All You Need to Know About Payment Protection Insurance

01. May 2012 · Write a comment · Categories: Finance · Tags: ,

Payment protection insurance has gained popularity in the United Kingdom within the last few years. You must have heard a lot about it lately, since there are issues that have been associated with it. These issues have made PPI more infamous rather than popular.

Now before we delve to why this type of insurance seems to have turned bad in the eyes of some, let us first talk about the basics: what is it, its benefits, if you need and how to get one, and finally, what is the reason behind all these PPI ruckus.

WHAT IS IT?

Payment protection insurance – as the name itself suggests – is a type of insurance which can be used to pay for whatever it is that you have to pay. These can be a car loan, a housing loan, or credit card bills. In principle, it is a good type of insurance and is designed with a noble cause in mind. The principle behind PPI is that it will cover and pay for your financial obligations the moment you cannot do it yourself. This happens when you lose your main source of income, say, your job. Losing your job may be caused by unexpected unemployment, sudden health failure, or a serious accident that which may make you unable to stop working.

The company from which you owe something may not consider the excuse that you have lost your job because of unavoidable reasons. They will close your loan or credit account if they gather proof that you cannot pay for them any longer. This is where a payment protection insurance becomes helpful. It will make sure that your financial obligations are well covered.

WHAT ARE ITS BENEFITS?

The most obvious benefit of payment protection insurance is its ability to pay up for your monthly dues and bills when the time comes that you have no stable source of income. In turn, this results peace-of-mind that could not be bought by any amount of money. This type of insurance policy will do what it should do to ensure that help will be there in time of need.

DO I NEED ONE?

Nobody in particular needs a payment protection insurance. As a matter of fact, insurance seems to be something that voices out one’s insecurity over certain things. However, these days when you are not sure of what is going to happen the next day, when crisis seem to just sprout out of nowhere, it is best to safeguard yourself, your loved ones, and your properties. You may not particularly NEED it, but being extra cautious in the form of getting various insurances would definitely not hurt.

HOW CAN I GET ONE?

Payment protection insurances are mostly bundled with the loans that you acquire. It may also be purchased alone or apart from the loan especially if you have acquired the loan before the inception of PPIs. If you have taken a loan or credit card in the last few years, a PPI is most probably bundled with it already. Otherwise, if you wish to check or get a stand alone PPI, you may inquire with various insurance companies and banks that offer the said insurance.

WHY ARE PEOPLE CLAIMING BACK THEIR PPI?

Payment protection insurances seem good. So why is it that more and more people are trying to claim back their PPIs? This must be the question going around your head. A successful PPI reclaim means that more or less a thousand pounds could be added to the claimant’s name. Over the years, PPIs have been missold in an attempt for the insurance agents to get commissions out of it. Misselling of PPIs can either be intentional or not. The seemingly simple mistake of not clarifying all the terms and conditions of the PPI can be acceptable grounds for filing a PPI claim.

Claiming back a missold payment protection insurance is the main issue that this type of insurance is facing right now. While it does have its benefits, it loses all its credibility once it’s missold to you. So if you’re still interested in getting a payment protection insurance today, just make sure it’s done with your consent and that you’re qualified for one.

How to save money online

04. April 2012 · Write a comment · Categories: Uncategorized

With the way technology is going everything seems to be getting cheaper if you know were to look i am going to show a few ways in which through the Internet people can find items cheaper.

The first way is are you looking for brand new or are you willing to have second hand.if you are looking for brand new then you can find several website offering items new at a reduced price just make sure that you check the postage price other wise it might not be as cheap. If you don’t mind second hand then eBay has always got loads of items on offer and you then pick your budget and set the price in the biding auction and see if you win and again remember to look out for postage cost so that you don’t end up over paying for a item.

Then there are price comparison sites were you can save a small fortune but remember that some companies aren’t on these sites as they charge the company a fee to be on there site which means that you think this is the cheapest deal but in fact if you just looked a bit more on the Internet then you could save your self ever more money on tan before.

There is also sites were when you purchase a product you receive a small percentage of the money back for that purchase the cant make hugh savings on products you are after.

How The PPI Claims Story Unravelled

30. March 2012 · Write a comment · Categories: Finance · Tags: , , , , ,

In 2005,the Citizens Advice Bureau (CAB) uncovered what they described as ‘the biggest protection racket’ in the UK. Most people reading that might be misled into thinking that they uncovered an underground criminal operation… but it wasn’t. It was our trusted high street banks that had been making £billions by mis selling payment protection insurance.

The full extent of the mis-selling wasn’t truly revealed until much later, but once the cats out of the bag… More recently, the same banks were fined £millions for the industrialised mis selling of payment protection insurance in its many different guises. The biggest fine, £7.1million, being levied against the Alliance and Leicester, now part of the Santander Group.

In theory, PPI or Payment Protection Insurance is actually helpful for borrowers. It provides security for the borrowers, giving them piece of mind in knowing that they will still be able to pay their debts, should they become unable to work due to an accident or illness or become redundant.

However, as it was such a profitable product for the banks, often earning them more than they were making off the loan interest alone, and driven by commission hungry bank staff, anyone who applied for credit became a target. It is estimated that over 20 million ppi policies were mis sold in the UK and the borrowers are now making PPI claims for compensation in record numbers.

After being caught with their hands in the proverbial cookie jar, you’d think the banks would try to avoid any more negative press and pay back the money they stole pretty quickly… wishful thinking I suppose. Recent figures suggest that they are rejecting up to 50% of all ppi complaints and referring their customers to the Financial Ombudsman Services… who as it turns out are ruling in favour of the customers on 75% of those cases!!

So if you’ve had a loan, mortgage, credit card, car finance or any other borrowing in the past 10 years, you could well be entitled to a significant PPI reclaim. I suggest you check your old paperwork or contact a reputable PPI Claims Company to find out how to start your PPI claim.