The Financial Services Authority (FSA) took discovered of the 2.75 million clients that were victimized by mis-selling of PPI. Because of this, all financial companies were required to review their own records that have PPI during the last five years. If found that it has been mis-sold then affected consumers were given the right to claim back PPI payments they have already paid.
The concept of PPI is to ensure the policy holder to make payments on their loan just in case some untoward circumstances occur which will prevent the borrower to earn income and settle the debt. Clearly it is a good insurance coverage, however because of the greed of the lenders it was mis-sold to unsuspecting consumers that did not need the insurance or probably were not eligible to claim out in the first place.
Actually such dishonest practices tend to be deliberately executed by not giving the borrower detailed information about the coverage PPI will offer. The potential basis for such actuation is to prevent the debtor not to take the insurance policy. There's also a possibility that borrowers were tricked with suggestions that PPI is mandatory with the loan they were obtaining.
There were even instances wherein the debtor was charged with a single premium policy which was paid in one advance payment. This means that the premium was included with the loan increasing it up to 40% in some cases. Therefore the debtor will need to pay for a longer time and with higher interest. While some PPI will only last from 4 to 5 years and if the loan will require longer paying out then the rest of the period will no longer be covered by the insurance. There are even a few PPI policies that omit protection on the first 6 months or other specified periods.
Hence the best proof that the borrower can prove that PPI was mis sold could be the following factors:
1) The borrower was not given enough facts with regards to the coverage of the insurance 2) Said insurance plan was not ideal for his age, employment as well as medical condition 3) The borrower was put under pressure that taking the insurance is a prerequisite to have.
To conclude, mis-selling of PPI happens when the borrower was not granted appropriate and also thorough information about the insurance plan, the actual borrower will not benefit from the insurance policy because of the standing of his employment, health and age and finally the particular borrower was compelled to take the insurance as he was told that it was a prerequisite for the acceptance of his loan.
To claim back PPI charges, a letter of complaint must be filed with the lender company or from the insurance company that was representing them during the closing of the loan. It can actually be done independently. On the other hand, since it can be tiresome and involves a lengthy process it will be advantageous to hire a claim management company to help you with your case. The reason for this is that they already know how to handle similar case and have more experience in making the claim successful. Nevertheless, if you think you will gain more by hiring them make sure to choose a company that offers a "no win no pay" policy. That way it will not cost you anything if at any event your case will not prosper.
The concept of PPI is to ensure the policy holder to make payments on their loan just in case some untoward circumstances occur which will prevent the borrower to earn income and settle the debt. Clearly it is a good insurance coverage, however because of the greed of the lenders it was mis-sold to unsuspecting consumers that did not need the insurance or probably were not eligible to claim out in the first place.
Actually such dishonest practices tend to be deliberately executed by not giving the borrower detailed information about the coverage PPI will offer. The potential basis for such actuation is to prevent the debtor not to take the insurance policy. There's also a possibility that borrowers were tricked with suggestions that PPI is mandatory with the loan they were obtaining.
There were even instances wherein the debtor was charged with a single premium policy which was paid in one advance payment. This means that the premium was included with the loan increasing it up to 40% in some cases. Therefore the debtor will need to pay for a longer time and with higher interest. While some PPI will only last from 4 to 5 years and if the loan will require longer paying out then the rest of the period will no longer be covered by the insurance. There are even a few PPI policies that omit protection on the first 6 months or other specified periods.
Hence the best proof that the borrower can prove that PPI was mis sold could be the following factors:
1) The borrower was not given enough facts with regards to the coverage of the insurance 2) Said insurance plan was not ideal for his age, employment as well as medical condition 3) The borrower was put under pressure that taking the insurance is a prerequisite to have.
To conclude, mis-selling of PPI happens when the borrower was not granted appropriate and also thorough information about the insurance plan, the actual borrower will not benefit from the insurance policy because of the standing of his employment, health and age and finally the particular borrower was compelled to take the insurance as he was told that it was a prerequisite for the acceptance of his loan.
To claim back PPI charges, a letter of complaint must be filed with the lender company or from the insurance company that was representing them during the closing of the loan. It can actually be done independently. On the other hand, since it can be tiresome and involves a lengthy process it will be advantageous to hire a claim management company to help you with your case. The reason for this is that they already know how to handle similar case and have more experience in making the claim successful. Nevertheless, if you think you will gain more by hiring them make sure to choose a company that offers a "no win no pay" policy. That way it will not cost you anything if at any event your case will not prosper.
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Ditulis oleh:
Unknown - Wednesday, November 21, 2012
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