Today, the Financial Services Authority (FSA) had established new claims guidelines and have won the United Kingdom a £4.3 billion compensation package for all those mis sold PPI. PPI is a useful insurance product. However, in 2005, the FSA determined that insurance brokers and other commission-based financial advisers have mis sold PPI on almost every loan, mortgage or credit card. Millions have successfully reclaimed the thousands of pounds they’ve spent for mis sold PPI.
However, PPI has many different names in the banking industry. If you know that the function of the insurance a broker presents to you to be similar to PPI, chances are that it is a PPI. Today, single-premium PPI is still banned for sale. However, some may escape the jurisdiction of law. If an insurance broker or financial adviser presents you an insurance, take into consideration these tips before you agree to purchase the insurance.
1. An insurance policy is beneficial, but it also has requirements to be used. Insurance companies can only provide specific points in which they can financially help you. Have your insurance broker or financial adviser explain the insurance on their own way, then ask the following:
-the requirements of the insurance policy
-repayment amounts per month
-claiming age requirements
-documents required for claiming
Knowing these items can help you ensure that you’re eligible for the insurance. Mis sold PPI easily spread because of the trust people give their commission-based financial advisers. It is important that you know all the details to understand if you really need the insurance policy.
2. Be wary of your financial adviser’s payment scheme. Most financial advisers will not tell you directly how they earn from the insurances and sometimes, they covertly sell the insurance to you. They usually recommend its purchase to help your financial advancement. Most commission-based financial advisers earn through selling highest-priced insurances they have. It is important that you are ahead with your financial status to ensure the insurance complements your financial status. Don’t be afraid to argue if you think you’re right to refuse the insurance policy.
For more information about making a claim, you can contact claims handling companies or claims experts. Most of these professionals work on a no win no fee basis. It is important that you understand how to make your PPI claims to ensure success in recovering your money.