PPI Reclaim – Know Your Rights and Use Them
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The impossibility of paying the rates on your loan must be messing with your nerves day and night, but, before you despair, make sure you know what your rights are: perhaps you are entitled to a PPI reclaim.
PPI is a payment protection insurance meant to cover a year’s repayments value in case of accidents, unemployment or sickness. While it sounds like an investment worth making, especially since it usually does not exceed 15 to 30% of the loan balance, it is often mis-sold with various types of loans, leading to difficult situations when people pay hundreds of dollars for a cover that may prove worthless. If this is your case, there is a chance you can reclaim what you have paid.
The reason PPI is often mis-sold is because lenders have begun to see it as a means for profit. Most people pay attention to the interest rates, so, in order to gain customers, the lenders have to leave those as low and appealing as possible. On the other hand, although they find them pricy, most borrowers accept the insurance policies associated to their loans.
It is therefore no wonder that the credit counselors are often pushed to persuade their clients into accepting PPI on their loans and things get so far that they actually lie about the policy’s coverage to get the borrower’s signature.
If your PPI was mis-sold, it means you have the right to reclaim it, and no matter what its value is, remember that you worked for the money you paid and there is always something better to invest in than an insurance policy you cannot use.
The PPI reclaim possibility depends mostly on how you applied for the loan. Online applications, for example, decrease the reclaim success rate, due to the fact that the responsibility for understanding the terms falls entirely on you.
You may have a way out if you signed up before July 2007, when most providers used pre-ticked boxes to express the client’s agreement with the PPI.
However, if you contracted the loan in person, at the lender’s office or through one of his employees, the responsibility for your understanding of the terms related to PPI fall on the lender’s representative.
You may have been told that the PPI was mandatory, or persuaded into taking it when you were already covered by another insurance policy, which entitles to you reclaim the PPI.
Consider your situation carefully, remember the details and write the complaint letter. It is better to assume your application will be denied, to avoid disappointment, but remember that no matter what your lender says, you still have a chance to get your money back.
After all, the whole process usually only takes maximum three letters and the value of the corresponding stamps. You might be lucky enough to receive a positive answer to your PPI reclaim from the first letter, but even if it does not happen, you have basically nothing to lose.
This article was written by admin on November 11, 2011