New To PPI? Get The Lowdown
Assuming you have read the news throughout the last 18 monhts you undoubterdly will understand the world wide economic downturn and how it has affected individuals across the globe. In the area of personal finance a number of changes, especially when it comes to loans and mortgages.
You may also have read about people who are seeking PPI claims and as a result wondered the details. PPI – an abbreviation of payment protection insurance – is a hotly contested part of a good proportion of credit arrangements that is meant to help the individual concerned in the event that they lose their ability to work and unable to meet the agreed repayments.
A payment protection policy is an insurance policy that is paid for in monthly instalments. But, in recent years the authorities who oversee the personal finance sector tok on board several complaints from peoplecustomers who suspected they could have been mis-sold PPI policies, and an investigation was ordered.
Those that made the investigation discovered that there were numerous cases of mis-selling of PPI policies, including plenty that had been provided to people for whom they were unenforceable and some in which customers did not know that they had taken out and were paying for such a policy.
As a result of the outcome of the inquiry a number of financial institutions – a number of which were highly regarded companies – were given heavy fines, and the laws covering the provision of PPI policies were comprehensively amended. In addition, some of the borrowers affected took on board professional help to seek a PPI reclaim for their payments, and many more are finding that they could be due some recompense for mis-sold PPI.
As the new guidelines were written they stipulated that there would be changes to the manner in which PPI policies would be sold, and it is now against the rules to sell a borrower a policy at the point of sale of the loan or mortgage. It is also in contravention of the regulations to offer the buyer a PPI policy for a set number of days after granting the loan, in order to allow the consumer time to look for the best deal.
One of the reasons for introducing these new regulations was because the investigation confirmed that a number of people had been led to believe that they had to take a branded PPI policy offered by the lender, somethinh that is at the centre of many PPI claim, as it has long been the customers right to look elsewhere for the most cost effective option.
The world of personal finance and, specifically, PPI is now a much safer place for the consumer following the introduction of the fresh regulations, and should you believe that you have a case for seeking compensation we strongly advise you seek the help of a solicitor in what is a complex legal sector.
Related posts:
- New To Borrowing? Get The Lowdown On PPI
- PPI Claims Just Keep On Coming
- PPI Compensation Is Available If You’re Finances Are Low
- PPI Claims Should Make Lenders Think Twice
- Understand Your Personal Finances
Tags: mis-sold ppi, ppi claim, ppi claims, ppi compensation, ppi refund