Payment Protection Insurance Reclaim

For years now banking institutions have been selling PPI or Payment Protection Insurance alongside their loans, mortgages or hire Purchase agreements. This insurance is, in essence, an ASU (Accident, Sickness, Unemployment) insurance policy specifically linked to the loan or HP agreement and is supposed to cover the borrower in case circumstances prevent him/her from paying back the loan for any length of time.

There are a number of problems with the approach used to sell these products and, in some cases, the products themselves.

Firstly, some lenders bundled the PPI in to the loan without even asking the borrower if they wanted the insurance and as a result the monthly repayments were inflated considerably.

Secondly, even when the borrower was made aware of the PPI in some cases the explanation for why it was required was misleading or inaccurate and in a lot of cases the borrower already had adequate ASU coverage of their own.

Thirdly, and the most disturbing, is that in the unfortunate event that the borrower tried to make a claim, in many cases the policy itself was so restrictive that is proved to be no help at all. Imagine paying for something that was meant to help you in times if illness, only to find that clause 11.3.b specifically excluded your illness from cover!

And lastly, the cost is extortionate. The average cost for insurance on an unsecured personal loan of £10,000 could be as high as 26% of the loan value, or £2600. Take this amount and compare it with £99 for a travel insurance policy that covers you for £1M of medical expenses whilst you are on holiday, or £200 for your home and contents insurance or £400 for your car insurance - that puts the cost of PPI into perspective.

There is a phrase in insurance broking called 'unfair inducement' and it is supposed to prevent a person being sold a policy for any reason other than the policy fits the need of the policy holder. Selling a policy based solely in making a profit is an 'unfair inducement' and as such just about any PPI policy has been miss-sold. We can help you get this money back.

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