Mis Sold PPI - Online Tips
Mis Sold PPI is the biggest financial scandal to hit the lending industry in living memory. There have been, and will be billions paid out in compensation for blatant overcharging on bank accounts. Th...
For years lenders have run an elaborate con game by selling payment protection policies alongside loans. While the lenders have pocketed outrageous profits, the policies themselves have often proved to be worthless. Various consumer groups and regulatory bodies have shown that as many of 85% of borrowers who attempt to claim are flat out refused.
There are a multitude reasons for this. But the biggest reason is that the policies that the lenders sell are not designed to meet the individual needs of each borrower. Instead they are sold to realise the maximum profit for the lender.
There is a one size fits all approach to the sale of the policies. This means a 40 year old clerical worker in stable employment may be offered an identical rate and policy as an 18 year in their first job. The policies are obviously not designed to protect the borrower but serve only to increase the lenders' profit.
Even worse, the policies are sold to clients who will never, ever be able to claim. This is where the term Mis Sold PPI has originated from.
For instance, PPI policies are meant to cover loan repayments for the borrower in the event they are involved in an accident, fall ill or are made redundant. This sounds like a great idea BUT if the borrower cannot prove income or have fluctuating earnings any claim on the policy will be refused.
So, if you are self-employed, a company director, a temporary, unemployed, a housewife or employed on short term contract your claim will almost certainly be refused.
All the money you have been charged for the policy and all the interest you have paid is the same as just throwing your cash away. Your bank account is much thinner but the profit for the lender just gets fatter and fatter.
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