Monday, February 27, 2012

Loan Recipients Could Be Eligible For A PPI Reclaims

By David Baddeley

If you believe that you have paid for a product you cannot use or did not want, you may be eligible for PPI reclaims. This loan repayment program, payment protection insurance, is not right for everyone. Investigations have shown that it may have been added to the cost of loans without the customer knowledge.

Problems surrounding PPI have surfaced and are being investigated by several government and public agencies. The Financial Services Authority and Competition Commission are just two of them. The accusations include unethical practices that sell products to unaware customers, and products that have no value to them.

Another suggestion that has come from these investigations is that PPI not be sold at the same time that a loan is obtained by a consumer. This would go far in reducing the unethical practices that tricks consumers into purchasing a product they do not want, and in many cases, cannot use. When comparing the commissions on the insurance policy to the amount made by simply transacting a loan, the agents can be very tempted to act in a less then ethical manner.

Some people may be eligible to reclaim the money charged for a PPI, but do not even realize they have the insurance. Credit card billings will show the charges if it is ongoing, but if the amount has been included in a loan, it may not be obvious. Contact your lender and request to know what you are paying for. They are obligated to give you information relating to your loan.

There are several instances that are blatantly unethical. Selling a policy that protects against unemployment to the unemployed means they cannot make use of it. In the same vein, people who have a pre-existing medical condition cannot use it, so it has no value to them. When taking out a loan, make sure to read all of the fine print so that you know what you are buying. Ask questions about anything that you do not fully understand.

If the amount of the PPI refund is only partial, it may be possible to revisit the issue and get a fair refund. Others, who have canceled the insurance but were forced to pay higher interest rates as a result are eligible for a refund. Do your research and see what options might be available to you for a refund.

If a person purchases a product that they do not understand or if they were not away it was part of the package, it is actionable. When signing a contract, you must understand all of the terminology and charges associated with it. There are very strict regulations for financial institutions, and they are regularly audited for compliance. If they practice unethical or illegal sales methods, they are liable for the consequences.

Should you file PPI reclaims and not receive what you believe you are entitled to, contact the Financial Ombudsman Service for more help. Keep all of your facts together, including conversations, documentation and details about all interactions. You will be required to present all of this information to the Ombudsman Service.

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