Assuming you have read the news throughout recent months you undoubtedly will be aware of the world wide recession and how it has been felt by individuals across the world. In the world of personal finance we have seen plenty changes, particularly when talking about loans and mortgages.
It is likely that you have read about the numbers of people who are pursuing a PPI claim, and naturally wondered what it is all about. PPI – an abbreviation of payment protection insurance – is a controversial part of a good proportion of credit arrangements that is intended to help the customer in the event that they find themselves out of work and no longer able to keep to the agreed deal.
The payment protection policy is simply an insurance agreement which is paid for in monthly instalments. But, a few years ago the authorities who oversee the personal finance market received a number of complaints from peoplecustomers who discovered they might have been mis sold PPI policies, and an in depth investigation commenced.
The body that made the investigation discovered that there were a number of cases of mis-selling of PPI policies, among them many that had been sold to people for whom they were useless and some in which individuals were unaware that they had taken out and were paying for such a policy.
As a result of the findings of the investigation a number of financial institutions – many well known companies – were given heavy fines, and the regulations covering the sale of PPI policies were totally revised. At the same time, some of the borrowers affected engaged professional help to seek PPI claims for compensation, and a number of people are realising that they may be due some recompense for mis-sold payment protection insurance.
At the time the new regulations were written they stipulated that there would be alterations to the manner in which PPI policies could be sold, and it is as a result illegal to sell a borrower a policy when granting the loan or mortgage. It is also not permitted to offer the buyer a PPI policy for a set number of days after signing off the loan, thus allowing the consumer time to search for the best policy.
Part of the reason for bringing in the fresh regulations was because the investigation discovered that a number of people had been told that they had no option but to take a branded PPI policy provided by the lender, a point that is at the heart of many a PPI claim as it has always been the customers right to shop around for the right policy.
The personal finance world and, in particular, PPI is now a far safer place for the customer following the introduction of the new rules, and if you think that you may be elgible for seeking compensation we suggest you seek the help of a solicitor in what can be a confusing legal sector.
