PPI Edinburgh reclaims mis-sold Payment Protection Insurance (PPI) for customers throughout Scotland.
Payment Protection Insurance – Back to Basics!
Payment protection insurance (PPI) seems to make it in to the news on a regular basis. When you know the details, it is not hard to understand why but, as a result of the way PPI was sold to customers – and the high level of trust customers have in the banks and lenders they have dealt with for long periods of time – many people still think that the mis-selling of PPI affected other people but not them.
So, let us go right back to basics and check that you are not a consumer thinking that you are not affected...
What is PPI?
Payment protection insurance was (and still is available) to cover your debt repayments. You can buy an over-arching policy that covers all your debts but the PPI we are talking about was sold by banks and lenders to cover their specific product.
How do I Know I Have PPI?
It will be detailed on your statements or original agreement documentation for the loan, credit card, mortgage etc. The premiums will be a monthly amount. On loans this may have been a set premium each month but with credit cards, it would have been calculated as a % of the total amount outstanding on the account.
One payment may not seem to add a significant amount but if you have had the credit card for 5 years and the amount outstanding on a monthly basis was close to the account limit, the amount you paid the financial company would soon begin to total an amazing amount of money – money you were paying for a product that may not have paid out should you have made a claim!
The Problem with PPI
- Mis-selling – many consumers such as people self-employed, retired people and students were sold a policy they would not have been able to make a claim on
- PPI in most cases, was a short term insurance – it did not run for the term of the product, often finishing before it e.g. PPI lasts 5 years, loan taken out over 7 years
- Expensive – adding PPI to a financial product added significant debt and it has since been proven, the amount you paid was disproportionate to the ‘cover’ that was offered
- Limited pay out time too – unlike other insurances, if you were successful in making a claim on your PPI policy, you would be disappointed in the amount of time it made payments – usually only up to 12 months
- Low cover levels – the policy only paid the minimum amount each month and so if you paid more off your credit card each month, the policy would not replicate this. In other words, it would not significantly reduce your debt at a time you needed it most.
If you see payment protection insurance on your accounts, then the likelihood is you have been mis-sold the policy. Why not call PPI Edinburgh, for impartial advice on how to make a claim with them!
Contact PPI Edinburgh today to start your PPI Claim.