Insurance Articles - Payment Protection Insurance Scams


by SHARON DAWKINS - Date: 2010-08-19 - Word Count: 476 Share This!

Unscrupulous brokers and creditors might finally have to stop their high pressured techniques and lies in regards to the sale of PPI. Even with all of the negative publicity and rules that have been added, the truth about payment protection insurance and the rip-off that has been perpetrated amongst hundreds of thousands of unsuspecting consumers is still ongoing.

Recently a new rule has been put into place by the Competition Commission that says that lenders are not able to sell PPI to borrowers for the minimum of 7 days after which the borrowed funds has been approved. This process obviously has the financial institutions in an uproar. Many financial institutions will hold the loan hostage and create a façade that the loan can not be granted without the purchase of the payment protection insurance premium.

Roughly six years or so ago, was when the PPI misuse came to light. Since that point a lot of financial institutions have paid out steep fines for the mis-selling of these premiums. They have furthermore had to reimburse millions of dollars to claimants whom demonstrated their cases were legitimate.

The banks and or brokers whom have been doing this mis-selling have their own reasons for doing this sort of activity. The financial institutions not only can charge you whatever they like with regard to these premiums (they are frequently 2x as much as if you found it at a private office), but next they add it on to your loan and you pay the finance charges on this as well as your loan. Independent brokerages on the other hand will make 50% commissions on each and every sale they make.

If you feel that you have been mis sold payment protection insurance you could have the opportunity to reclaim the premium and also the financial institutes may need to tack on Statutory Interest at 8% per annum, and in all actuality more could be awarded. Even if your loan or charge card is paid off, providing you can collect the proper documents, and details, it is possible to file a claim.

In conclusion, please find a short run-down for the primary situations on how individuals were being mis sold payment protection insurance; you were advised that in order to get a loan it was mandatory you purchased PPI, you were not told the exclusions of the coverage, you were sold PPI even though you were self-employed, you were not employed at your current job for more than twelve months, you were not asked of any prior medical conditions and you were not told the price of the premium. Invest some time into finding out if and how you can claim a refund, it will be worth it.

Get info on PPI claims by visiting Simplicity Claims where you can also find options for reclaiming mis sold payment protection insurance.


Related Tags: uk, ppi, payment protection insurance, ppi claims, mis sold payment protection insurance

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