You Were Fooled

Like a kid discovering the horror of the missing marshmallow in his ice cream, you were fooled.  Your Harvard degree and good looks did not save you from being sold something you did not want and need.  I hate to break it to you but you have just been added to the increasing statistics of mis-sold PPI.

What is PPI?

he got bait-and-switched on the marshmallow – _MG_4172.embed by sean dreilinger, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.  “OMG, I was mis-sold PPI”.

People who take large loans or mortgage wonder at some point whether they will always be able to pay back or not. For times of economical torment and inability to pay, there is a special insurance to cover the repayments called PPI.

PPI stands for Payment Protection Insurance and was made to cover credit card or loan repayments for a year’s duration, usually in case of unemployment. As an example, a debt repayment loan or a home mortgage are large purchases which may require a PPI. It is a good form of insurance to protect the buyer when something happens and renders them unable to pay the loan. When you lose earning through an accident or unemployment, you are covered for the loss. Certain medical conditions are covered, but not alcohol- and drug-related problems or mental illness. Whenever taking out a loan, you can get PPI if it is suitable to you. If you already have a life insurance, sickness benefits through the employment contract or illness insurance policy, then you don’t need the PPI. In case you are self-employed though, you will not be covered. You must be in full-time, permanent employment as basic rule.

What about the mis-sold PPI? Am I in danger of getting such?

Banks and their clients who were sold PPI in the past years have been in full scandal because the bank salesmen abusively sold such policies to clients that would not need them. If the client profile did not apply or if he was not informed of the optional nature of the PPI, then it was a mis-sold case and the client can get their wasted money back. However, this does not happen anymore nowadays, so there are very few chances you would get one such useless policy. It is totally up to you if you want one. Double-check and ask about the PPI when taking a loan, in case the lender wants to add this monthly payment without notifying you.

What if I was already sold PPI and I did not need it?

In case the PPI was already mis-sold to you, you can claim your money back. Contact the responsible company right away – the lender is obliged to give you all necessary details. If you know the exact branch you first contacted when signing for the policy, go back to them. Even if you are still paying off a loan, you can still make a claim. Banks are paying out because millions have complained. If you were never notified as borrower about payment protection, then you could already have it. Check your loan or mortgage and see if it’s included.

Could I still benefit of legitimate PPI?

There may be cases when you actually need the PPI to protect you and your family from going bankrupt. For example, if your job is unstable or work hours could get reduced, then you need to be insured. Also, it is helpful if you become ill or suffer an accident. After all, it was created for consumers’ protection and it was no bad concept to start with. Check the extra amount you are supposed to pay. When the lender refuses to give you the loan unless you take the PPI, you should find some other company. In order to be covered efficiently, it is important to communicate your exact employment situation to the provider company. Thus you make sure that the policy you get is not wrong considering your circumstances.

James had researched on PPI Claims. During his in-depth research on PPI Claims he came across www.ppiclaimco.org.uk and realized that it is a good place to visit for individuals who want to know about PPI Claims.

This article is a guest post.  If you would like to write for Money Soldiers, you may visit the Write for Us menu for details.