Many people have still not looked into recovering Payment Protection Insurance (otherwise known as PPI) because they have not got any information, such as policy documents or paperwork from the loans and the credit cards that they took out.
Payment Protection Insurance (or PPI) came about in the 1980s and the 1990s as a fantastic way for large high-street banks such as Lloyds, Barclays, HSBC and Abbey (now known as Santander) to generate vast profit by adding Payment Protection Insurance onto the facilities that they sold onto customers.
Facilities that could include Payment Protection Insurance are; Loans, Credit Cards, Mortgages, Car Finance, other forms of Hire Purchase (HP) and Store Card facilities. The policies themselves would cover an individual, or couple, from various medical problems and death. Unfortunately, due to the way in which the policies were structured, they were invariably overpriced and due to the way that exclusions were worded in the policies, they did not apply to the vast majority of people concerned. At one point in the 1990s, of all persons claiming against Payment Protection policies, less than 10% of those claims were accepted with money being paid out.
Due to the length of time that has passed, the majority of people do not have paperwork on the facilities with the lenders, if indeed they were ever given paperwork at the point of sale. Therefore if you have had any form of borrowing from any lender, whether they are a high-street bank, or the many other lending institutions that covered Loans, Credit Cards, Mortgages, HP or store card finance, then you must check whether Payment Protection Insurance was applied or not, regardless of how much time has passed. Sometimes, the lenders unfortunately do not have the details – due to the passage of time. The majority of lenders however (even going back as far back as the 1980s and 1990s) do still have records. Sadly, they do not publicise this and it takes a degree of persistence and time to make sure the lenders thoroughly look through their old records to ascertain whether Payment Protection Insurance was indeed included on any facilities that you may have had.
There is a strong likelihood that a time limit will be based on the recovery of Payment Protection Insurance. Therefore it is essential that if you have had any facilities in the past, you now look into this. I have been dealing with disputes on behalf of people for approximately 18 years. From my experience, it is worth making sure that old historic facilities that you have had (particularly Credit Cards) are worth checking, regardless of whether you have any paperwork or if indeed you are aware or not that Payment Protection Insurance was ever included. Our PPI Claims Company works purely on a “No Win No Fee” basis so if there was no Payment Protection Insurance, the facility was too old, or for some reason, then there is no fee to pay.
There are many people who are confused about the recent revelations of the scandals that revolve around payment protection insurance. Many UK banks and financial institutions mis-sold millions of PPI policies and have been ordered to pay compensation to their customers. This is what has led to the increase of PPI claims. Unfortunately the majority of people do not know how to go about the process of claiming their PPI compensation. There are many companies that have also emerged offering to handle PPI claims. Unfortunately some do not even understand how to go about it and will charge clients for no apparent reason.
What is PPI?
Before discussing the claims for PPI, it is important to start by understanding what PPI is. Payment protection insurance is a form of protections that is offered with financial products like mortgages, credit cards as well as loans and any other form of lending. The main aim of this protection is to facilitate the full repayment in the event that the borrower is not able to continue with repayments. The borrower may be incapacitated due to unemployment, sickness, death, accidents and other calamities.
In as much as there are so many genuine PPI companies, there are also so many that have conned many people. Over the past two decades or so, millions of people were victims of mis-sold PPI. This normally occurs when:
The PPI was issued without the consumers consent.
The consumer was given misleading information in order to get PPI.
The terms and conditions were not fully explained before the agreement.
The consumer was exempt from such a policy and much more.
Claiming PPI Yourself
The whole process of making PPI claims is quite complex which can be quite a task for an average consumer. This is why you should let a claims management company handle it for you. However, when choosing a PPI claims company, you should find one that has a good reputation. There are many people that have tried to make claims but failed terribly. Understanding the whole process will take so much of your time and therefore you should allow the experts to handle it for you.
With the average PPI refunds ranging from £2000 to £3000, PPI compensation is a huge boost to the financial well being of most families. Many people consider PPI refunds as a financial windfall and are using it for shopping, catering to the kids’ needs or to finance various educational pursuits. It is however important to focus on spending in areas which will enhance your financial well-being. For example, using PPI refunds to make some investments or finance a new entrepreneurial venture will be a prudent way to reinvest your money. Here a few tips on how you can use your PPI refunds.
Use PPI compensation for offsetting outstanding credit card or loan arrears
If you have some loan arrears with your bank, how far back can you claim PPI, you can enter an arrangement with your bank to clear those loans or credit card arrears with your PPI refund. This will free you or significantly reduce your future loan repayments thus freeing up your future income to be invested elsewhere.
Use PPI refunds to pay your mortgages and insurance premiums
If you have any insurance or mortgage arrears, you can use this windfall to clear your outstanding payments. You can also use the same to clear any outstanding utility bills, rent amongst other recurrent expenditures. The last thing you need is having to grapple with your bills after you have blown all your PPI refund.
Invest in stock
You can use your PPI refund in some long term investments in stock or government bonds. If you already have a portfolio, you can make additional investments with your PPI compensation and wait till they increase in value. You can also use your PPI refunds to create an emergency fund for any eventualities.
Start a business
Many families are now moving towards self employment as the effects of recession and the resulting unemployment and underemployment take effect. You can easily use your PPI refund as a seed capital for setting up a small business venture.
Obtain a certification
If you are in a professional field, you can use the PPI refunds to obtain additional certifications and improve your job prospects in preparation for the upturn in the economy. A new certification will add some value to your skills and enhance your resume as you look forward to new career prospects. You can also pay off some of your student loans with your PPI refunds.
You can also spend your PPI refunds in a manner which boosts the local economy and business prospects. If you have been working too hard this year, you can use your PPI refund on a holiday or some excursion across the UK. You can also shop in your neighborhood to boost the local business. With so many families facing harsh financial circumstances, you can use your PPI to offer your family and friends low interest loans for their autumn/winter shopping and shield them from the exploitative tendencies of pay day lenders.
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