Is your bank hounding you for mortgage payments that seem to be much more than you anticipated for your loan? The very first thing that you need to understand is that while it can truly be a pain, you are definitely not the only one going through this. There is a chance for you to turn the tables and ask your bank to refund some of your loan payments that you have been paying over the years.
Banks have been widely selling an add-on cover with its various kinds of loan facilities like home mortgages, credit cards or a car loan. This cover is called PPI or Payment Protection Policy. It can also be interchangeably used with other terms like ASU (accident, sickness and unemployment) insurance, loan protection, payment cover, account cover, credit insurance or loan repayment insurance.
This insurance provides the borrower a cover for situations where he or she is unable to reply the loan owing to his or her death, disability, illness, or lack of income earning capacity.
Since this add-on to the loan, hikes up the profits for the banks and the lending institutions, many a times the borrowers are wrongfully coerced to sign up for them without complete knowledge or their understanding of whether they actually need the cover.
Hence, many UK citizens have been ripped off by thousands of dollars of extra payment towards their loan.
If you suspect your have been mis sold a PPI or Payment Protection Policy along with your loan, you can either claim it on your own or take help from Claim management companies. Some of these companies have an online presence and provide information and tips to claimants about their rights and the procedure to file a claim for refund of the PPI. Once such website where you can log your complaint regarding mis sell of PPI or Payment Protection Policy is ppi claims 4 you .co.uk.
If you choose to avail their services, there is no upfront fee charged to you. The arrangement that they offer is of no-win-no-fee. This means that the company only charges you a percentage of the claim if you get the refund that is due to you. The company not only fights for your extra payment towards the premium but also the interest due on the premium payments.
You can register your claim online and the company gives you a feedback whether your claim is eligible
In these financial times, fighting for every penny is worth the effort. Companies like these help you fight for what is rightfully yours. You also have a choice of filling a claim on your own. You could do that by writing your complaint to the financial institution or the lender first. If you do not get a satisfied response within a given defined period, you can further raise the issue to the Financial Ombudsman Service who shall then give a final response to your claim.
As per certain known statistical sources, it is known that the average payout for a PPI claim is estimated to be £2500. It is definitely not an insignificant amount that you can choose to ignore. Since the process for claim is an easy and straightforward one, borrowers should not shy away from claiming the refund.
Borrowers are encouraged to claim a refund for their PPI not just to get their money back but also to teach a lesson to lenders who try and get away with such malpractices that deepen their pockets at the cost of the customer’s hard-earned money. It important that as customers we raise our voice against such rip-offs and force the lenders to adopt customer friendly practices and polices.