The future is always uncertain. Hence when people take out loans, debts or mortgages, they also pay for payment protection insurance cover to protect them incase they lose their source of income before they repay the loans. This cover is for people in employment. Students, pensioners and self employed people are not eligible for the service. However, financial institutions like banks and other companies mis-sell this cover without informing their clients that they are paying for it.
A payment protection insurance refund can also be claimed when one finds that their policy have a fault. Unfortunately a lot of people get discouraged to file for claims because of the legal hassles that are involved. But currently, there are easy ways into which one can claim and get their full compensations. The following steps can easily help someone who needs to make their payment protection insurance claims.
Apply for an assessment and evaluation
After settling on the attorney or agency then you can apply for an audit. The significance of this step is to make sure that during the last steps the declaration was thoroughly scrutinized. There are two ways by which you can go about this. You can either request the expert to evaluate your claim or you can fill in all the legal documents and get it assessed.
Get the claim assessed and estimated
The moment you apply for an evaluation, the professionals will evaluate it. They will make sure all the requirements that will make you qualified for a refund are authenticated. They will examine the whole case of the mis sold payment protection insurance and any other unreasonable charges that may have been included. It is also very important to sign up with a competent professional lawyer who can fight your case efficiently, because he can assess and legalize the claim and also find out the highest amount you can be compensated.
Receive your refund and reclaim
After finishing up with the assessment, the next step take is just to wait for the refund. The time it will take get your payment will be determined by the terms and conditions of your cover which might be a bit long which requires patience. Mis-selling of a PPI is a long process which discourages a lot making them loose a lot of money. Also a majority of people have no idea that if they are victims of mis-sold PPI they can file and get compensated. With this knowledge if you are a victim you should file for a payment protections insurance claim and get your refund.
A home insurance is taken in order to protect one against the loss they may incur in case of a disaster or damage in their homes. Some of the risks that may be insured against include earthquakes, fire, or hurricanes. However, even with these covers, not all claims are compensated. Sometimes, the home insurance company may deny the policyholder their claim due to any of the following reasons.
Whenever a homeowner takes up a policy, it’s his responsibility to take care of his home to avoid any damages that may occur through negligence. A home insurance company can only compensate one for damages that may occur accidentally. For example if there is a fire in your home caused by an electrical fault, it can be taken as accidental and you can be compensated. However, if the fire is caused by gas leakage, then it can be taken as negligence and the insurance company may deny you the claim.
When applying for an insurance policy, one is required to present the truthful facts. If damage occurs and the facts you gave differ from what is given at the time of loss, then your claim will be declined. Hence, it is very important for the applicant to give the real facts when applying for a cover.
A policyholder has the full responsibility of paying premiums and on time. Whenever a policyholder does not pay either on time or totally fails to pay and the policy lapses, then they don’t stand a chance to be compensated when there is damage. No matter how long you’ve had the policy, if there is damage and the policy is lapsed, the company can deny your claim.
Not all risks are covered by every insurance company. For example, damages caused by terrorist attacks may not be covered by home insurance companies. However, insurance agents have the mandate to let you know what their company covers and what risk they don’t cover. Therefore when taking the cover, you are aware and also they can give you an alternative on how you can cover what they can’t, for you to be fully protected. Floods, for example, aren’t covered by home insurance and cannot be compensated.
Professional use of damaged home
When one runs a business from home, they are obligated to take up the appropriate commercial insurance cover no matter how small the business is. Your damaged property can only be compensated if in your home insurance policy, there are provisions for endorsements that cover all your assets. Otherwise, the claim will be declined.
It is therefore important to know all that your home insurance policy covers and make all the necessary arrangements to cover your specific needs for you to be fully covered. You can also decide to take alternative covers for what is not covered in home insurance to avoid having your claims declined. An insurance agent can assist you in doing this efficiently.
PPI mortgage can also be referred to as mortgage PPI or MPPI. MPPI covers mortgage payments for the beneficiary is designed to make payments on behalf of the beneficiary in difficult situations that may disallow mortgage payments. These situations include loss of income due to illness, loss of employment, or death. The payments are made in exchange of monthly premiums of an agreed amount of money.
How PPI mortgage works
MPPI is taken out on the onset of a mortgage. There are premiums payable at the end of each month and in most cases included as part of the mortgage payment. You can dictate the amount of premium you want to pay. However, it is important to note that large amounts of premiums guarantee a higher mortgage payment in claims. The PPI can come to effect immediately after loss of ability to pay for the mortgage or after a few weeks. When taking out the cover, consider any benefits that will allow you to continue making payments even in sickness such as statutory sick pay. The payments can then start when other benefits are depleted. Once the claim starts to pay the mortgage, it can only do so only for a couple of months depending on your cover ranging from 1 year to 2 years. The amount payable is dependent on the paid premiums.
Things of note when taking out MPPI
Like any other protection cover, you have to fit into a certain criteria to qualify. Some of the qualifications include possessing a job and not being a student. If the cover id sold to someone who cannot make a claim because they do not qualify or did not get the right information, it leads to mis-selling of MPPI. It is also important to note that in normal circumstances MPPI will pay out in claim only a fraction of the total percentage of your income or your mortgage. The cover also has a waiting period from the point the claim matures and payments commence.
Alternatives to PPI mortgage
MPPI can only cover a certain amount of payments for a specific period of time, and not everyone qualifies for it. Thus, it is not the best cover for an extended distress or for some people such as the self-employed. There are other available covers that are more convenient and better placed for different people. For an employed person, employee benefits such as pay without work during an illness or statutory sick pay will cover the mortgage payments. Income protection cover, critical illness insurance and life insurance are other alternatives. These alternatives will cover your mortgage payments and other bills and are usually paid in lump sum amounts. Government help can also be applied as a last resort.
Even though MPPI is a beneficial cushion against many unwanted eventualities, numerous factors must be considered when taking out the cover. This will prevent you from ending up worse than you were before you took out the cover. Furthermore, some options are much cheaper and more beneficial than the MPPI.
A bank complaint is a formal or legal claim made against the bank by its customer. Bank complaints are normally lodged directly to the bank concerned. If the bank declines the claim or takes no action then the customer can use other avenues to make a complaint such as the financial ombudsman or the courts. According to the financial services authority (FSA), bank complaints have been on the increase in the recent past with the first half of 2012 having more than 3.5 million bank complaints. This is a large increase from the past as only over a million bank complaints were lodged in 2009.
Most common bank complaints
Of all the bank complaints, mis-sold payment protection insurance (PPI) tops the list. PPI cases takes up 62 percent of all complaints lodged against banks. Banking complaints such as credit card charges and change of accounts are the second most complained about in banks. In this category credit cards take the bulk of the complaints. Other popular complaints include residential mortgages, motor and life insurance covers.
What to do while filing a bank complaint
As a consumer, the most important thing to do is to file a complaint as soon as you realize there is a mistake. Make the bank complaint official and put it in writing or a record of some kind. Ensure the complaint is accompanied by documents to support it otherwise known as evidence. In your complaint be clear on what the problem is. It is also important to be clear on what you expect the bank to do; send an apology, give you a refund or offer compensation? It is also important to follow the right procedure as indicated by the service provider otherwise your complaint will not be termed formal. After filling the complaint, wait for at least eight weeks. If nothing happens, pay a visit to your bank and follow up. If the bank is not willing to work on your complain or declines it, take it up with the financial ombudsman.
What the financial ombudsman will do
The financial ombudsman is mandated to intervene between consumers and service providers and offer agreeable solutions to disputes between the two. Thus, you will fill out forms offered by the ombudsman and make a formal complaint. Attach all evidence and personal details that will help the ombudsman to follow-up your case. However, note that the ombudsman can only assist after your bank complaint has been declined or ignored by your bank for more than eight weeks. After lodging the complaint with the ombudsman, all you have to do is wait for the verdict. However, if you are still not satisfied with the verdict you can still go to court.
Over the years, bank complaints have continuously been on an upward trend and are not on the verge of stopping. More and more people are filling complaints with their banks. This could be attributed mainly to increased information by financial regulators and consumer watchdogs thus consumer empowerment and financial services regulation.
Payment protection Insurance or PPI for short is also known as the credit protection insurance or credit insurance or loan repayment insurance. It is an insurance cover taken out to protect the consumer in case of circumstances that may hinder the repayment of a borrowing facility. This can be for a loan, Credit Card, Mortgage or any other form of borrowing. Such circumstances where cover can apply includes illness, death, and loss of income among others. In most cases, the insurance cover is an add-on to the borrowing and can be by way of a one off premium or by monthly payments.
There is one big problem with PPI it is rubbish, costly and in many case it does not quality for whoever has taken the policy out so it is worthless.
How is a PPI claim refused?
Mis-selling PPI means that the service provider sold PPI to the consumer without any knowledge, without giving all the necessary information or to customers who do not qualify for the insurance and cannot make claims. This put many banks and lending institutions in the UK on the spot and many were required to compensate customers of any mis-sold PPI which amounted to billions of pounds.
The lenders are very clever at dealing with claims and are refusing about 50% with little justification. The lender sending a letter saying they decline the claim does not mean the end of a potential refund. However, speed is of the essence. We work for clients where this has happened and when they send in their instruction with the refusal letter we complete the necessary paperwork and report to take the claim further of the clients behave. If at a later date the claim is still refused there is nothing to pay. Our 25% is only payable on success so you have nothing to lose. Get hold of us today!
What is refused PPI claim?
A customer must provide proof and officially write to the financial service provider to qualify for the PPI compensation. However, even with proof most requests for compensation are denied by the financial service providers. This is referred to as a declined PPI claim. The claim can also be refused due to lack of sufficient evidence, if the service provider feels that the cover was not mis-sold to you or if the time required by law, six years since the cover was taken, has elapsed or the service provider does not respond to the claim.
All of these reasons can be challenged and we have a strong history of challenging them successfully.
What to do when a PPI claim is refused? PPI claims are refused all the time especially if it is the first time the claim has been made by the consumer. Financial service providers refuse PPI claims in order to cut costs as it can prove to be an expensive affair.
Financial Ombudsman was set up in 2001 under the financial services and markets act. Its main mandate is to act a mediator between consumers and the financial sector. Mainly, it intervenes on behalf of the consumer in most financial issues ranging from banking to insurance to pensions to investments and credit cards among others. One of the issues that brought the financial ombudsman to the limelight was mis-selling of PPI by financial service providers.
PPI otherwise known as payment protection insurance is a cover taken out by consumers as a precaution measure. It is aimed at providing a means of repayment of loans and other financial obligations if the consumer encounters circumstances that will disallow making payments to a loan or credit card to name but a few. These circumstances include death, loss of employment, illness, and accidents among others.
Financial ombudsman and PPI
Initially, many people did not know about the financial ombudsman until the financial services sector started mis-selling PPI. Mis-selling PPI involves selling the protection cover to consumers without sufficient information, giving misleading information, or selling the cover to people who do not qualify thus cannot claim in any eventualities. Financial ombudsman comes in when a claim made by the consumer have been declined by the financial service provider. The ombudsman investigates, and intervenes on the consumer’s behalf leading to a settlement. However, the consumer can still take the service provider to court if not satisfied with results.
Challenges of the Ombudsman in PPI claims
The main challenge of the financial ombudsman when making claims is the time that it takes. Due to the large number of complaints forwarded to the ombudsman, and the limited number of staffing the cases might take up a long time before a solution is reached. Moreover, financial service providers have recently started rejecting some of the claims made by the ombudsman leading to further delay. The impartiality of the financial ombudsman staffs have also been questioned as most worked in the financial services sector.
Processing PPI through Ombudsman
The first step before making a claim with the financial ombudsman is filing the claim with the service provider in question. If the claim is rejected then you can proceed to the financial ombudsman. There is no need to involve a professional in this case as the processes to follow are simple enough. Fill in the right forms and provide sufficient evidence and wait for your case to be investigated and solved. If you are not confident with filling the forms, the ombudsman provides information and any assistance you might need. All services offered by the ombudsman are free.
Even though the financial ombudsman has many challenges, the body handles cases with utmost integrity and with the consumer in mind. The body offers numerous services other than making PPI claims, including investigations into numerous financial cases, transmitting information to consumers as well as ensuring the standards of financial services are upheld all the while maintain ma high level of impartiality.
Payment protection insurance on credit cards is a common thing in the UK. The insurance cover is meant to cushion consumers in case they cannot meet the payments for money borrowed on credit cards. It is a precautionary measure that will allow for the insurer to make payments on behalf of the customer in any eventualities that might disallow payments from being made. Such eventualities include illness, loss of income, and disability, among others.
Who is viable for PPI credit card?
Anyone who owns a credit card and is employed is viable for the PPI Credit card. However, not everyone is viable for the insurance cover. Self-employers, retirees, students and unemployed persons do not qualify for the cover. Civil servants such as police officers, army officers, nurses, doctors and other public servants are also not viable.
How much do you need to pay for PPI Credit card?
The amount payable for the PPI credit card is different from the other covers such as insurance and mortgages. In PPI credit card, the amount payable is dependent on the amount the consumer has borrowed. Thus, the amount the consumer has to pay fluctuates with time. In many cases, the amount payable is included in the monies the consumer pays to the credit card company.
Can PPI Credit card be mis-sold?
Just like any other PPI cover, PPI credit card can be mis-sold. It is actually the most common type of mis-sold PPI. If for example you are in any of the categories mentioned above such as a civil service employee or a student or any of the rest, you cannot make a PPI credit card claim. This means that the cover was mis-sold to you. If the cover was made mandatory when you are applying for the credit card, or no sufficient information was provided to you or you even have no knowledge of possessing PPI credit card, then the cover was mis-sold to you.
How to deal with mis-sold PPI credit card
Once you realize that the insurance cover was mis-sold to you, make a formal complaint with your credit card service provider. You can claim compensation. If the service provider does not take action within at least eight weeks, then contact the financial ombudsman for intervention. However, ensure that you attach copies of all relevant supporting documents. It is also vital to remember that the claim can only be made if the cover was mis-sold to you in the last six years or you found out of the situation three years ago.
PPI credit card aims to protect the consumer. It is an optional service and consumers should not be made to apply for the service when applying for credit cards. However, it is a common occurrence to find that card companies attach this insurance cover to the card leaving the consumer no choice at all. The cover is not obvious to consumers and many go on with paying for it unknowingly. To avoid this, be aware of any charges that seem suspicious on your card.
PPI stand for payment protection insurance. It is insurance cover that cushions a consumer in case they fail to make their loan repayments due to unavoidable circumstances. PPI is taken out alongside a loan and many banks and lending institutions offer it as part of the loan or make it an absolute necessity in order to obtain a loan. PPI covers all types of loans including credit card loans, mortgages, car insurance, and health insurance among others. PPI is also known as credit insurance or loan repayment insurance.
How it works
When a consumer is applying for a loan, PPI is offered as a precautionary measure. It allows the consumer to continue refurbishing the loan after unavoidable circumstances that may reduce or eliminate income. These circumstances include illness, loss of employment, death, disability among others. Even though the insurance cover is taken out by the consumer, the lender receives the payments if the loan is not paid. The policy covers payments for up to 12 months.
Benefits of a PPI loan
The greatest benefit is the ability to make payments in unavoidable circumstances. This will prevent you from repossession or any more debts. The premiums are also easy to manage making them suitable for people in all economic levels. The loan is also non-taxable and thus you will collect the total amount of your premiums once you finish paying the loans. Furthermore, PPI premiums are collectible once the loan or debt has been fully settled without any mishaps.
Disadvantages of a PPI loan
One of the major disadvantages with the PPI loans in the recent history is mis-selling. Most financial institutions have been known to mis-sell PPI loans to their customers. In many cases the loan has complex fine print and is not favourable to many people including self-employers and retirees. The PPI does not cover some illnesses that arise from pregnancy, drugs or other pre-existing medical conditions.
PPI loan mis-sold
Mis-selling of PPI is one of the most controversial cases that have rocked the financial world in the recent past. PPI mis-selling cost financial institutions billions of dollars’ worth of compensation. Mis-selling PPI can be as a result of several different issues such as not providing sufficient information to the consumer, selling the policy to people who do not qualify and cannot make claims, making it compulsory to the customer in order to obtain a loan, or selling the cover to customers without informing them. As a consumer with mis-sold PPI, you can make a claim with your financial service provider. If this is denied, then you can file a case with the financial ombudsman or the law court.
Even though the PPI loan is a great idea in protecting the consumer from uncertainties, lending institutions have taken advantage of this and offered it to unsuspecting customers. Therefore, it is important to read the fine print of any agreements with a lender to avoid falling prey to this. It is also important to understand all the payments you are making to avoid making payments you never signed up for.
The UK laws hold the bank responsible for any fraudulent payments made on a card that is lost unless the user allowed irresponsible use of their cards by another party. However, many people have taken out an insurance cover to allow cover of lost, stolen or fraudulently used cards for up to several thousand pounds. This caver is offered by financial institutions and the card protection plan limited.
Card protection plan cover is offered by numerous financial institutions alongside other credit, debit or ATM card products. The insurance cover is aimed at providing protection to the card holder in case the card is lost, stolen or used fraudulently. The cover is sold together with identity protection cover which allows for tracking of transactions with the card and acts as evidence when filling for a reclaim. CPP also offers financial assistance to people whose cards are lost or stolen in form of cash or loans. The cover is also responsible for cancelling of all your cards when reported lost with one phone call. CPP cover begins when the payments are done in full and is valid for only one year. Normally, the payments are deducted at the beginning of the year.
Over the recent years, CPP has been mis-sold to a large number of consumers. CPP mis-sale ranges from aggressive sales tactics that convince the user to purchase the cover with the purchase of a card, misinformation that includes false statistics, deduction from a number of cards even though only one of the cards is insured and continued payments even when the insured card has been cancelled. Mis-sale also involves selling the cover to the consumer without their consent or knowledge.
How to reclaim CPP
One of the key things in making a claim is obtaining evidence, the first of which is a police statement. It is also absolute necessary to report the missing cards within 24 hours to the CPP for cancellation. To make a formal claim fill in forms from the CPP. Attach evidence such as the original credit card statements and police statement. Once you fill the forms and attach the documents send them to the CPP within the shortest time possible. The reclaim has limited time normally within 30 days. If the complaint is not addressed by the service provider within eight weeks or at least six months then you can take up the case to the financial ombudsman or the court. Whichever way you go remember evidence is the key to getting what you are owed.
CPP is a beneficial cover to the consumer. However, it should be taken out by a willing customer. Sales agents who actively engage the consumer and try to convince them that they need CPP contribute to mis-selling the product. Moreover, banks and other financial institutions should avoid making it mandatory for card holders to take out CPP. In any case, most of what is within the cover is probably covered in other protection insurance.
Life insurance covers are bought in order for people to make sure that their families continue to live the same lifestyle in case of disability or premature death. This makes it easier for the beneficiaries to cope especially in case of death of the bread winner. But even after doing this, it is not automatic that the policy holder or the beneficiaries will enjoy the benefits. This is because some of these claims are declined. There are different reasons as to why insurance companies may reject the claim, some of which are:
When applying for a life insurance cover, the policy holder should be careful to give all the necessary information as needed. They should fill all the forms, do all the required medical examinations, and disclose the results accordingly. Failure to do this and probably not disclose of a major health problem that may cause their disability or death, then they are not bound to enjoy the benefits of the policy since their claim can be rejected.
The life insurance companies usually have a period up to which they can start to pay out claims. This time varies; it can be three or six months depending on the company. But they will always inform the policyholder of this. If a policy holder dies before this time lapses, then no compensations are made. But there are insurance companies that do not indicate amount of time so depending on the time of death, they can determine that the death was too soon and hence, not make the payment.
Uncertain death circumstances
When death occurs, life insurance companies undertake a thorough investigation to determine the cause of death. This is especially done if they suspect foul play with the death of the policyholder. For instance, they may suspect that the beneficiary had a hand in the death of the policy holder. If they do more investigations and find it to be true, then the beneficiary cannot be paid. Suicide is the other reason that would reject a claim, especially if it happens soon after taking the policy. This is because the death is thought to be premeditated in order for one to leave their beneficiaries with a better life. However, some companies give a period of which they can pay out the claim, for example, after a policy has been in force for 5 years.
Payment of premiums
Premiums are meant to be paid consistently and on time. Policy holders should ensure that they pay all premiums accordingly to avoid their claims from being rejected. Irregular payment or total failure to pay the premiums will make the policy lapse hence cannot be paid out. However, the insurance companies usually have a grace period upon which the policy lapses. In case of financial difficulties, it is important for the policy holder to contact the insurer and know what provisions they have in order to continue with the policy. For instance, the premium may be reduced to the minimum.