Payment Protection Policy Cover

It is not compulsory to buy a PPI policy...

Payment protection policy cover is basically an insurance coverage. Some banks and credit card providing companies sell this add-on insurance policy when you take a loan from them. If you ever meet an accident, get sick, lose your job or even face any such difficulty to handle your outstanding debts within a definite time period, this payment protection policy will cover you against that loan or overdraft.

However it is not compulsory to buy a PPI policy along with your mortgage loan. But when you apply to a bank or a lender for your mortgage loan, you are often made to believe that an insurance coverage is obligatory to acquire the loan. It is also found that lenders are counting the coverage with the original loan without informing the customer properly.

To stop this illegal mis selling of payment protection insurance coverage you do not need to be an expert. You just need to keep in mind a few important facts. Here are 10 ways to avoid being mis sold a mortgage payment protection cover. Check out carefully :

1. A PPI policy is so designed that it is not supposed to be sold to an unemployed or even a self-employed person. If you are a non-working person or even a self-worker you do not need to buy this policy at all.
2. Lenders often try to convince you for this policy by saying that buying this policy will help you to get your application approved super fast, otherwise your application will not be granted . No doubt this is an illegitimate way to make you buy the policy.
3. PPI is an insurance coverage like other coverages. Naturally you are free to buy the PPI cover from an insurance provider of your choice. Your mortgage loan provider may hide this from you.
4. Do not just agree with the loan provider if you are told that the policy is a mandatory one.
5. Your bank or credit card providers may ask you to pay upfront for the PPI while the insurance policy itself tells us that you can have a choice for monthly payment.
6. If you ever increase your loan amount in future your service provider may increase your PPI premium without your consent. So, be careful before being mis sold the cover.
7. You really do not need any mortgage payment protection policy along with your mortgage loan in case you have any other income protection coverage.
8. There are some factors which can stop you from being eligible for claiming your payment protection coverage. If your lender do not inform you about those, he is surely trying to mis sell you the policy.
9. Never pay an upfront premium for a mortgage payment protection insurance. In future, you may not get any refund even after an early repayment of your loan.
10. Before signing the insurance papers always learn in details the terms and conditions of the policy and then take the final decision.

You have up to six years to reclaim your PPI back if you have been mis sold it. Keep all your documents and receipts handy as these are the most important things you will need to enable you to claim your money back.

If you’re not sure what do to next – get in touch with us. We should be able to sort out which company is involved and pursue then for compensation.

• 'No Win - No Fee' Service and No Upfront Fees
• Expert friendly advice
• We will handle your case from start to finish.

Click here to complete your PPI Claim Form