Before we look into the process of reclaiming a Payment Protection Insurance, here's a quick overview of what Payment Protection Insurance is, how to identify if you are paying for PPI and how to identify if you have been mis-sold a PPI. Payment Protection Insurance or PPI as it is popularly known is a policy that covers your monthly loan or credit card payments in an event of you becoming unemployed, invalid or even death. It's also known as Loan Protection Insurance.
If you have a mortgage or credit card in the last ten years, chances are that you may have Payment Protection Insurance. To check if you have paid PPI, you can check your credit card statement and see if PPI is included. Loans usually go for the single premium policy where PPI premiums for 36 to 60 months are calculated and added to the main loan. Interest is levied on the PPI at the same rate as the main loan right from the start. Credit card PPI's are added every month and thus would be shown on the monthly statement.
If you never asked for a PPI and were given one, if you were told that taking the insurance was compulsory or taking the insurance improved your chances of the loan getting approved or weren't disclosed that a cheaper PPI could be got from a third party, or were unemployed, retired or self employed when you took the cover, chances are that you have been mis-sold the plan. The profit obtained on these PPI's is so huge, that lenders often earn more from the sale of PPI's than from the sale of the loan.
There are many attorneys who can help you with PPI reclaims. They would ensure that the premium on the PPI is returned as it should have never been sold. They would also help you file PPI reclaims on all payments that are made towards the policy, return of commission from the lender obtained from the sale of the policy, return of broker fees or commissions if the loan 's been arranged by the broker and the statutory interest on all the above mentioned amount. You could also reclaim PPI through the Financial Ombudsman.
If proved that you were mis -sold the PPI, you could get a reclaim of all your premiums with an interest of 8%. If however, you weren't mis-sold the PPI but were treated unfairly, when cancelling you could apply for a reclaim.
However before you to meet an attorney or a claims management company to apply for a PPI, make sure to first write to the company that sold you the PPI in the first place. There is a high possibility that you would be told that the policy was not mis-sold and that they have recorded conversations to prove that they are right, but stick to you stand. If your grievances are not heard at you could contact the Financial Ombudsman Service to get your PPI reclaim.
The author of this article has immense knowledge in PPI Claims and is in close association with Real Claims. Real Claims is one of the leading companies in the UK specializing in Payment Protection Insurance reclaims. Unlike other PPI Claim companies Real Claims [http://www.realclaims.co.uk/] will take on larger PPI claims going through a litigation process allowing them to potentially claim more money for the client.
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