Payment Protection Insurance Claims
Within the last five years the number of people making payment protection insurance claims has risen dramatically. Initially sparked by a 2006 investigation by the Financial Services Authority the cover is now, in fact, the most complained about financial product of all time. Most complaints regarding payment protection insurance centre on the way in which the cover was sold.
Payment protection insurance is designed to cover the borrower’s repayments in the event they are unable to work due to sickness, accident or involuntary unemployment. Unfortunately, many people were sold policies they did not want, did not need or could not use. This is known as mis-selling.
The issue of mis-selling incorporates a number of different failings, but, generally speaking, it signifies that some aspect of the policy sale was not conducted as it should have been. It may be that the customer was given misleading information or that they were put under pressure to agree to take the cover. In the most serious cases, though, cover has been found to have been added without a customer’s knowledge or sold to customers who are ineligible to use it. These are all examples of mis-selling upon which payment protection insurance claims may be based.
Most people who discover they have been mis-sold a policy are keen to know how much they could reclaim. In the event your claim is successful, your refund will be determined by how much you have paid into the policy and will usually depend on the age, size and type of payment protection insurance.
As a general guide, loan payment protection insurance is added as a lump sum at the start of your loan and will normally cost between 13%-25% of the base loan value. On a £5,000 loan, therefore, this would equate to between £650 and £1,250 over the life of the loan. Credit card payment protection is added rather differently. It is usually applied on a monthly basis and is calculated based on your outstanding balance. Costs vary, but average at around 79p per £100 outstanding. This means if you owe £5,000 on your credit card you may pay around £39.50 per month, that’s equivalent to £474.00 per year.
If you require assistance with your payment protection insurance claims we can help. To get started, simply fill in our quick claim form and we will send you out a claims pack. The pack is simple to complete and as soon as you return it we can get your claim underway.