The Benefit of Using a PPI Claims Company
For millions of UK citizens who have had payment protection insurance (PPI) as part of their mortgage, loan or credit card payments. The added security of knowing that if an unexpected event prevents you from making your monthly loan payment is covered by PPI is very reassuring.
However, recent news has revealed that many bank and lending institutions have abused the PPI system, either charging their customers PPI rates higher than the law allows, telling their customers that PPI was mandatory and in some cases charging PPI without their customer’s knowledge.
The government has recently set up a reclaim system that helps people who taken advantage of to reclaim their money back. However, like most government systems the filing process is somewhat complex and a single mistake can mean having your PPI claim rejected.
For those who do not fully understand how the PPI reclaim system works or cannot spare the time themselves to go through the process, hiring a professional PPI claims company does offer some strong advantages. What follows are just a few reasons that demonstrate the benefit of using a PPI claims company when trying to get your money back.
Professional, Experienced Service
The best benefit of using a PPI claims company is the experience and knowledge they bring in filing PPI claims. A professional company has years of experience which means they know all the proper procedures so that everything is done in order.
A professional company will file the right paperwork that is completely filled out correctly and in the proper order so that the PPI claims process can proceed forward. By using a professional company, you greatly reduce your chances of having a single mistake set back your PPI claim. The professionals understand what is needed in order to get your PPI claim on the right track.
No Money Upfront
The PPI claims company will not charge any money upfront for their services. Typically, they will take all of your information and evaluate whether you have a legitimate PPI claim. If you do not, then you are not charged any money. If the company believes that you do have a legitimate claim, then they will do all the work and if it is rejected by the government, they still will not charge you any money.
However, it is exceedingly rare than any professional PPI company will file a claim without almost certain knowledge that you will get your money back.
Small Percentage Charge for Successful Claims Filing
This is how PPI claims companies make the money to cover their expenses. Generally speaking they do take a small percentage of the money from the return. That means when the check is issued, it will have a percentage deducted by the PPI claims company before you get the rest of the money that is owed.
In most cases, the percentage is reasonable and certainly well worth the expense of filing for a PPI claim if you are too busy to handle all the work yourself. The benefit of using a PPI claims company and the percentage that they charge outweighs the risk of the time and money wasted in trying to file a claim that may not be legitimate or full of mistakes.
Reasons Why PPI Was Mis-Sold
Payment protection insurance also known as PPI is a great tool used by lenders to ensure payments of debts – no matter what happens to the debtors. When a borrower loses his job, dies or is disabled the loan is paid by the insurance company.
The beneficial feature of PPI
PPI can easily benefit both the lender and the borrower. The lender is assured to get back the lent money and the borrower is worry-free because the loan will be settled by the insurer in case of any unfortunate incident. PPI is security for both parties. Some borrowers do not want to be charged PPI because this is an additional expense for them. But when the amount borrowed is large the insurance provided is a good protection against any mishap.
History and Reasoning behind Mis-sold PPI
Despite the beneficial feature of payment protection insurance, various PPIs were considered mis-sold and there arose a serious scandal about this in the United Kingdom. As a result, lenders were obligated to refund the premiums paid by the borrowers. The problem regarding PPI arose because there was a belief that there was some deception involved in the selling of many policies. According to various surveys, around 20 million PPIs were sold up to May 2008 and almost 40 percent of the people were actually unaware of the fact that they were made to pay for such policies or they actually had such policies.
Some borrowers were made to pay the insurance by making them think that it was a requirement for a loan. Some lenders did not even tell the clients that part of their monthly payment was going towards PPI. These lenders merely added the cost of insurance to the amount to be paid. There were even cases when the borrowers were forced to buy an insurance that was more than the amount of loan.
PPI as an additional expense added burden to some borrowers who could have done without such insurance. This turned out to be an easy way of money making for some lenders. Most people who came to know how these policies were sold to them started to think of PPI as one way for the lenders to earn more from the loan transactions. The disputes arising out of mis-sold PPIs forced the authorities to intervene and lenders were asked to make refunds on mis-sold PPIs.
Credit Card Protection Plan Reclaim 2013
The card protection plan, a way to help protect card holders in case they could not make payments on their balance has become one of the biggest financial scandals in the UK. For a growing number of UK citizens, they are currently pursuing a card protection plan reclaim effort to get their money back.
The card protection plan is basically insurance that credit card holders can elect to pay to cover their card payments in case of an unexpected event. Such unexpected events include becoming laid off or unemployed suddenly, becoming injured or ill and being unable to generate income. These are the most common reasons why people cannot pay their credit card bill.
In these cases, the card protection plan steps in and makes these payments until the card holder can either recover or find new employment within a pre-set period of time. For many UK citizens, the card protection plan provides a valuable resource that can be used to protect them against unexpected events.
However, many bank and lending institutions have abused the card protection plan service in a number of ways that has led to the overcharging of billions of pounds. Such abuses have come to light and despite the sheer number of abuses recorded, it may only represent a fraction of the true size of this scandal.
Along with payment protection insurance for mortgages and loans, the card protection plan operates under the same principle of charging rates to cover these protective plans. It appears however that perhaps millions of people were overcharged or had their plans misrepresented which resulted in the loss of a significant amount of money.
For these people who have been taken advantage of, the British government has stepped in and provided a program that allows for people to file a card protection plan reclaim. These reclaim efforts do have some requirements in order to be fully recognized so that the money can be returned.
Essentially, a copy of the original credit card contract and the latest credit card bill are in order. Both of these documents will show the following;
– Actual proof of card ownership and relationship to the lender
– The information on the original contract and typical credit card bill
– The differences between both the bill and what was stated on the contract
These differences are important because they can indicate if the lender charged too much money for the card protection plan or misrepresented the terms that were stated. Furthermore, there are other items that can be essential to discovering if you are owed a card protection plan reclaim.
– Did the lender inform you that CPP was mandatory?
– Did you fall into the group that required CPP for your card?
– Were you asked in other insurance would cover your card payments?
– Were you told that CPP would improve your credit rating?
If you were told any of these things, you may be in line for a proper reclaim of the money spent for card protection. See the professionals to insure that you were not taken advantage of and if you were, that you have the proof needed to get your money back.
Interest Rate Swap Mis selling 2013
While the payment protection insurance scandal is still being felt across the UK, another scandal is growing on the financial scene as interest rate swap mis selling is becoming a very significant issue. With banks now already setting aside billions of pounds, they are now forced to set aside more money to cover this new interest rate swap mis selling scandal.
What are Interest Rate Swaps?
Basically, an interest rate swap is a financial product that was sold to a great number of businesses in conjunction with their loans to protect them against rising interest rates. In theory, this type of swap seemed practical on the surface since the value of the product would act as a hedge against the rise in interest rates.
What Went Wrong with the Swaps?
While the swaps were described to be similar to insurance in their effect, they were actually derivative products that actually backfired in their effect. When the recession hit, many of the companies that participated in these swaps were left with rates that were unexpectedly very high.
Who Stepped In?
Britain’s Financial Services Authority conducted a series of 173 tests on these interest rate swaps that were based on the actual transactions that occurred. In over 90% of the cases, it was revealed that at least one or more regulatory requirements were violated.
Furthermore, the sophistication of these swaps meant that many of the firms that didn’t conduct any in-depth research were simply not clear about the potential effects or even what they were truly buying into when engaging in these swaps.
Why are Larger Businesses Complaining about the FSA caps?
The Financial Services Authority has imposed a 10 million pound cap on all claims made against the lending institutions for the mis-representations of their interest rate swaps. While the losses of many businesses do not reach these heights, the larger companies that were mis-sold the products lost considerably more.
However, the Financial Services Authority deemed that these larger companies had the resources to contact lawyers and financial experts that would have warned them about the dangers about these interest rate swaps. Although it is admittedly debatable that lawyers from smaller provinces or even many accountants would have been able to predict the impact of the recession and its effect on the value of these products.
Of course, the cap limit means that the banks and lending institutions are protected as well from losing far more money to the larger companies that bought into the interest rate swap mis selling products.
What has been the Impact?
Basically, many of these businesses where hit harder than those who were mis sold payment protection insurance in terms of the impact alone. Many people and businesses that invested in these interest rate swaps lost practically everything as these products were simply toxic in their effects.
For the smaller investor, they are going to be compensated as their losses are less than the 10 million set by the FSA. But for larger institutions that lost so much capital, they will not be fully compensated for their losses and the result may take years to sort out.
Financial Ombudsman and PPI
The payment protection insurance (PPI) scandal has only grown in proportions in the past year as financial ombudsman and PPI are now becoming linked as thousands of people seek relief from through this time-honored service.
What is PPI?
Payment protection insurance is designed to help borrowers who owe money on mortgages, loans and credit cards cover their monthly bills if they are unable to do so themselves due to an unforeseen event such as an accident, illness or becoming unemployed.
Essentially, PPI was insurance to cover unforeseen events and to help protect the credit rating of borrowers in case the unexpected happened. Millions of people currently have PPI covering their loans and some loans have PPI requirements depending on the circumstances.
What is the PPI Scandal?
Over the past few years it was revealed that many banks and lending institutions in the UK has mis-sold PPI to thousands of borrowers, charged interest rates that were too high or in some cases actually charged borrowers for PPI when it was not requested or required in the loan. While the sheer number of ways PPI was misrepresented was considerable, the most popular abuses of the PPI system was as follows;
– PPI interest rates were overcharged
– Lenders informed borrowers that PPI was mandatory when it was not
– Borrowers were informed that they couldn’t get PPI coverage for their loan from another source
– Loan length and value did not match PPI length and value
– Borrowers that paid loans off early were not reimbursed for PPI payments.
Every day, people who have had PPI charges are discovering that they have been taken advantage of and are seeking help from a variety of sources. One of the most popular is the Financial Ombudsman Service.
What is the Financial Ombudsman Service?
The Financial Ombudsman Service is designed to resolve disputes between customers or borrower and the financial institutions of the UK. This service has been one of the first places many borrowers have gone to address their PPI disputes.
Currently, the Financial Ombudsman Service is taking on new employees to deal with the growing number of people who have disputes about the PPI charges to their loans. Despite the unprecedented levels of complaints, currently reaching over 5,000 per week, the number of people who might have been taken advantage of may be ten times the number that are complaining now.
This is because the PPI abuses were so broad and massive, yet subtle in their effect that most borrowers are generally not aware that they have had money taken from the illegally. However, this scandal has now become so widespread that people who are currently unaware are now rechecking their loan documents and taking their complaints to the Financial Ombudsman Service.
Currently, the largest banks in Britain have allocated over 12 billion pounds to cover the disputes from the PPI scandal. The Financial Ombudsman Service will handle many of the PPI complaints from customers who believe that they have been taken advantage of by this process over the years.
Financial Ombudsman Service
In England, disputes between financial institutions and borrowers are generally handled through the Financial Ombudsman Service. Millions of UK citizens have taken their disputes to this service in order to have them resolved in a fair manner.
What is the Financial Ombudsman Service?
Established in 2001 as a result of the Financial Services and Markets Act of 2000, the Financial Ombudsman Service is designed to settle disputes between consumers and UK-based companies that provide financial services, such as banks, building societies, insurance groups, investment companies, financial advisors, finance lenders and the like.
How Does the Process of Filing a Complaint Work?
Essentially, if a customer has a dispute or is unsatisfied with the service, they first must give the institution that handled the loan a chance to address the complaint itself. These businesses have 8 weeks to resolve the complaint on their own. If they do not or if the customer is unhappy with the offer, then they can take their complaint to the Financial Ombudsman Service.
How does the Financial Ombudsman Service address complaints?
Basically, the ombudsman will make the decision based on all the information available. From relying on the relevant law, regulations, rules and standards that apply combined with all the information at hand, the ombudsman then gives a final decision that is fair to all parties involved.
While independent, it has been reported that over 60% of the cases are generally ruled in favor of the customer, although some have questioned the amount of money that is awarded in such disputes especially when it reaches the compensation cap which helps keep businesses from paying out so much that it puts their finances in distress.
Over 90% of all customer complaints handled by the Financial Ombudsman Service are settled in the early stages which is a more informal setting where both the customer and the business work together to reach an adequate conclusion.
Does the Financial Ombudsman Service handle PPI claims as well?
In what is turning out to be the single largest financial scandal in recent history, PPI claims are surpassing record amounts at the Financial Ombudsman Service. In fact, so many complaints have been catalogued that the service is adding over 1,000 new staff and employees to handle the workload.
Naturally, one of the major complaints by customers has been that this services is taking too resolve PPI disputes. Given the sheer magnitude of the PPI scandal, such complaints where expected. It is estimated that over 27 million PPI policies were sold when complaints about overcharging began to surface. Given that only a fraction of the total number of people who might have been mis-sold PPI have filed complaints, it can be fairly estimated that many more will file their complaint in the near future.
The Future of the PPI Scandal and Financial Ombudsman Service
For the foreseeable future, it appears that the Financial Ombudsman Service will continue to add staff and employees to handle the PPI cases. The sheer number of people that have been affected will mean that the service will be handling PPI cases for several years to come.
Have You Been Overcharged Interest on Your PPI
Payment Protection Insurance (PPI) has been used for mortgages, loans and credit cards to protect borrowers if they are forced to miss a payment. However, news of how certain bank and lending institutions over the years have misused the PPI system to their own benefit has allowed borrowers to reclaim much of their PPI payments.
There have been a number of abuses in the PPI system over the past decade. However, one of the most prominent has been interest overcharging. Essentially, this means that lending institutions have overcharged on the interest rate that is allowed by law. In some cases, the overcharging was up to four times or more of what was allowed by law.
The standard interest rate for PP insurance is 8%, which means that banks and lending institutions could charge 8% of the total amount of money allocated for PPI coverage. This was a way for lenders to help cover the cost of PPI insurance. However, there were many abuses to the system which allowed some lenders to overcharge. Here are a few examples of how these lending institutions abused the system so they could overcharge.
Telling Customers that PPI coverage for their loan was only available at their institution.
As a borrower, you can obtain PPI insurance for your loan from any qualified institution no matter where you got your loan. By the lender telling you that PPI for your loan was only available at their institution, they might have charged you rates that were over and above the 8% as required by law.
Informing their Customers that PPI was mandatory.
This was another common tactic that was used by lenders abusing the system. While PPI is mandatory for certain types of loans, it does depend on the financial situation of the borrower. The law explicitly outlines what types of situations require PPI. In many cases, people who were told that PPI was mandatory were simply not true. In turn
How to discover if You were Overcharged
If you feel that you might have paid too much for PPI coverage, then there is a simple method to find out if you were overcharged. Take your last monthly loan payment statement and see the breakdown of what was being charged. Your PPI interest should be separate from your loan and other charges.
If you do the math, the total percentage should be around 8%. If it is much higher, you should have another person double check your figures. You can at this point start seeking professional help if you feel that you were overcharged.
What to do if you believe You were Overcharged
There are professional institutions that are specifically geared towards getting your money back if you were subject to interest overcharging. The reputable firms that handle PPI reclaims will not charge you upfront for their service. In fact, if they find that everything is in order, you were charged the proper amount and the PPI was legitimate, you do not have to pay any money for their services.
However, if you find that you were the subject of interest overcharging, and then you can have the professionals file reclaim PPI proceedings for you or you can do it yourself.
Which Banks and Financial Institutions Were Involved in the PPI Scandal?
PPI is now referred to as the UK’s biggest financial scandal of all time, but how did payment protection insurance begin and who were the major players in this great scandal that has rocked the UK’s financial industry? The PPI, by all intents, began as a genuine attempt to cover borrowers against any future inability to pay up loans ranging from mortgage, credit card debts, or unsecured loans. This was done in case those customers would be unable to settle those debts in the future due to factors such as illness and unemployment which might lead to loss of income.
So this was a standard insurance product but it was “mis-sold” by slick insurance salesmen and frontline staff as most customers were not aware of what they were paying for, and in some cases customers were even pressured into purchasing the PPI claims.
Banks involved with the scandal
All the major UK banks and building societies sold PPI often in cooperation or collusion with affiliated insurance companies. Those banks are now represented under the umbrella of British Bankers Association. Some of the top insurance companies and brokers were also involved in the sales of PPI include Aviva Life Insurance, Prudential, Friends Life, Phoenix and Royal London. Amongst the British Banks, Lloyds was one of the leading distributors of PPI along with HSBC, RBS-NatWest, Co-op, Santander, Nationwide, Clydesdale, and Barclays. Here are a few of the banks that distributed the PPI products to their customers and are currently mired in multi-billion pound PPI compensation claims.
Lloyds was one of the largest distributors of PPI services in the UK and the British bank received the largest number of at over 860,000 PPI complaints in the first 6 months of 2012. Lloyds has paid out over £2 billion so far and is expected to run out of its allocated PPI compensation provisions in November this year.
Barclays was another major distributor of PPI to its clientele and has so far received the largest number of individual compensation claims at 442, 266. The bank is expected to run out of its PPI provisions by December this year.
Royal Bank of Scotland
RBS has received 362,869 PPI compensation claims and its PPI compensation provisions will likely run out by March 2013
HSBC is also amongst the major banks that actively distributed PPI although it has not been faced with the scale of PPI compensation claims as the other big three. At the current rate of compensation, HSBC is expected to deplete its provisions by August next year.
Many other smaller banks that are members of the British Bankers Association along with building societies were also involved in the PPI scandal although not on a scale similar to that of the biggest financial institutions in the UK.
Is It Difficult To Make A Claim For PPI Compensation?
The declaration that PPI had been mis-sold created a big issue among people who had been paying out for this type of insurance. Many people are constantly trying to claim their money back.
Two ways to claim PPI compensation
- Make the claim through a claims management company.
- Make the claim yourself.
Using an agent from a Claims Management Company
You can go to a no win no pay agency. Once you contact an agent to handle your PPI claims, your hired claim adviser will begin to investigate your case. It is paramount that you co-operate with your agent, providing this expert with important documents and data that will support your claim.
The hiring of your claims company tends to make the process smooth. In many instances, the payout is made faster. These experts know what they are doing. so the insurer or bank may not be strict in screening the claim. Furthermore, the claims company has solicitors that provide advices to the clients or claimants. This makes the claim correct and the insurer or bank can be forced to compute the right amount. However, the difficult part is the payment of consultant fee which can amount to 25% of the total claim.
Making a claim independently
This just means that you are claiming the PPI benefits by yourself. While claiming the benefit under this scheme, the first thing you need to do is to compile your documents, receipts and evidences of payment that are related to the loan agreement. This will prove that payment protection insurance was collected. This can be a tough job as the lender might not have provided you with copies of the PPI – loan transactions.
When you have all the paperwork, you need to contact your creditors in order to file your request for PPI refund. This is another tricky endeavor because the bank may dispute your claim. There are times when you have to even go to court to prove your stand. This makes you lose interest in your claims because you will have to employ a solicitor.
The other problem here is that the bank may not pay you the right amount or may give you a lower amount. Then if ever the bank pays without resorting to court, the payment process can get stretched for several months.
Claiming your PPI refund without the help of a professional company can prove to be difficult. Just pay a small fee to your company and remain hassle free. If you do not want to pay the fee, you will have to endure expected difficulties and long process.
What Happens When Your PPI Claim is Denied?
Payment protection insurance (PPI) is used by millions of UK citizens to protect them from missing their mortgage, loan or credit card payment when something unexpected happens. An injury, illness, becoming unemployed or other reason that is covered means that the loans will still be paid on time.
However, it was revealed that in recent years many bank and lending institutions abused the PPI system and overcharged their customers. The courts and the government have stepped in to provide a system for borrowers to get their money back. For most people, the PPI reclaim process is successful and they have received what was rightfully owed to them. But what happens when your PPI claim is denied?
PPI Claims Denial
There can be many reasons why your PPI claim denied. The first step is finding out why your claim was denied so that you can take the next step. In most cases, the reasons given for denial may be quite apparent, such as the government finds your claim to not be legitimate. However, there may be other reasons that are more hidden such as the following;
– Filing the wrong information
– Not filing the information in the proper order
– Making a mistake on the information that you filed
– Leaving out important information
Such mistakes are actually common as the forms used can be a little difficult to understand. For many people who don’t have the time or energy to fill the forms out correctly, they can make a simple mistake that gets their PPI claim rejected. So what are the steps to take when what happens when your PPI claim denied?
Go Over the Reason Why it was Rejected
If there was a specific reason that was given why the PPI claim was rejected, such as a particular form was not used, certain information not included or numbers that didn’t add up you can make that correction yourself and send the paperwork back in.
However, in many cases it may not be exactly clear why the PPI claim was rejected. In this case, it is advisable to go over your forms again to see if you can spot any mistakes, though even that might not provide you with the clues needed to file a successful claim. In these circumstances, it is important to take the next step and seek the services of a professional PPI claims company.
Seek Professional Help
A professional PPI claims company will go over your paperwork free of charge to see if mistakes were made in filing. If they do find something that is wrong, then they can file another claim for you and only charge a small percentage of what you were owed. If the government still rejects the claim, then at the very least you are not out of any money for the effort.
By using a professional PPI claims company, you have a group of professionals whose best interest is in making sure your PPI claim stand the best chance of success. When facing a PPI claim denied, you should turn to the professionals who can offer their services to help you get your money back.
Barclays PPI Claims 2013
Want to make a Barclays PPI Claim ?
If so, youve come to the right place!
First of all we would like to make it clear that we have no connection whatsoever to Barclays Bank Plc or any of its subsidiaries.
We are PPI Claim Management Company and we solely deal with mis-sold PPI and are very successful at winning back unfair charges and premiums on loans taken out with Barclays, or their subsidiary Firstplus. If you have been mis sold Barclays PPI then we could reclaim all charges in full (premiums plus interest), on a no win, no fee basis! Our success rate with Barclays PPI claims is 100% so if you were mis sold Barclays PPI (and many people were) then contact us right now and you could look forward to good news very soon!
Getting back (reclaiming Barclays PPI) does not affect your loan which gets restated after the mis sold PPI has been returned to you BUT there is one big difference, the total amount of your loan is much less, and so are the new monthly repayments!
Sounds to good to be true? Well maybe, but it really is true. Many people have found that they were unfairly sold PPI and as such are entitled to reclaim all charges as stated above, although the case may have to be argued with Barclays to get the settlement you deserve; thats where we come in!
With absolutely no hassle on your part, if we take on your case we will deal with Barclays and complete all the necessary paperwork as well as handling the legal issues on your behalf. Simple, once you engage us you just sit back and wait for the repayment cheque!
If you have been charged unfairly why not reclaim PPI ?
You pay us nothing if we are unsuccessful but you should know that we have already achieved substantial refunds for many of our clients.
- Contact us if you think you have a PPI claim
- We claim back Barclays PPI mis-sold on loans
- We claim back Barclays mis sold PPI on mortgages
Don’t lose out, we are expert at reclaiming PPI on a range of financial services and we work on a No Win, No Fee basis. All you need to do is contact us and we’ll investigate whether you are entitled to reclaim your PPI.
Reclaiming PPI mis-sold does not affect your credit rating and it may be that you simply replace your original policy with one that offers the same cover, but at a lower price. Why pay more than you need to?
Recover Your Money Ltd is a leading UK financial claims company registered with the Ministry of Justice. We are here to assist you with claiming back money you’ve paid for unfair, overpriced, and mis sold loan insurance. PPI reclaiming is not as easy as some people think, we are specialists in this field and will succeed where others may fail, so please do give us a call or email your enquiry to us using one of the forms above.
We can quickly assess any PPI claim on your behalf and if your Barclays PPI was mis sold, let you know what sort of lump sum repayment you can expect.
Dont forget, reclaiming Barclays PPI DOES NOT AFFECT YOUR LOAN WITH THEM, OR YOUR CREDIT RATING.
So contact our friendly advisors today, youll be glad you did!
Remember, we do not charge anything up front and work on a NO WIN, NO FEE basis.
Business Loan Overcharging
Banks and lending institutions in the UK have not enjoyed much in the way of good publicity lately. With the recent scandals involving payment protection insurance and interest rate swaps that have cost businesses and individuals billions of pounds, it perhaps it not all that surprising that many of these lending institutions have also engaged in business loan overcharging.
From simple loans to highly complex financial services, many of these banks have either intentionally or unintentionally charged higher interest rates for loans or have hit borrowers with higher fees than the law allows. Unfortunately, given the nature of such overcharging practices it may be difficult for the average borrower to see how they are being overcharged.
While some banks have blamed this on technical issues which has born out to be true in some cases, the sheer extent of the number of overcharging incidents can hardly be accounted for by just technical issues. This trend indicates that business and individuals who are receiving these loans need to take substantial steps to avoid being overcharged.
One reason why many instances of business loan overcharging is performed can be laid at the feet of the financial institutions themselves who do not review all the facts and often overlook many of the rules and regulations that are supposed to guide them in providing proper loans. Whether due to carelessness, oversight or incompetence, the truth is that these types of mistakes happen far too often.
How Can Individuals and Businesses Avoid Overcharging
Here are a few ways to avoid being overcharged on your next business loan. By taking a little extra time and acting promptly, you can save yourself a considerable amount of money.
Double Check the Interest Rate: Before you sign the dotted line, double check the interest rate and the fees that are being charged as well. By fully reading the contract and the stipulations that the loan has, you can avoid making the mistake of being overcharged.
Act Quickly if You See Unusual Charges or Interest Rates: First, you should have a full copy of the loan contract with the pertinent information highlighted so you can then double check it against the monthly payment. Once you see something out of line occur, immediately talk to the financial representative and discuss that particular issue.
Remember that this could very well be a technical glitch, so don’t get angry. What you need to do is calmly present the facts and let the representative take it from there. If it turns out to be a technical glitch or mistake, then it will be corrected and you will not be overcharged. However, if it turns out to be something more serious, then you need to meet with the people in charge so you can get this straightened out.
By being a little careful, doing some double checking and being proactive, you can avoid many of the pitfalls of business loan overcharging. Just remember to keep a cool head and focusing on catching the overcharges before you or your business actually pays for them can save you a considerable amount of money.
Can I Claim PPI Without Having My Paperwork?
Today, thousands of people are reclaiming payment protection insurance (PPI) payments they made on their loans due to fraudulent efforts by banks and lending institutions that overcharged for their services. For at least the past six years, certain banks and lending institutions have overcharged for PPI, informed that PPI was mandatory for certain people when it wasn’t or even charged PPI payments without the knowledge of the borrower.
What is PPI?
Payment protection insurance is designed to protect borrowers when they become unable to make their monthly loan payments. If a borrower becomes injured, suffers from an illness, becomes unemployed or is in some manner rendered unable to pay their monthly mortgage, loan or credit card payment, the insurance kicks in and makes the payment for them until they can get back on their feet.
How did Banks and Lending Institutions Abuse the PPI System?
In the mid-2000s, certain banks and lending institutions began abusing the PPI system through a number of different means;
– Telling borrowers that PPI was mandatory when it was not
– Informing borrowers that they could not obtain PPI from another source
– Overcharging the interest rates on PPI
– Not matching PPI to the value or length of the loan
– Placing PPI on those who did not qualify
– Not fully informing borrows about the full effects of PPI
It is estimated that the fraudulent practices of these banks and lending institutions cost borrowers roughly 8 billion pounds, if not more. Currently, less than half have been reclaimed by borrowers, although more of them are filing every day.
Claiming PPI with no Paperwork
Is it possible to make a legitimate PPI claim when you have no paperwork for verification? Unfortunately, the answer is no as the government program requires that you have at least some proof to back up your claim. The two vital pieces of paperwork that you need are a copy of the original loan and at least on monthly loan payment bill.
The copy of the loan will spell out the terms of the contract and show if PPI was included. The monthly loan payment will indicate the amount of money paid for the loan, PPI and the interest rates. From this information, it should be fairly straightforward to know whether you were charged too much or wrongly charged for PPI insurance coverage.
If you do not have a copy of your original loan, you can try to obtain one from the bank or lending company that make the loan in the first place. You can also ask to see if they have a copy of your last monthly payment as well if you are no longer paying on the loan. If you are still paying on the loan, then the next monthly bill in the mail or online should work.
To get back the money that is owed to you, the first step should be to establish whether you are entitled to reclaim your PPI payments. This means that you will need the necessary paperwork to insure that your PPI claim can be validated.