PPI Claims (Payment Protection Insurance)
Were You Mis-sold Payment Protection Insurance (PPI)?
You're not alone. We've claimed back tens of thousands of pounds in PPI refunds for our customers in 2008. Plus, we operate on a no-win, no-fee basis, so you've got nothing to lose by starting your PPI claim today.
If you can answer 'Yes' to any of these questions, we can get you a full refund, plus interest:
- Were you pressured into taking our Payment Protection Insurance?
- Was PPI added automatically to your loan?
- Were you told PPI would increase your chances of getting the loan?
- Were you told you must have PPI?
- Were you self-employed or unemployed when you took out the loan?
- Did you repay your loan before the end of its term, but didn't receive a PPI refund?
If any of the above apply to you, complete this form to begin your PPI claim:
FSA Findings
Following much recent uproar from unhappy customers who feel they were mis-sold PPI (Payment Protection Insurance), the Financial Services Authority (FSA) has launched a free service to help consumers compare PPI products on its consumer website Money Made Clear. In early September 2008, the Competition Commission said that a lack of competition between companies selling PPI had resulted in customers being overcharged by £1.4 billion a year. This is good news for the thousands of people with payment protection insurance that can now make a PPI claim to get a full refund and compensation.
People who want to buy payment protection insurance (PPI) can now get advice from the website of the Financial Services Authority (FSA). The watchdog has launched a set of tables to help consumers compare the policies on offer and their cost.
http://www.moneymadeclear.fsa.gov.uk/news/product/unfair_contracts/ppi/ppi_information.html
Who has been fined?
HSBC-owned lender HFC Bank was fined a record £1.09m by the Financial Services Authority for failing to treat customers fairly when selling Payment Protection Insurance. The regulator said today that between January 2005 and May 2007, HFC sold PPI with 75pc of the loans that it provided - exposing around 163,000 customers to the risk of buying PPI which was unsuitable for their needs.
GE Capital were also fined £610,000 and Capital One were fined £175,000 for miss-selling PPI.
PPI Rhyme and Reason
PPI is one of the most controversial products to be offered to consumers over the last few years and has generally been offered by lenders with credit cards and loans at the time of application.
PPI policies were sold to offer protection against inability to cover monthly repayments due causes such as illness or redundancy. The problem was the fine print attached to these policies exclude many policyholders from making a claim. This has been judged to be “unfair” by the FSA.
PPI involves a one-off premium which is added to a loan at the outset. The borrower then pays a regular monthly amount which this includes a repayment of both the original capital plus interest, and the PPI premium as well. If the loan is repaid early, the borrower still has to pay off whatever is left owing on the single premium insurance, even though it’s no longer needed. Often, a redemption penalty is also applied. In effect, a borrower ends up paying several times over for the cover.
You apply for a loan on the phone and it is almost certain that a quote includes the cost of cover for the monthly amount you will be expected to pay back - PPI cover is often simply added to the monthly repayment cost of the loan. The consumer has not been told about this. This quote is then formally sent as a contract to the consumer to be signed. It is only when the pre-filled application form is received that the customer discovers the insurance has been tacked on – at which point most people worry that if they refuse to take it, their application might be rejected. If that has happened to you then we can help you make a PPI claim.
Start Your PPI Claim Today
Complete our simple form and we will get in touch with you to sort out your PPI claim.
Some calculations suggest that the cost of PPI cover, plus interest, can be up to 20% of the actual interest payments on the loan itself. If you really need protection, it can make far more sense to buy the cover separately from an independent broker. It is not only cheaper, but you face a smaller redemption penalty.
Which? Money research
Researchers from Which? Money posed as customers, applied for loans over the phone with 41 different lenders and found that 24 of the 41 firms included payment protection insurance (PPI) automatically when customers applied for personal loans. Some lenders quoted both with and without PPI and only one lender did not include PPI on any quotes.
The results for internet applications to - Lloyds TSB, Tesco and NatWest initially quote with PPI and the borrower has to click through to another page to get a quote without it.
There are an estimated 20m policies active in the UK but the insurance is widely regarded as over-priced and seldom effective. If you're taking out a loan, make sure you know if the quotes you get include PPI - it's not compulsory so if you don't want it, ask the lender to remove it!
Finance Articles
- Interest Rates Cut to 3% (Economy) - 06/11/2008
- What is My Chance of a Successful PPI Claim? (PPI) - 21/10/2008
- Are we in Recession? (Economy) - 19/10/2008
- What Is Payment Protection Insurance? (PPI) - 19/10/2008
- How Do I Claim Mis-Sold Loan Insurance? (PPI) - 19/10/2008
Contact Details / Terms of Business
You can contact moneycloud.co.uk at Robert Benson Limited, 143A Union Street, Oldham, Greater Manchester. OL1 1TE.
You can read our terms and conditions of business here.
