Reclaiming PPI Premiums
Posted on 19. May, 2011 by admin in Insurance
Payment protection insurance or PPI is insurance coverage which pays a person’s loan payments if that person becomes sick, or is injured, or becomes unemployed and cannot make the payments. It is available for mortgages and various forms of consumer financing. PPI has been widely sold in the United States and Great Britain for a number of years. The coverage is normally bundled in with a loan product when it is first issued. In that way, the coverage is sold by lenders. There are more than 20,000,000 PPI policies in effect.
PPI has been the subject of great controversy over the last several years. Complaints include misrepresentation of the coverage as mandatory for borrowers and its inclusion in a loan product without the borrower even being advised of it. In many cases, claims against coverage are simply routinely denied. Borrowers do pay a premium for such coverage, and many borrowers have objected to the coverage and sought recovery of premiums and reimbursement of payments made.
The Internet is littered with web pages devoted to the topic of the PPI reclaim. It is possible for a borrower to make such a claim him or herself. There are also many services that offer to pursue a claim for compensation on behalf of borrowers. These include law firms that have built a practice in this area.