Payment Protection Insurance is commonly referred to as PPI. It is an insurance policy which most of the lenders make use of when roping in new clients who want to get a credit card or a loan.
Many of the borrowers are not aware of the legalities involved in buying a policy. PPI policies are too costly and it would sum up to a huge amount and the lender for sure stands to make atleast 90% of the profit. The borrower gets to know about the policy only in the end and then curses himself for having gone in for such a policy which does not suit him at all.
Just to give an example; a businessman can never get to claim amount on the policy, though many a times he is totally unaware of the legal issues. Many lenders have blatantly misled borrowers and taken them for a roller coaster ride. They have taken undue advantage of the fact that these borrowers would never come back to claim the amount legally due to them. Some genuine lenders have been truthful and repaid the money back. The lenders have become cautious about their dealings since they are aware that their procedures are under severe scrutiny and it is high time they mend their ways.
The Ministry of Law and Justice has appointed many legal advisors to guide borrowers on the legalities of borrowing money. They advice consumers on staying alert about lenders who mislead consumers and sell PPI products. If you have been victim to such injustice, you need to immediately file a claim against the vendor and get in touch with a legal advisor. Many claim companies charge the borrower their fees, only after the borrower has been able to recover his due from the lender.
The payment is usually 30% of the recovered amount and these charges are justifiable as he has spent his time and efforts. These legal advisors also know the system very well and since they are well knowledgeable on the legalities, it is easier for them to get back your money.
It has been estimated that lenders are making close to 900% from PPI. They are earning about £ 1200 from something whose actual cost is only £20. Many consumers have been lured and made to believe that if they do not purchase the PPI; their loan application would get rejected. In this manner, lenders and financial service companies have played a dirty trick with the consumers and instead of making their situation better, it has actually become worse.
Many consumers who have suffered the brunt are now trying out ways to get compensation from those lenders and other financial service associations who have duped them. The legal advisors appointed look into their case and help them get back their money. The most commonly adopted method is to claim the amount by taking the services of a solicitor. If you do not win the case, you do not pay his fees. The legal expert offers the borrower with a comprehensive approach and educates him of the legalities of the case, litigation techniques and also a clear-cut understanding of his rights as per Consumer Credit Act.