Assuming you have followed the news across the last year or so you should be aware of the world wide recession and how it has hampered a great deal of the population across the globe. In the world of personal finance we have seen many changes, especially when talking about loans and mortgages.
You may also have read about people who are making a PPI claim, and naturally wondered what it means. PPI – otherwise known as payment protection insurance – is a troublesome part of some credit arrangements that is intended to help the borrower in the event that they find themselves out of work and unable to meet the agreed repayments.
Every payment protection policy is an insurance agreement which is paid for in monthly instalments. Nevertheless, a few years ago the authorities that control the personal finance sector noted many complaints from peoplecustomers who suspected they might have been mis sold PPI policies, and a thorough investigation was ordered.
Those that undertook the investigation discovered that there had been many cases of mis-selling of PPI policies, among them plenty which had been supplied to people to whom they were not applicable and some in which people were not told that they had purchased and were responsible for such a policy.
As a result of the findings of the inquiry several financial institutions – many highly regarded high street brands – were subjected to substantial fines, and the laws covering the provision of PPI policies were totally revised. In addition, some of the consumers affected sought professional help to pursue PPI claims for compensation, and lots of people are realising that they are also due some recompense for mis-sold polices.
As the new rules were introduced they stipulated that there would be revisions to the way in which PPI policies would be sold, and it is subsequently not allowed to sell a borrower a policy when granting the loan or mortgage. It is also not permitted to offer the buyer a PPI policy for several days after granting the loan, thus allowing the consumer time to look for the best deal.
One of the reasons for introducing the revised regulations stems from the fact that the investigation discovered that a number of consumers had been of the belief that they had no option but to take a branded PPI policy offered by the lender, a point that is at the centre of many a PPI claim as it has long been the individuals right to go elsewhere for the most cost effective option.
The world of personal finance and, specifically, PPI is now a far safer place for the consumer as a result of the fresh regulations, and if you consider that you may be elgible for seeking compensation we strongly advise you seek expert help in what is a complex part of law.
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