Biting back with teeth on PPI

Is PPI a source of saviour or betrayer?

08:54 03 May 2013

PPI(protected payment insurance) was looked upon as a way of guaranteeing the payments to the lender from the borrower of medium to large purchases of the course of the loan should circumstances change for the borrower.

 

The problem quickly became a revenue source in the form of an open ended blank check for the lender at the expense of the borrower. Now it’s come back to bite them and the borrowers are the ones with the teeth.

 

On the other side of the coin, many financial institutions on the surface are crying poverty but underneath are too busy shirring themselves by funding each other in attempt to cover the thousands of misleading PPI claims landing on their desk daily.

 

A few, not expecting the tsunami typeavalanche of mis-sold applications, were attempting to set an example by processing the claims. But with the onslaught not only cutting into their profit margins, it is said that it is beginning to effect their operations.

 

This fact notwithstanding, banks need to be held accountable and perform their own reverse PPI those mis-sold this provision in their loan packages.

 

• Review your original papers to determine if you have PPI clause in your loan package.

 

• Was it fully disclosed as a separate financial amount that is added to the loan subject to separate interest and fees? The PPI contingent to obtaining the loan.

 

• Communicate with the bank. You may get further along or come to some kind of mutual agreement without going to court. If not, inform Financial Services Agency (FSA), FOS, and Ombudsman.

 

• Can file yourself or go thru an agency specializing in this matter. There is no guarantee of a favourable settlement or repayment. Be aware of agencies that collect their fees only if successful where it could cost more than paying upfront.

 

With the threat of imposed deadlines and funds depletion; claimants due refunds from mis-sold PPI loan packages, shouldn’t hesitate to act. These are your funds and no amount of excuses should permit the financial institutions to bank it.