By Paaul Smythe
Despite its benefits, to those genuinely worried that they might lose their jobs or might fall sick, PPI has become famous for its huge number of mis sells.
With the FSA claiming that there could be around 550,000 complaints to be received for this year alone. The reclaim costs could anywhere be around � 2.7 billion. FSA has now issued new guidelines that include educating staff selling PPI, identifying bad practices by firms that sell PPI, and even introduction of a handbook that analyses past complaints.
There are two types of PPI- monthly premiums and single premiums. Monthly premiums are generally added to credit cards. These can be cancelled, increased or decreased any time. Refunds for the monthly premiums are minimal. If you have not been informed that the PPI has been added to your account you are eligible to reclaim PPI, claiming mis sell.
Single premiums are usually added to mortgage loans, where PPI premiums calculated for 36 or 60 months are calculated and added to the main loan. This cannot be cancelled as it is a part of the main loan and you end up paying up interest on the PPI at the same rate as on the main loan.
No other insurance claim has such a high percentage of rejections.
The FSA has reported that the Financial Ombudsman Services has received more than 100,000 complaints about PPI, and almost four out of five complaints are resolved in favor of the consumer. Apart from the general reclaim, you could also reclaim PPI, claiming mis sell. You are eligible for a mis sell if:
� You didn’t ask for a PPI, but was added to your account
� You were forced, to include a PPI, where the lender informed you that a PPI would speed up the process of approval. In fact there are a few banks that refuse a quote without a PPI loan.
� You were not made aware of other cheaper PPI options available in the market.
� You were not informed about situations where, the claims can be rejected.
� You had opted for a PPI, thinking you are going for a long term loan, but the bank has sold you a PPI, that covers a short term loan, even without informing you.
� If you had reached the upper age limit (most insurance policies have an upper age limit of 65-70) at the time of opting for PPI
There are many other reasons for which cover a mis sell. If you think you are an eligible candidate to claim for a mis sell, you could check out the many websites that have plenty of information on who can and who cannot claim for a reclaim either with or without a mis sell.
The author of this article has immense knowledge in PPI Claims and is in close association with Real Claims. Real Claims is one of the leading companies in the UK specializing in Payment Protection Insurance reclaims. Unlike other PPI Claim companies Real Claims [http://www.realclaims.co.uk/] will take on larger PPI claims going through a litigation process allowing them to potentially claim more money for the client.