PPI claim

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Definition of a PPI Claim

Until recently, many consumers were still unaware that they could file a PPI
Many consumers do not even know what it is, let alone that they have the
right to proceed. When a borrower takes out a mortgage, other loan or gets a
new credit card, they are usually offered the option of also purchasing payment
protection insurance. It is supposed to function sort of like an insurance policy for
the loan and in the event that the borrower cannot pay, the insurance will make
payments for them. This coverage is very expensive and there are so many
stipulations that rarely does the insurance really pay any payments. This recently
came to the attention of the Financial Services Authority and they ruled that
these policies are not legitimate. Consumers are now eligible to file a PPI Claim
and have their money returned.
These payment protection plans have been very popular over the last decade and
many consumers have paid inflated amounts of money for this supposed
protection. By filing a PPI Claim many consumers can have this money returned.
These payment protections services are suppose to pay in the event that the
consumer/borrower has extenuating circumstances like becoming ill or losing a
job, and are unable to make their scheduled payments. The insurance is supposed
to kick in and make payments on the loan until the borrower's situation has
returned to a normal state. In reality, the plans do not offer the type of coverage
that they say is available. Therefore, the Financial Services Authority has made it
possible for borrowers to file a PPI Claim and have this money returned.

To simply state that the coverage is expensive is not saying enough. A borrower
can expect to add more than 50 percent to the original loan amount by including
payment protection plans. This is a huge amount especially if you take the
amount of interest being paid into account. The real trouble is in the fact that
policies are very limiting on how and when a consumer can collect these
payments. For the businesses this means that they are charging interest, late fees
and payment protection fees. Because of all the exclusions consumers are rarely
benefited. For homeowners that are already paying more than ten percent of
their income on a home this can add up to some very large amounts of money.
But now, borrowers can file PPI claims if they felt that they were pressured into
purchasing the insurance or were not made aware that they could opt out.