This article will be about Payment Protection Insurance and how to go about reclaiming it, but before we actually get into the juice of the article I want to make sure you understand what Payment Protection insurance is, when you need it, and how to know if you have been mis-sold when it comes to Payment Protection Insurance. PPI is an unusual type of insurance that will cover your monthly fees on either your credit card or on your loans you may have gotten if anything happens to you and you are no longer able to work. This type of insurance is also called loan protection insurance so if you hear us call it that don’t worry it means the same thing.
Chances are good you have payment protection insurance if you have had a mortgage, loan, or paid a credit card bill within the past few years. Many people are paying for PPI and don’t even know it. TO check to see if you are paying for it just check your credit card statement and see if “PPI” is on there. PPI is calculated and added to the main loan for up to sixty months so you will be covered for a while if you do have it. Credit Card PPI’s are added every month so if you are paying it, like we said it will for sure be on your credit card statement, and if it isn’t then you are for sure not paying for it.
Some of you might be a little confused right now because you might have a PPI on your credit card statement but don’t remember ever signing up for one, you also probably don’t remember even getting asked if you wanted to join one. Others of you were probably told you needed to get one, others were probably told it would make it easier to get a loan. If this happened to you then you have been mis-sold. The reason the people who give away loans push PPI’s so hard is because they know the payout from them has huge potential so they obviously want that.
If this did happen to you the good news is the fact that there are a bunch of attorneys out there who are willing to help and fight for you to make sure that you get your money back because it should have never been paid for in the first place. We have received a few emails from people asking us if we think it is worth it to hire lawyer and take it to court, our answer to that questions is a very clear yes! If you have any reason to believe that you might have been mis-sold then you need to hire a lawyer ASAP. After going over things with them they can tell you whether or not it will be worth it to take it to court
The awesome thing is that if you do win in the court you will be able to reclaim all the PPI and even get 8% interest. But what about the times where you don’t win the court case and it couldn’t be proven that you were mis-sold? Well you can still file say they treated you poorly (which they probably did) and file for a reclaim.
Now to go back to the question about whether or not it is worth the trouble, one thing we feel as though we should add is that it is only recommended you do that after you write to the company and use it as a last resort. Chances are good they will tell you it was not a mistake and they actually have proof in a few different forms showing you were fully aware of what was going on, but don’t give in to them! Hopefully they will take care of it for you, but if they don’t then go ahead and hire an attorney.
So what about PPI’s and loans? Loans can be either a good thing or a bad thing. If you are good with handling your money and managing it, then loans are great. However, they can be a horrible thing if you do not have good money management. If you do not have a job then you won’t be able to get a loan because you won’t be able to prove that you can pay it month by month. Have you ever thought about what if something happened to you and you could no longer work? What if you got injured or sick and are now out of a job but you just took out a loan? So far this article has been talking about all the negative things about Payment protection insurance, but now we are going to talk about all the positive things about it.
A PPI is an insurance plan that will help you cover all your payments in times of need like this, which hopefully won’t happen but it is nice to have to comfort of knowing you will be covered. This is especially true for anyone who is paying a mortgage or uses a credit card extensively to purchase the majority of their things. Just like the majority of insurance types out there, this type of payment is a monthly payment. There are many names for this such as accident sickness insurance or unemployed insurance so if you hear those terms just know they are talking about the same thing. If you have decided you do want/need a PPI then you need to understand the different types. In this article we are going to go over a few suggestions and go over the different types so you know which one is best for you.
Even though this is usually short term protection it is actually a very useful one because if something does happen to you and you have an accident you don’t want to be stuck and go broke. This policy will last from 12 months to 60 months (in extreme cases) depending on the company. One thing you should understand is that it is possible to increase the months you get covered for but your monthly rates will go up a lot. In order to get accepted for this type of insurance you have to be at least 18 years old and prove that you do in fact have a steady job. Also, you usually need to work at least 16 hours per week so if you are self employed it might be hard to receive this kind of insurance.
There are two different types of protection for this, this first one is the standard one that doesn’t take into account things such as age, gender, whether or not you smoke drink, and any other past illnesses. If you do make a claim and you have this kind of standard insurance you will have to wait 30-90 days to actually receive the insurance. They will cover you for a max of 24 months and after that you are on your own and will need to start paying it for yourself again. There is another option that is age related but it is only covered in places like the UK, not here in the US.
When it comes to credit cards and PPI, many people understand it without that many questions, but when you are trying to get a PPI on a mortgage there are many questions someone might have. Now as we said above there are many people wondering if they even need a PPI and we will answer that in the section below.
To finish off this article, we have compiled a list of questions that some people might have had when it came to PPI’s. They are:
Who benefits from a PPI?
Well to be totally honest as much as I would love to say it is the borrower, more often than not it is the seller. Although if it is done properly the borrower will be the one who benefits the most.
How long will the coverage last?
It can vary on a lot of things, but if the victim was injured, got really sick, or can’t work for any other reason they will usually cover them for 12 months. However, we do recommend you check in with your company you are getting your PPI from before you just assume 12 months because it really is different for each company.
Is PPI costly?
The price is going to vary depending on a lot of factors, but to answer the question it can reach a point where it is costly if you are not managing it properly. However if it is well managed then a payment protection insurance plan is not too costly
How do you make a PPI claim?
Obviously you need to make a validation for your claim. To give you an example, if you got fired from your workplace you will need some sort of document from your boss showing that you have been fired and are now out of work.
Keep in mind the point of this article-getting a payment protection insurance plan can be dangerous is you aren’t careful. However, it can be a lifesaver if you manage it well.