Millions of people across the planet will be looking to buy a property this month: there is a large, long list of things to think about.
Finances, mortgages, loans, rates, home insurace (the list goes on and on)
One product that may be offered to you is one known as “Payment Protection Insurance” (PPI)
What’s This “Payment Protection Insurance”?
PPI is an insurance product that protects you from outgoing bills & payments, in case there is an unforeseen circumstance where an individual finds themselves unable to make a payment, it protects them from further action.
On the surface, PPI seems as though… in principle it’s a great product, thats because in principal… yes it is useful, however what the buyer must be aware of is the way in which this product is being sold to them, and in fact, do they actually know they could be buying this without even knowing about it.
Enter the “ppi scandal”.
What Is The PPI Scandal?
The “PPI Scandal” is the single biggest case of financial miss-selling the United Kingdom has seen in over 100 years, it involves & implicates all of the major banks & many of the non-major brokers & lenders, there are no less than 80 different companies in the UK that have miss sold more than 50 million ppi policies between them, & many of these mis-sold policies have been bundled into mortgage arrangements (hence how it applies to home buying).
How Has PPI Been Miss Sold Into Mortgages?
It has been included in the small print without the consumer sufficiently notified, it has been bundled in without the inclusion of paperwork, it has been sold to people under a false pretense & much more…
In fact, the reclaiming of this compensation has grown into a huge industry all by itself, this ppi claims management company is one of the better examples of the more ethical ppi claims firms http://ppiclaimsservice.co.uk (they offer true no win no fee arrangements & charge a low fee).
However, back on to the core purpose of this article… there has been more than 1m mortgages in Britain that have had this insurance bundled into policies without the consumers’ full consent, so as the buyer (if you procure finance to buy property like most people), will need to be dilligent & READ THE SMALL PRINT!! Before you make your purchase decisions & reach a closure on any agreement.
How Can I Avoid Being Miss Sold PPI?
You can explicitly state at the point of commissioning the mortgage that you want no payment protection insurance included in the agreement, you have no need for it & you want to have a full understanding of the loan policy from top to bottom.
If I Have Been Sold PPI, Is It The End Of The World? Or Can I Get A Refund?
It’s no tragedy, only an inconvienence, the reason for this is because, if you were sold the insurance when you didn’t need it, you can usually claim it back, however this procedure can take months & can be a lot of hard work if you decide to claim the cash alone, however companies (Like the one mentioned above) can help you, but just make sure they are reputable.
“Gibson Blake Claims Management Ltd” has a good track record of successes.
However some of the banks will contest a ppi claim more than others, so it is better for you if you avoid ppi policies in the first place if you don’t need them.
Good luck with the new home & heres’ hoping it runs smoothly with no snags or mis-selling