PPI, or a Payment Protection Insurance, is a different bank product that helps you pay your loans even if you get sick or out of job. It might sound good, and most likely the bank has tried selling one to you.
However, here are the things you need to know first before taking out that loan with that PPI.
1. In most cases, it is useless –Most of the time, it is sold to people who are less likely to get hospitalized and are less likely to run out of a job; making it pointless. Even if you get one, check out the terms of the insurance. Most of the time, it gets activated on situations that are less likely to happen to you anyway. You can find more details on PPI Claims Company on the site ppinopaperwork.co.
2. It is not compulsory – Your bank officer might have pitched to you that getting a PPI is necessary to take out that loan. False. PPI’s, as per court ruling, is highly optional for the client. Yes, you can take out that loan without the PPI.
3. The bank is getting a lot out of it – In 2014, a court ruled in favor of a certain Susan Plevin, who took out a loan along with a PPI. She knew about it and knowingly purchased one. However, she later found out that the bank just earned a commission of a whopping 71.8% from her PPI payments. From there on, the courts decided that any PPI commission amounting above 50% must be paid back to the client. This is also known as the Plevin rule.
4. You can get a refund for it – With everything stated above, it’s likely you’d want to get your money back, and you can! Courts allow you to file a PPI claim and get you money back from the bank.
To better process your PPI claims, ask for a PPI claims company to assist you with the paperwork. So, if you have paid for a PPI, get your money back and file those claims now!