21:43 08 November 2012
PPI or Payment Protection Insurance is designed to protect the borrower from defaulting loan payments should he or he get sick or become unemployed.
In such cases, an insurance company will cover the monthly payments for a maximum of 24 months, according to reports. Although PPI looks good on paper, the manner in which it was sold to thousands of borrowers is now a huge issue.
Several banks and financial institutions have made billions of pounds by selling PPI to unsuspecting borrowers for the last two decades.
In the majority of cases, it has been suggested that borrowers were not fully aware that they were paying for the protection; most of these people were allegedly told that PPI is a must in order to secure credit from the bank.
Because of this, borrowers who think they were mis-sold PPI are allowed to make a claim.
The process for making a claim for Payment Protection Insurance is proving to not be difficult; an individual can begin by writing a letter to the firm that sold the policy.
Should borrowers need help, they are encouraged to write to the Financial Service Compensation Firm. Customers have the option to use either an individual or a company to make the filing of their claim, or they can do it independently to avoid any service fees.
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