If you are not able to get your PPI refund you should consider going to the best PPI claims company. It is in your rights to get that sum of money.