There are many banks and companies selling payment protection insurance and since, the rate differs from one company to another, it is very important that you research well and go through their terms and conditions before signing on that dotted line. Payment protection insurance can be invaluable during times when you are suddenly out of a job for a long period of time due to accident, sickness or unemployment and have nowhere to go but have loads of bills piling up. During such situations, payment protection insurance will help you pay back your financial obligations to certain extent specified in the contract for the period of 12 months to 2 years, depending upon the policy.
But, there are times when the lenders were force selling the PPI to their customers who didn’t even know that they have bought a PPI. Here are some of the ways that the lenders were mis-selling the PPI to their consumers –
- The lenders did not disclose all the PPI clauses to the consumers before selling it to them. Thus, they did not know they would not be able to use the insurance when they need it.
- The lender told the customers that they it was compulsory for them to by the PPI with their loan or credit card.
- The lender also told did not tell the customers that the PPI had 5 term validity even if their loan extended beyond that.
- The lender sold the PPI to those people who were not eligible for the PPI such as people who are unemployed, retired or self employed.
- The lender sold it to the people saying that they highly recommended people to buy the PPI with their loans.
If you feel that you have valid payment protection insurance claims, you can write to your lender immediately before the deadline to get back the money you have lost to them. If you feel that you cannot do it on your own, you can hire a company to do it for you. You can look for various companies online and read the reviews to help you pick the right one for your needs.