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Saturday, January 12, 2013

Claim Back PPI - Having The Things You Deserve

By Mark Richards


Sometimes sold as ASU insurance, PPI or Payment Protection Insurance was packaged with loans and other considerable loans such as cars. The selling claim was that it could take care of your payments when you're unable to deal with your debts caused by accident or losing their job by a redundancy. However, problems inside the coverage meant that the guaranteed payment per month never showed up when unemployment and illness did occur.

As an example, PPI excludes pre-existing and recurring medical conditions. If you were sold PPI and you did have such conditions, this may be determined as a mis-sold policy. In order to claim back PPI, you may need to provide medical records to the Financial Services Authority (FSA) for a full determination.

In making this situation even worse, numerous clients were not even conscious they had purchased PPI. The primary thought to cover those people who had become struggling to work was swiftly forgotten and instead it became nothing but a source of revenue for most dishonest financial institutions. This inevitably led to thousands of people submitting countless lawsuits to claim back PPI insurance fraudulently sold to them by some of the United Kingdom's biggest lenders that include Alliance & Leicester, HBSC and Lloyds.

Aside from the lenders, some of the UK's major credit card companies were also involved; Capital One and Egg being the most egregious culprits. They all were determined by the High Court to have improperly sold PPI over the last ten years to clients who could not have ever applied the insurance policies. Particularly, those clients that were self-employed, retired, unemployed or had a disease that permanently prevented them from functioning again were defrauded. It has been estimated that greater than 27 million policies have been supplied. 40% of those insurance policy owners weren't even aware that they had purchased PPI.

After thousands of people had filed to claim back PPI costs, the FSA levied heavy fines against every agency involved. Each business was fined in excess of 1 Million with Alliance & Leicester being punished for their fraudulent practices at over 7 Million. Because of this, the lenders have established compensation funds specifically for their defrauded customers. Barclays Bank has prepared a fund of over 1 Billion.

In April of 2011, the Competition Commission had acquired adequate information coming from the High Court and began issuing their orders. Alterations they needed in selling PPI now were that information must be given to clients on exactly what it was and what their options would possibly buy it or not. This were to be supplied on paper, individually from the exact purchasing paperwork. Also, PPI could not be sold simultaneously as a credit agreement. A month later, the High Court decided that all lenders needed to review their policies concerning PPI and compensate every customer who was mis-sold the policy. The ruling covered the years of 2005 to 2011 and remains in effect for customers who wish to claim back PPI costs.

Based on the amount of insurance policies sold and for what reasons, you will have a PPI claim worth thousands. It's in your own interest to locate an agency to help you as there are policies you aren't even aware that you bought. Many companies have a no win/no fee assistance that means you won't have to pay them before your suit to claim back PPI has been settled.




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