Have You Been Mis sold PPI Policies?

Should you have followed the news across the last year or so you should be aware of the world wide economic downturn and how it has hampered individuals across the world. In the market of personal finance there have been plenty changes, especially when it comes to loans and mortgages.

The chances are that, also, you have read about the numbers of people who are seeking a PPI claim, and therefore wondered the details. PPI – an abbreviation of payment protection insurance – is a hotly contested part of many credit arrangements that is designed to help the borrower in the event that they find themselves out of work and no longer able to meet the agreed repayments.

A payment protection policy is a simple insurance agreement that is paid for by monthly instalments. Nevertheless, a few years ago the authorities that regulate the personal finance market received several complaints from peoplecustomers who suspected they might have been mis sold PPI policies, and an in depth investigation was ordered.

The people who undertook the investigation discovered that there had been a number of instances of mis-selling of PPI policies, among them many which had been sold to people for whom they were unenforceable and more in which individuals were not told that they had purchased and were responsible for such a policy.

Following the findings of the investigation a number of financial institutions – some highly regarded companies – were handed heavy fines, and the laws surrounding the provision of PPI policies were totally revised. In addition, plenty of the borrowers concerned took on board professional help to pursue PPI claims for recompense, and a number of people are realising that they are also due some recompense for mis-sold PPI.

As the new guidelines were introduced they stipulated that there would be changes to the method in which PPI policies could be sold, and it is subsequently illegal to sell a borrower a policy when agreeing the loan or mortgage. It is also not permitted to offer the buyer a PPI policy for seven days after granting the loan, in order to allow the consumer time to look for the best policy.

One of the reasons for introducing the revised regulations was because the investigation found that a number of people had been led to believe that they had to take a branded PPI policy offered by the lender, somethinh that is at the forefront of many a PPI claim as it has always been the customers right to go elsewhere for the best deal.

The personal finance world and, specifically, PPI is now a far safer place for the consumer thanks to the new rules, and if you believe that you have a case for seeking compensation we strongly advise you seek the help of a solicitor in what can be a confusing area of the law.