Do you know what a PPI is? There is a good chance that your loans, credit cards, or store cards have a PPI, or payment protection plan along with it. If you didn’t know that you had one, you might want to check to see if you can get refunded for the money. Many PPI plans are sold to people without their knowledge, and it could mean the difference between being okay and being in debt. You do have a chance to reclaim money spent on a PPI plan.
The purpose of a PPI plan is to protect you against not being able to pay your loan or credit card bills. If you cannot pay because of an accident or illness, or is you are out of work the PPI plan is supposed to cover the payments for a specific period of time. The problem with a PPI plan is that they are extremely poor value for the money that you would spend on one. The potential benefits are nothing compared to the cost you will endure by having this protection on your credit cards and loans.
There is a chance that even if you do have a PPI plan, there would be a chance that you wouldn’t be able to claim it if you needed it. Many PPI plans are sold to people who will never be able to claim it. The policies are written so that most of the time, people who will need to use it will not qualify to claim any benefits from it. For example, you cannot claim a PPI plan if you are self-employed and cannot work. Also, if you are retired with you took out the plan, it will not cover you. Other instances where you cannot claim benefits from your PPI plan include medical conditions that are not previously explained and you cannot be covered for loss of work for stress or back injuries.
According to the Office of Fair Trading, just one in five claims on a PPI are successful. And now there is sufficient evidence that many companies are forcing customers to buy into PPI plans when they really don’t need or want them. Many companies like this will tell the customer that is it compulsory, even though it isn’t. If someone tries to sell a PPI to you, question the reasons. Often times, bad companies will refuse to quote you on a loan without taking the PPI. If that is the case, you may want to find another company to work with.
The Office of Fair Trading and the Financial Services Authority are groups that are working to investigate the PPI market. They are looking out for your best interest in order to save you time and money when you are dealing with companies that offer PPI. If the sellers of the plan do not conform to the rules of selling PPI, you may be able to reclaim the money you spent on the plan. Make sure you are buying from a reputable company.
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