Reclaim Your PPI Charges And PPI Premiums

Information on PPI charges

Payment Protection Insurance is also known as PPI, Loan protection insurance, Loan repayment insurance and Credit protection insurance. PPI should not be confused with Income protection or credit card cover.

Payment Protection Insurance comes to your aid. The cover usually starts a month or two after you take out the loan and lasts for a finite period, normally a year or two. After that the borrower must arrange for other means of repaying the loan. However, the period covered is typically long enough for most people to start earning wages again to service the loan.

PPI insurance product is designed to cover an unpaid debt, typically in the form of an overdraft or loan, in cases of involuntary redundancy of the borrower. Banks and other credit providers sell it as an add-on to the debt.

What are the different types of PPI?

• Many financial products fall under the stable of PPI.
• The different labels simply reflect the different purposes to which the individual products are suited.
• Mortgage payment protection insurance will provide a monthly benefit to an incapacitated person to ensure mortgage payments can be sustained
• Loan payment protection insurance will meet the repayments on any other type of loan
• Income payment protection insurance will supply a monthly replacement income to help meet any ongoing pecuniary obligations.

Why should you take up the extra financial burden of paying PPI charges?

• We can never tell what awaits us in the future
• We may face circumstances that may stop us from working and earning a wage.
• PPI covers the borrower against sickness, unemployment, accident or death, which might stop us from paying off the debt.
• PPI charges helps you get a tax-free payment towards your monthly repayments, easing out the financial stress. Payout limits are, however, applicable
• Government assistance is offered only for a short period after you become unemployed or disabled. It would generally cover only the interest payment and not the capital repayments. If the mortgage is higher than a certain amount, you may not get any help at all.

Who should obtain PPI?

The difference of PPI Payment Protection Insurance from other types of insurance, such home insurance, is that it is not simple to determine whether it is the right choice for a person. Before starting to pay PPI charges, you must take into consideration if you have any other insurance, like sick pay or death-in-service benefit that already covers you.

What is the cost and PPI charges you are likely to incur?

PPI charges can vary significantly, from 16 to 25 percent of the amount of the balance due. The premiums may be charges every month of the entire premium may be clubbed to the loan amount up-front – the 'Single Premium Policy' approach. The latter increases the effective cost of the total policy because the money loaned from the lender to pay for PPI incurs extra interest, usually at the same APR as the original amount borrowed.

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