| By :
Colin Hartness
Payment Protection Insurance (PPI) is a well-utilised financial product in the UK, offering individuals the ability to ensure that repayments can be covered. Losing a job can result in people being unable to make mortgage, loan, or credit card repayments, with PPI offering a payout to ensure that extra debt is not noted. However, there has been a large amount of missold PPI in the UK, and those with insurance cover need to check that their financial product is valid. Financial institution regulators in the UK continue to be effective at preventing misselling as much as possible but some companies continue to operate unscrupulous practices. Millions of individuals in the UK have bought insurance that is of little use to them, and discovering such cases is vital to ensure that households are not paying for products that are of no benefit. Many consumers were sold PPI as a condition of being accepted for the loan arrangement and in many cases the customer was not aware of having purchases the product at all. Such situations result in people having policies that may not offer the requirements needed, or provide insurance for circumstances that are already covered by the household's alternative products. If a Lender is guilty of misselling PPI then they are obliged, as a result of a recent High Court Ruling, to refund the customer and place the client into the same financial position as if they had never taken out the insurance in the first place.. Even if insurance policies have been missold through genuine error, companies are responsible for compensating consumers. Individuals who believe they may have paid PPI on their financial agreements are advised to check their products to make sure they have not been missold a product which could have been offering a worthless service.. Many consumers are often shocked and surprised by the amounts of PPI redress they are owed by the Lenders as have not realised the vast amount of interest they have paid on the PPI premiums over the years and months. Credit card companies have often charged extremely high rates of interest on existing balances and as a result there has been the same charge applied to the PPI premiums. When a PPI claim is upheld by the Lender then all premiums plus interest on the premiums together with statuatory interest is returned to the client.. PPI settlements can run into literally thousands of pounds depending upon the length of time that the policy has been running and the value of the loan it should have been covering. Millions of UK consumers now have the right to seek financial redress as a result of a recent High Court ruling as a result of the fact that PPI is widely recognised as being potentially missold
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