Payment Protection Guide - An Article for Public Benefits

Payment protection insurance is useful because it helps you make loan payments when you are short on cash. When you are approved for a mortgage, it is usually at a rate that you can afford at that time. If you lose your job or have to settle for a lesser job, you might need PPI until you can regain your former level of income. This is only a short-term solution to this problem, but it can prevent you from losing your home if you have to suddenly search for a new career.

Remember that a high number of PPI claims are rejected. This is because some insurance providers do not provide all of the facts involved when purchasing this insurance. When this occurs, it is an example of PPI being mis-sold and is a situation where reclaiming PPI back might be possible. Insurance companies rejecting these claims are one reason why so many people have been scared away from PPI in recent years.

For example, if you cannot work because you have hurt your back, you would think that your PPI would cover you. This is a situation where you would need your mortgage payments covered because you cannot physically work to make the money that you need. If you believed that this would be covered, reclaiming your PPI might be an option for you because your insurance company mis-sold your insurance.

If you feel like your PPI has not done you any good when you needed it the most, reclaiming PPI back might be your only option. This was a major problem in the UK insurance industry for years, as countless insurance companies mis-sold PPI to consumers. The courts ruled in favour of the consumer in this situation, so you do not have to worry about losing your money. You can use a claims management company if you find yourself in this situation, as the company will handle most of the litigation for you. If you thought that your insurance would cover your mortgage under most circumstances, but it did not, look into reclaiming your PPI to get the money that you deserve.

A whole raft of advisors have now got accreditation from the Ministry of Justice to be able to advise their clients on mis-selling of products such as PPI, and millions of borrowers have successfully won their claims against this mis-selling practice. If you believe you have been inappropriately lured by a lender into purchasing an unnecessary PPI policy, I would encourage you to file a claim today with an appropriate advisor. If you do not know an advisor you will find details of one at the end of this article. Most claims companies will not charge up front for the service they offer. They will simply take their costs from the amount they recover for you. As this is based upon a percentage of what they recover, they are incentivised to make the greatest return for you.   

The usual cost is 30% of what is recovered and this is because it is conducted on a no win- no fee basis, with all the risk being taken by the advisor in terms of his time and resource. That advisor also has experience of running and winning many hundreds of claims and so knows how to work the system.