PPI Claims – Why Are They Happening?
The fact that there have been so many PPI claims over the past few years has meant that the PPI industry has been landed with a big bill. But just exactly what is the justification for people claiming back money against PPI policies?
Let’s start by examining the product itself. Payment Protection Insurance, as its name might suggest, is designed to protect those who take it out. It is essentially a type of insurance for consumers taking out mortgages, credit cards, hire purchase agreements, loans and other financial products. The concept of PPI is that the consumer is protected if circumstances that are not their fault, (such as a cut in income caused by redundancy or illness) mean they find themselves unable to meet their monthly repayments. This, surely, sounds like a wonderful concept? And in theory, it really is.
The controversy that has plagued the PPI industry in recent years isn’t directly related to the product itself, but the way in which the product has been sold to consumers. It has emerged in recent years that a large number of people have been told by lenders or providers that applying for PPI would increase their chances of getting a loan or mortgages. In other cases, consumers have reported being led to believe, wrongly, that PPI is compulsory.
These are only the tip of the iceberg. There are other situations where people have been sold policies that they would realistically never have been able to make a successful claim on in the first place, for example those who were unemployed, retired or self-employed when applying for the policy. There are also people who have been sold the policies without even knowing it and others not given time to read the terms surrounding the PPI. Unfortunately, there are plenty of other examples too.
Financial services and product providers do have a responsibility to the consumer, to ensure he or she is completely aware of all the terms surrounding the product and what it will cost. In this instance, many lenders failed and this is why so many are making PPI claims.
Read more about PPI Claims and find out if you could claim today!