7 Reasons To Make Ppi Claims

People who borrow money via a mortgage, car, loan or other means are often told they need PPI (Payment Protection Insurance)

. This is supposed to pay their monthly payment should they become ill, unemployed or under some other circumstances cannot meet their obligation. It is a common practice with banks, credit card companies, auto companies and others. Faults have been found with this insurance which has resulted in many ppi claims.

Investigations have revealed that many times when a person signed for a loan, mortgage or other financial transaction the PPI was added on without their knowledge. In other cases, they were told that it was necessary to secure the loan. When it was added to the original amount, the person wound up paying interest on the insurance as well as the loan.

Many people who have this coverage and tried to file claims have found there were built in circumstances that they had not been advised of. As a result, they had paid thousands of dollars for nothing. The fine print on the PPI document will often reveal various things that do not apply to the policy. For example, a coverage on a mortgage loan in very fine print at the bottom says "owner occupied". Thus, if a person took out a mortgage and purchased a home for a rental this insurance would not be any good.

Many times this insurance has been included in the loan without the borrowers knowledge. This adds an additional cost to the loan. A mis-sold PPI is when the plan is sold without a full explanation to the borrower regarding the cost of the insurance and full details of the coverage. Many lenders have been making money for some time by selling insurance, which is worthless.

Recently the United States Financial Services Authority has started bringing these companies under scrutiny for unfair practices. The consumers, to have money charged for this insurance refunded, have filed many claims. It is not just the big lenders who have pushed this useless insurance. Lately many stores and businesses have sold this coverage, called ' unemployment insurance', to cover everything from cars to furniture.

Banks have been especially guilty of this practice on their loans and credit cards, often telling the customers that it is required. They are realizing huge profits with this action, knowing that few, if any claims will be made or, if they are, they will not be paid. Often the customer is paying additional interest on the loan due to the addition of the insurance to the original amount.

With a record of only 4% claims filed regarding the thousands of policies and many of them rejected it is obvious that this is a completely useless insurance policy that benefits no one except the lenders. The exceptions to being able to file a claim are enormous and cover almost every aspect that might occur, leaving the person who has a catastrophe, such as unemployment, with no way to make their payments.

Companies issuing this worthless insurance are well aware that few people are even aware that they are paying for it. Many of those who do know about it are unaware of how worthless it is. A number of people have filed ppi claims to get a refund of all charges they have paid.

by: Bradley Jenkins-Cooper

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