Banks in the UK are being inundated with complaints from borrowers asking for a PPI reclaim on their Payment Protection Insurance Policies (PPI). Payment protection insurance is an insurance plan that is usually added on when someone applies for a credit card or for a loan, but the problem is that many people do not know how to use it or are not aware at all that they have it. Once they do need the PPI plan, they end up not being able to make the proper claim simply because they do not know the proper way to make it.
When it comes to these situations, the most that one can do is to write a reclaim letter to the company. While a letter may not sound like a very active course of action, in a case like this it is the most that you can do. Once your reclaim letter does not work, then you can take other actions such as hire a company to make a claim letter for you. These are companies that specialize in getting people the help that they need in order to make the proper PPI claims and get their money, or if they want, to back out of the plan over all. This is the best way to be able to go ahead and try to get your money without having it all out with the company that gave you the plan in the first place.
There are many reasons to make use of these PPI claim letters. First, it if you are fighting for your right to what is yours. It is you making sure that you are not paying premiums on a monthly basis without your knowledge, and this is you making sure that if you do end up paying for the insurance, that you get to use it when the situation calls for it. If you wish to learn more as to how to properly execute sending a reclaim letter to the PPI or loan company, you can always seek the guidance of financial experts.
Benefits of Reclaiming PPI
The greatest benefit of having a payment protection insurance or PPI is peace-of-mind. See, bankruptcy is not uncommon anymore. The worst thing that can happen to you is to become broke while having many debts to pay. A payment protection insurance lightens the burden of those who are caught in that situation. It serves as a safeguard for those who cannot go to work because of sickness, accident, or any unavoidable circumstances. The payment protection insurance can be claimed from any legitimate insurance provider. It applies to people who are unemployed and cannot pay mortgage, credit card, hospital bills, and other monthly expenses. With the payment protection insurance, the company will shoulder the expenses until such time that the policyholder is able to pay the bills independently. Policyholders of a payment protection insurance can also have the insurance cover remaining payments in case of death. Family members of the policy holder also enjoy the benefits of this insurance.
Most financial lenders sell PPI but there have been many instances of mis sold ppi in the market. In 2009, a BBC report described the ruling out of lenders by the Financial Services Authority (FSA) due to lousy sales tactics of this insurance policy. Some lenders overcharged their clients by 1.4 billion. Policyholders can demand for a refund if their lender offered them poor advice and were pressured to secure a PPI under unclear terms. See, some lenders do not explain the full terms to their clients and as a result, clients are misinformed of the real cost of the policy. One should never find himself or herself in that position but if this happens, it is best to seek the aid and services of a claims company. A PPI claims company will manage the payment protection insurance process and when the claim pushes through, the policy is canceled.