Thousands of individuals are bearing the cost of payment protection insurance
policies in the UK without knowing about it. Lenders often add this insurance policy to a loan, mortgage or credit card obtained by the borrower. You too may be paying for this insurance policy without knowing about it. This has become a very common malpractice in the past 10 years.Media revealed instances of misselling where financial institutions portryed PPI
policies as compulsory options. In other cases, customers were not informed that they will be paying for payment protection insurance
as well. Customers were not informed of the features and nuances of these policies. Today, a majority of individuals owning PPI
will not benefit from the same.
The lender may not have informed you that you will be paying for PPI. Yet, you can determine this payment by analyzing the statement provided by the lender. In some cases, the cost of PPI can constitute up to 40% of the total amount payable. Avoiding this payment can help you save a lot of money in the long run.
To recover money that you paid on missold PPI is your legal right. Do not be afraid that lenders may retaliate against you and make changes to the loan agreement. You cannot be punished or troubled in any other manner for exercising your legal right. Hence, proceed ahead without any fear as long as you can prove that the lender is at fault.
Dealing directly with the bank is an option but this can be a pedantic, cumbersome and troublesome affair. You will have to complete many formalities and procedures. You will have to devote a lot of time and effort to this task. The Financial Services Authority has imposed a deadline of 8 to 12 weeks for such claims. You will have to follow up on a regular basis to recover the money and ensure that you save money in the future as well.
If personal intervention is not feasible, then you can delegate the task to company that specializes in these claims. The company shall complete all the formalities on your behalf. In return, they will charge a small fee from the final payment you receive from the lender. If you lose the claim, then you will not have to pay anything to the company.