Loans and mortgages are very common ways of obtaining certain goods or services for common people. Once an individual applies for a loan, there are probable chances of defaulting on repayment. These include death, illnesses, termination of job, retirement among other factors. Most lending institutions do not want to take chances in case the worst happens to a client. That is why the idea of PPI came along. In case one is unable to service a loan or mortgage, insurance does that on their behalf. However, many lending institutions took advantage of client’s ignorance, leading to numerous cases of mis sold PPI.
The good news is; the courts acted in favor of clients and allowed those who had mis-sold PPI to make claims. The only setback is that quite a number of victims are not sure if they can actually make claims and win in their bids. Some victims are not even sure they are victims in the first case. So who is liable to make claims?Many people prefer to make transactions online. This applies to loans or other credit agreements. Anyone who signed up for deals using the internet might have it a little tough to prove their case. All the same, anyone who signed up using a provider with pre-ticked boxes had the opportunity to opt out rather than in. This way of lending was brought to an end in 2007. However, those who took a loan before then are eligible to make claims.
- Some clients took loans or mortgage on a face to face basis or on phone. In this case, it was the duty of the salesperson to ensure the client understood all the terms of the policy and let a client know if it was appropriate. This form of mis-sold PPI is common because a number of salespeople’s pay is pegged on the number of clients they are able to bring on board. For this reason, a number of clients were told it was compulsory to take an insurance cover.
- If by the time of taking credit one was retired, unemployed, self employed or had other pre existing conditions and was told to take insurance, this accounts to mis-selling of PPI.
There are ways of laying claims for victims of mis-sold PPI. Here is a step by step guide:
- Before lodging a complaint, ensure it is genuine by checking the policy. After establishing this, it is imperative to phone the company that sold the loan.
- Sometimes the lender may not react after six to eight weeks. This call for further action; writing to an ombudsman. Of course there is often a reaction, though it may take time as there are numerous cases to be handled by the said party.
- While it is true anyone who has cases of mis-sold PPI can lodge complaints and win money back, it is easier to use a claims company to do all the duties on behalf of a claimant. Before making the decision to go to the claims company, one needs to weigh their options carefully.