Many cases of payment protection insurance are still pending because of its immense volume. Back when it was new, it promised a financially secure future for its policy holders and the beneficiaries. It was created in response to the unstable economic crisis and overwhelmingly high unemployment rate. Payment protection insurance is supposed to safeguard people when they suddenly become unemployed due to an accident or sickness that will leave them incapacitated. If the policy holder cannot work after a month, the policy will pay out and cover for the expenses of the policy holder. These expenses include credit card payments, mortgage loans, utility bills, and even grocery bills. Payment protection insurance can even come in other forms. There’s the mortgage payment protection insurance that’s specifically meant for mortgage payments. There’s the credit card payment protection insurance that only pays for credit card payments. The average period of the coverage spans from 12-24 months.
What was supposed to be a safety blanket in times of need turned out to be big hassle for those who bought a loan protection insurance policy. Many banks are still facing the wrath of displeased customers because of mis-sold payment protection insurance policies. According to these customers, details about these policies were either omitted or altered. Most of these victims were offered policies by their banks or mortgage creditors. These banks and mortgage lenders get a commission whenever they sell payment protection insurance. Some of their agents were compelled to misinform their clients of some details to get them to buy a policy. They give them lousy investment advice, even if the clients don’t need the policy.
This mis-selling has paved the way for loan protection claims. Individuals who feel that they were mis-led into taking out one of these insurance plans can now claim their money back. This can be achieved by formulating a letter of complaint and ensuring that you are aware of how and why PPI was mis-sold to you. You then need to ensure that your lender acknowledges your complaint and carries out a full investigation into the sale of the policy to you. If they don’t acknowledge the claim then you may have to pursue the matter through the small claims court or the Financial Ombudsman Service.
A popular option is to refer the matter to a claims company. They are used to dealing with these matters and have a lot of clout when it comes to handling mis sold loans. They will usually charge a fee and you should find one that only charges a fee upon successful completion of the claim. The most important thing is to act quickly and decisively while the window of opportunity is there for you to claim your money back.