The Great PPI Scam

Payment Protection Insurance is supposed to help consumers feel secure that if something unplanned happens they are covered for repaying their debts, but more and more people are feeling like it is one big con. It has been sold to people who are unaware, borrowers who cant afford it and even people who want it but don’t know they are ineligible.

PPI is cunningly attached to any loan or credit by most banks and in some cases, employees are forced to sell useless policies in order to maintain their jobs. The idea of PPI is great for borrowers, mostly in the recent economic hard times, when unemployment has reached a record high, it should mean that a few months without income doesn’t mean becoming homeless because of loan repayments. Realistically there have been almost no cases where PPI has benefited a borrower.

Thankfully banks and lenders who have mis-sold PPI can be held accountable by the everyday consumer. There are many companies who focus on financial law and plenty of them specialise in reclaiming PPI payments.

The majority of consumers don’t fully understand the variety of situations in which being sold PPI is illegal, for example; if you were unemployed, self-employed or simply over 65, your PPI payments were invalid and you can recover all the money. If you were not explained the terms of payment, interest and cancellation and if you were informed you could only purchase PPI from your lender, ask for it back!

Although claiming back your PPI is your own responsibility, the Financial Services Authority and the Competition Commission have taken a stance against the dodgy tactics of the industry. They are even slapping fines on any organisation deemed to have broken laws with PPI selling.

Companies are now obliged to accurately sell PPI to customers guaranteeing they are not overpriced, customers can chose to opt out at any time and they are completely covered after a 2009 watchdog ruling.

If you feel you have a case to Claim PPI, then Dons LLP can help you to Reclaim PPI.

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