Many lenders out there promote PPI policies, and they make it sound like a winning situation for everyone involved. For the lender, it means that there is a way for them to be paid for the debt even if the borrower isn’t able to work. For the borrower, it means they aren’t going to end up in financial ruin if they aren’t able to work for particular reasons.
What they don’t tell you is the PPI information regarding the high premiums. It can be a shocker when you review your loan information and see how much they are going to charge you. It can be as much as 25% of the amount of money you borrow. Plus, they add in interest on that so your payments are more per month. The overall dollar amount you will pay by the end of your loan terms is unbelievable.
With credit cards, the PPI costs are usually 1% of the amount you carry as a balance on your credit card bill. That amount is added every single month and interest compiled on top of it. This is one of the reasons why many consumers find they pay and pay on their credit card bills but the balances hardly reflect that.
To add insult to injury, the other important PPI information that they don’t offer you has to do with the fact that because there’s a chance it’s a mis sold PPI policy, the cover is very poor in the end. They don’t tell you that most claims are denied when they are followed. Those that do get a payment on them usually get a very low dollar amount. This is much less than the consumer though they would be entitled to.
While a lender can offer a consumer PPI insurance, it is never mandatory. It can’t be added into the loan without the knowledge of the consumer. This is why there are documents that have to be signed. Keep in mind that if you sign them you are agreeing that you have read the terms and agree to them. You can’t turn around later and say you didn’t know what you were paying for. This PPI can be claimed back with a PPI Claims no Paperwork claim, there are a few companies on the internet that offer this service, but always try and find the best ppi claims company you possibly can.
There is new PPI information for 2016 that will be beneficial to consumers. This law states that lenders can’t sell this type of policy anymore when a person is completing the paperwork for their loan. Instead, a waiting period of at least 7 days must occur before such an offer for cover can be made.
Most consumers don’t realize it, but they can ask a lender to remove the PPI policy from their loan. This is important information because if you didn’t understand what you were getting involved with initially, you don’t want to continue paying on it once you have learned the facts about it.