Payment Protection Insurance (PPI)
PAYMENT PROTECTION INSURANCE (LOANS AND CREDIT CARDS)
Payment Protection Insurance (PPI) is often sold alongside credit agreements and is meant to protect the borrower against the risk of being unable to make repayments in the event of unexpected circumstances such as an accident, sickness or unemployment, unfortunately it often fails to do this.
If you've taken out a mortgage, a loan for a kitchen or a car, applied for a credit card or consolidated your debts, payment protection insurance will almost certainly have come into the equation. PPI can be helpful for some people but government figures suggest they represent a tiny minority. Statistics reveal only 4% of people ever claim on their PPI policies and that one in four of these claimants is refused. Small print exclusions and administrative nightmares are usually to blame.
Payment protection insurance can also be amazingly expensive. The Citizens Advice Bureau reports that PPI premiums can add between 13% and 56% to the price of a loan. Payments can also carry high interest charges when lenders add insurance charges to the loan total.
Another worrying factor is that you might have payment protection insurance without even knowing about it. Some unscrupulous salespeople automatically include payment protection insurance in the quotes they gave for monthly loan repayments.
How much is PPI costing you?
|
CAB table of premiums with and without PPI
|
|
Loan Type
|
Loan Amount
|
PPI Premium
|
Premium as
% of total loan
|
|
Unsecured personal loan
|
£8,933
|
£2,217
|
25%
|
|
Unsecured personal loan
|
£11,000
|
£5,133
|
47%
|
|
Hire purchase for car
|
£5,059
|
£2,157
|
43%
|
|
Hire purchase for car
|
£6,895
|
£2,317
|
34%
|
|
Unsecured loan
|
£5,600
|
£744
|
13%
|
|
Secured loan
|
£25,000
|
£12,127
|
49%
|
|
Secured loan
|
£35,000
|
£10,150
|
29%
|
|
Conditional sale for car
|
£4,300
|
£2,394
|
56%
|
|
Unsecured personal loan
|
£13,000
|
£3,367
|
26%
|
(Source Citizens Advice Bureau evidence report findings Sep '05)
Why Should I use EMCAS for my Payment Protection Insurance Claim?
We will reduce the hassle of making a claim by taking on all the workload, including form filling, telephone calls and writing relevant letters.
You will have a specific claims number and a specific claims manager who will look after you during the claims procedure.
We are specialist within the industry and we know the rules and regulations governing both the sale of policies and gaining financial redress.
Due to our organisational resources we not only make sure that we maximise the value of any claim but we also double check that this value has been calculated properly applying the RU89 rule as laid out in the Financial Services Act 1986.
If your claim is unsuccessful, were appropriate, we will take the claim to the Financial Ombudsman Service, where we will continue to represent you on a No Win, No fee basis.
You have nothing to lose and everything to gain.
|
