Reclaim Payment Protection Insurance Now

PPI claims have strong backup from the law. If you think you have been mis-sold PPI, you have every right to reclaim it. Remember, it possible for you to reclaim PPI at no cost to yourself. Read on to find out how.

Payment Protection Insurance is an insurance product that is able to cover an outstanding debt. It is a safety net which will be able to repay a debt if in case the debtor will be unable to fulfill his financial obligations due to accident, sickness, disability, employment or death.

PPI can be called a variety of names, which may be dependent on the type of loan you take. PPI can sometimes be called:

• Personal Loan Protection
• Accident Sickness & Unemployment Protection
• Credit Protection Insurance

• Loan Repayment Insurance

Do You Really Need PPI?

The need for PPI is a case-to-case basis. If you are currently employed, you may already have some form of income protection in cases of illness or disability.

If you are taking out a large loan or mortgage, it might be wise to alredy have, at the very least, 6 months worth of savings. Just so you have a safety net. On the other hand, if you are taking out a smaller loan, you can take an insurance policy as a form of protection, before even thinking about an expensive PPI policy.

So assess your situation before taking a PPI together with your loan. Check your needs, your lifestyle, your employment status, savings and other needs which would affect you, your pocket and your outstanding loan in the long run.

The purpose of PPI, by and of itself, is not really the problem. It is the practices surrounding PPI that makes it a controversial product.

PPI is deemed to be overpriced.

The claims ratio for PPI products is around 20% of the premium. For example, for every pound paid in as a premium, the PPI schemes were paying out just twenty pence in claims. This is documented in the report UK banks: PPI – Time for change, by Credit Suisse First Boston, a well-known investment bank.

The protection is only partial.

The Financial Services Authority (FSA) reports that PPI claims have a high rate of rejection. One out of six PPI claims are rejected by insurers. This is because insurance firms "were not providing the customer with balanced information on the exclusions as well as the benefits". Those who have chronic illnesses or mental health problems also have difficulties with their claims. Others were unable to claim at all because of unreasonable requirements to provide medical evidence.

PPI products are most often mis-sold!

More often than not, debtors found themselves taking on PPI together with their loan due to high-pressure sales tactics pushed by lenders. Usually, debtors are told that taking on PPI will increase the chances of having their loans approved. Sometimes, debtors are told that taking on PPI is a requirement! There are even times that PPI is already automatically added to the loan, at rare times without the debtors' knowledge.

These unfair practices are what enables debtors to reclaim PPI!