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PPI Info

Payment Protection Insurance (often known simply as PPI) is a type of insurance cover added to financial products. Sold by most banks, building societies and other lenders it is usually marketed alongside loans, mortgages, hire purchase agreements, credit and store cards. In principle the insurance is designed to act as a safety net for the customer by stepping in to take over loan repayments if the policyholder is unable to work due to redundancy, sickness or accident.

PPI info: why has PPI been so heavily criticised?

In theory, PPI is a valuable cover that provides protection from financial hardship, unfortunately there are many problems with the cover and it has become notorious in recent years. Two high profile investigations by The Financial Services Authority (FSA) and The Office of Fair Trading (OFT) have resulted in many lenders being given significant fines and the industry as a whole has been warned it must improve standards

PPI info: The main issues

  • (I) The cover can be very expensive
    The cost of a loan PPI policy can range from 13%-56% of the original loan value. This could mean an additional £1,300- £5,600 on a £10,000 loan - plus interest. Cheaper cover is often available elsewhere, but most lenders fail to give policyholders adequate PPI info and so many are not aware there is choice available. PPI on credit and store cards is calculated slightly differently. Typically, customers pay around £1.50 per month per £100 owed on their account. This may sound like a small amount, but if you owe £10,000 on your card that could be £150 a month - that's £1800 a year!

  • (II) The cover rarely provides the type of protection the policyholder expects
    PPI policies have a high number of exemptions meaning there are many circumstances that are not covered. Most notably there are many exemptions concerning common health conditions. For example, many policies do not cover: back pain, stress or depression. Most policies also only cover the minimum repayments for a maximum of one year. Unfortunately, this means many people pay for expensive cover that subsequently proves to be of little or no use to them when they need it most. The good news is if your lender failed to give you adequate PPI info you could make a claim.

  • (III) The cover has been frequently mis-sold
    The FSA and OFT investigations revealed many failings in the way in which PPI was being sold. Across the industry it found many lenders had not put in place systems to protect customers from being mis-sold an unsuitable policy and staff had not been fully trained. High rates of commission and incentives also meant many salespeople were using unfair, high-pressure selling techniques and mis-leading customers by giving them incorrect or insufficient PPI info. Other ways in which PPI was mis-sold include: policies being sold to people whose circumstances made them unsuitable, policies added without the customer's knowledge and policies being sold without terms, and conditions or costs being fully explained.

PPI Info: How do I make a claim?

If you believe you have been mis-sold a PPI policy making a claim is easy. Simply fill out the quick claim form above and we will send you out everything you need to get started. We work on a No Win No Fee* basis and could resolve your claim in just 8 weeks. We have already helped more than 60,000 customers and reclaimed more than £50 million. In addition to reclaiming all premiums paid we also aim to claim an additional 8% in interest. If you have any questions our customer care team is always on hand, just call 0207 471 2000.

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Belmont Thornton Limited is regulated by the Financial Conduct Authority in respect of regulated claims management activities; FRN:838450

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

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