The payment protection insurance or PPI is a means of protecting one's loans. It is a widely used type of insurance since it entitle the consumers to make sure that the loans they have given be repayed in case unforseen circumstances occurred. Such as the borrower becomes ill, laid off a job, or dies. The borrower can also be benefited since this protect them from payment liability. Paying a loan while suffering from a hard-blow such as sickness is unbearable. But PPI helps them have accessible terms of payment.
The wonderful thing about payment protection insurance is that it is generally applicable to any loan-based application, whether it be car loan, mortgage, or credit cards. Due to these benefits, many companies offer PPI alongside their loans. Sometimes, though there are mis-sold PPIs. How is this possible?
One factor has something to do with the company that did the lending. Different companies sell PPI to people who are not fit to have such insurance, such as those who are self-employed. This problem can only be detected once it is time to use the insurance. In this case, PPI becomes a burden instead of a help, because the insurance you relied upon cannot actually help you.
Mis-sold PPIs can also result from misunderstandings between parties. Some customers may purchase PPI without knowing it. Still, at other times, the company may wrongly imply that PPI is a requirement in acquiring a certain loan. They may pressure clients into purchasing PPI even if the clients would not want one. Finally, it may be that payment protection insurance is just not explained well. Consumers aren't aware that the PPI is optional or can be purchased at a lower rate in another place.
PPIs that are not explained well can create a lot of problems. This is arguably the most prevalent cause of mis-sold PPI. Whether it be employment or health issues, the company must be expected to make the client understand the policies and terms of eligibility well. It is also their duty to let the clients know that the insurance can be purchased elsewhere at a lower price. Age also plays a factor in eligibility, though it is not often mentioned. PPI policies do have age restrictions. PPI should not be sold to individuals that are under 18 or are over 65; if you are in one of those age ranges and have purchased PPI, then it has been mis-sold.
Clear Law Solicitors is a great help in this ordeal. They can claim back mis-sold PPI and handle the legal process for the client as well.
The wonderful thing about payment protection insurance is that it is generally applicable to any loan-based application, whether it be car loan, mortgage, or credit cards. Due to these benefits, many companies offer PPI alongside their loans. Sometimes, though there are mis-sold PPIs. How is this possible?
One factor has something to do with the company that did the lending. Different companies sell PPI to people who are not fit to have such insurance, such as those who are self-employed. This problem can only be detected once it is time to use the insurance. In this case, PPI becomes a burden instead of a help, because the insurance you relied upon cannot actually help you.
Mis-sold PPIs can also result from misunderstandings between parties. Some customers may purchase PPI without knowing it. Still, at other times, the company may wrongly imply that PPI is a requirement in acquiring a certain loan. They may pressure clients into purchasing PPI even if the clients would not want one. Finally, it may be that payment protection insurance is just not explained well. Consumers aren't aware that the PPI is optional or can be purchased at a lower rate in another place.
PPIs that are not explained well can create a lot of problems. This is arguably the most prevalent cause of mis-sold PPI. Whether it be employment or health issues, the company must be expected to make the client understand the policies and terms of eligibility well. It is also their duty to let the clients know that the insurance can be purchased elsewhere at a lower price. Age also plays a factor in eligibility, though it is not often mentioned. PPI policies do have age restrictions. PPI should not be sold to individuals that are under 18 or are over 65; if you are in one of those age ranges and have purchased PPI, then it has been mis-sold.
Clear Law Solicitors is a great help in this ordeal. They can claim back mis-sold PPI and handle the legal process for the client as well.
About the Author:
Have you found yourself with a ppi claim, but you're not sure how to find the right attorney? Check out Clear Law Solicitors; they work on a no-win no-fee basis.
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