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.