Payment protection insurance is often sold with things like credit cards, mortgages and business loans and it has to be said over the past few years it has been done without the buyer’s knowledge. Lloyds banking group have decided to stop selling PPI with these items. The complaints being received daily about PPI were a staggering 149 people on average every single day around spring time this year and some were going back to products they bought a few years ago.

The main problem doesn’t lie with the ability to claim upon the product, the majority of the complaints come from people feeling PPI has been miss sold. This will affect a number of branches as the Lloyds banking group including Lloyds TSB, Halifax, Bank of Scotland, Cheltenham and Gloucester and Black horse. These will now not be selling PPI with anything but will be producing a leaflet on PPI produced by the British Bankers association.

Peter Vicary-Smith, chief executive of consumer group Which? said: “Lloyds’ decision to stop selling PPI is a huge victory for consumers. Hopefully other banks will follow suit and we will finally see the back of this poor protection product.

“Now it is the beginning of the end for PPI, banks need to get back to the drawing board and offer their customers insurance products that actually protect them when they need it.”

PPI has seen a lot bad press of late with adverts campaigning that if you have been miss sold PPI you can claim it back but saying all this it can be quite useful if bought for the right reasons and fully understanding the insurance.

It may be unlikely that you fall ill or are unable to work but PPI can certainly help ease the strain if you find yourself out of work with a house and family to run.

Loans and lines of credit are incredibly popular and often necessary for consumers to spend and purchase the way they do in the marketplace today. Truly, within any given loan or line of credit established for any given reason, there are usually countless forms of interest and fees that are required to be paid while some of them are not as common or well known as others. PPI, or Payment Protection Insurance, is often never discussed or known with any given loan type which has provided the rise of mis sold PPI throughout the entire consumer base.

The statistics behind mis sold PPI are actually quite staggering and often unknown from consumers of loans today. In fact, quite often, there is often a complete lack of knowledge that this type of coverage was even financed with the loan to begin with. As such, one should truly know what to look for within this realm of financing fees.

There are quite a few very common loans and lines of credit where PPI is automatically built in and allows for an automatic fee schedule as well. Some of the most common forms are credit cards from stores, normal and conventional credit cards, and mortgage and auto loans. This form of insurance provides a basic amount of protection from the act of lost payments or those that are somehow misplaced.

One very common source of mis sold PPI is though store credit cards. Basically, the store entices consumers with a discount off of their purchase if they apply for and are awarded their specific line of credit. Within these policies are always PPI fees that are not usually disclosed on the actual main source of the application and fees disclosure.

Long term loans, including mortgage and auto, are always under conditions of varying degrees of PPI. Basically, these longer term loans are often outlived by the form of PPI built into these contracts. If the representative does not offer up different forms of PPI with this loan, this means that it has been mis sold.

Joint signers of loan agreements are actually those that are commonly not sold PPI agreements at all. Basically, the primary singer of the loan is the only one that is covered under any PPI agreement which makes it impossible for anyone else on the loan to file a claim. As this is never really known from those signing it, this makes the PPI completely sold incorrectly.

Those that are unemployed when a loan is taken out are those that are the most often the victims of mis sold PPI. Basically, if one has to file a claim and were unemployed during the loan origination, the claim will automatically be denied. This is quite often not disclosed during the loan process.

Self employed loan holders or those that own their own business are quite often mis sold PPI. Basically, these categories of people are not able to successfully file claims either. Thus, the PPI policy is often null and void while still paid for.

Looking for comprehensive info on how to reclaim your money on Mis Sold PPI? Get the exclusive low down now in our Missold ppi review.

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If you reside within the United Kingdom and were mis-sold payment protection insurance during the last six approximately many haven’t taken time to launch your ppi claims; it’s not past too far and this is the time to act. There are lots of very common mis-selling practices which are readily discussed in the news in print an internet-based; however many people are not aware the single-premium of ppi and how costly it ends up being.

Whenever a consumer enters right into a financial institution it’s the lenders obligation to do something in the best interest from the borrower or client. This is called their fiduciary duty; they also need to be clear and transparent in their communication and transactions using the borrower. The single-premium ppi cover is by far a breach of the duty, as it is not within the welfare of the borrower.

The single ppi fees are the entire cost of the cover that is then put into the actual borrowed amount of the borrowed funds. The borrower find yourself paying interest on not just the borrowed funds but also the coverage.

The primary causes of this breach with single-premium payment protection cover are as follows:

a. Overpricing is typical and may depend on 20 times the actual cost.

b. Can also add an additional 50% onto the actual cost, which can be thousands.

c. These premiums can’t be canceled and cannot be altered in any way.

d. Single-premium cover damages the consumers’ credit with the addition of additional quantity of cash to their owed listing.

e. When the single-premium ppi was added to a mortgage it will require away from the equity you might have in your house.

f. The customer pays the financing fee on this cover also it ultimately increases the amount of the loan.

g. Single-premium ppi is only good for five years.

h. Generally if the customer repays their loan the single-premium won’t be rebated with no refund will be presented.

Many banking and financial institutions are now getting rid of single-premium ppi because of the regulations and concerns that have been set through the Financial Services Authority (FSA), however, many lenders are still selling the coverage this way.

Millions of borrowers have won their ppi claims because of proven mis-selling tactics; the FSA has announced that the rate of ppi reclaims will continue to grow by the thousands for at least another five years.

If you are in need of advice or help claiming back ppi payments visit or contact industry experts at www.ukppiclaims.org.

Should you reside in the United Kingdom and follow financial news it is almost without doubt you have heard about the PPI claims controversy which has been on-going for about six . 5 years now. In the early 2000s the Citizens Advice Bureau took reports of unfair practices which were ongoing to the Office of Fair Trading. They stated that upon complaints and studies they investigated, over 80% of consumers whom were paying for payment protection insurance and assumed they were protected, were in actuality not. When these borrowers filed ppi claims due to illness or unemployment were turned down to receive their benefits for which they had been spending money on by the particular insurance providers.

These statistics led to one of the largest financial scandals in the United Kingdom till this day. Vast amounts of dollars have been spent by borrowers which were mis-sold ppi. The FSA has greatly fined many large and small financial institutions for their illegal activities.

Consumers whom feel they have been sold this cover are able to reclaim ppi and when the claim is founded can receive compensation for all their payments in addition to an 8% statutory interest. Unfortunately many if not completely the lending companies will be sending a generic denial notice towards the consumer without reading the complaint. Often, if the borrower is unaware of this practice, they will just drop their claim. The borrower ought to be diligent and realize they have further recourse; they are able to either write another more demanding letter towards the bank, or they can continue their claim should you take all necessary documentation to a UK ppi claims company or file using the Financial Ombudsman’s Service (FOS).

Listed below are a few of the explanations why the borrower can claim back ppi.

* Were told PPI was required to get a loan.

* The lending company or telemarketer used high sell tactics which made you are feeling pressured into accepting.

* You were told you had to buy on the spot, and not told you could purchase elsewhere for up to 80% less from a completely independent seller.

* You were not told of exclusions (including medical conditions, employment status, etc).

* Were sold the ppi without knowledge (added to your monthly repayments.)

Payment protection insurance if sold correctly towards the eligible borrowers could easily be a valuable cover; however, using the unethical practices of lenders looking to create a quick pound it surely has lost its credibility.

If you want to find more information on claiming ppi back please visit experts in ppi claims – ukppiclaims.org.

Payment Protection Insurance is one of the most profitable products offered by lenders. Most people think the banks make the majority of their money from the interest charged on credit cards and loans but it may come as a surprise that these are not among the top earners. When it comes to insurance, for every 100 charged by a lender there is only a 15% chance a customer will ever make a claim against them, and even if they do most lenders wriggle out of ever paying up due to exclusions in the small print which prevent consumers from qualifying to reclaim their PPI.

Every industry has its favourite methods of making extra profits with the least amount of effort, and the financial industry is no different. However, if you had to guess what the industry’s favourite method was, chances are you wouldn’t pick PPI as a money-spinner or pet profit-maker. But this particular product has reaped massive profits for lenders – and is now dispensing a sting in the tail that has caused the industry its biggest headache and a potential 2.7bn bill to be paid on PPI claims over the next five years.

The lengths lenders have gone to, to sell PPI are extraordinary and in some respects, unbelievable, simply due to the massive profits that could be made on each policy, far more than what could be made on the interest from loans and credit cards. If you are reading this and wondering if you may be one of those people who has suffered at the hands of the lenders then reclaiming your PPI could be the answer to your debt problems.

Below is a list of tactics lenders use to sell you PPI and any one of them could make the claims valid. Shockingly this is pretty basic stuff for a lender and you’d be surprised at the full extent of the unscrupulous and unethical tactics lenders use to get you to have PPI. Such as; 1) Not knowing you had it in the first place! 2) Not hearing PPI mentioned clearly because it was slipped quickly into the conversation 3) Referring to PPI in the context of you being ‘fully protected’ 4) Being told it is compulsory to have the lender’s PPI if you wanted to obtain credit from them 5) Pre-filled application with boxes ‘helpfully’ ticked – those boxes that make the lender the most amount of money that is 6) The policy is not what you asked for or agreed to 7) You didn’t know your loan was longer than the PPI policy The PPI is a joint policy held in one person’s name 9) You were a student, unemployed or retired when you were sold the policy yet it doesn’t cover you under these circumstances 10) Doesn’t cover you if you are a sole trader, but you were told it did 11) Never asked about pre-existing medical conditions, which of course the policy will not pay out on 12) Never asked about any alternative cover you may already have with an employer or other lender

Any of the above are grounds for a PPI claim, but reclaiming is not an easy process. Recently the Financial Ombudsman discovered that lenders were being deliberately obstructive and routinely rejecting claims as soon as they arrived. It was such a serious accusation that the Financial Ombudsman made an official complaint to the Financial Regulators, demonstrating that 89% of all PPI claim complaints it dealt with were proved to have merit and subsequently upheld. Some customers have even had to go to the lengths of taking the lender to court and sending in bailiffs to get their money back.

So why do lenders do it? Very simple They do not want to give you your money back! They make far too much money from this enterprise so they want to make it as difficult as possible for you to reclaim so they can keep your money. After all, if you PPI claim was rejected the third, fourth and even fifth time the likelihood is you would give up trying, and this is what they want you to do!

Sometimes you can speed up the process considerably by using an experienced claims company to help you with prepare, submit and manage your PPI claim. Most lenders don’t bother to try delaying tactics with these companies because they know they have a great deal of legal knowledge behind them, not to mention won’t tolerate any silliness or obstruction from the lender.

Whichever way you choose to get your money back – the DIY route or using an experienced claims company – there’s nothing quite as satisfying as paying off as much of your debt off as possible with that lender. Even better, if you can pay it all off using your PPI claims refund, you’ll have the pleasure of knowing you stood up for yourself and got rid of an unethical lender who tried to cream off a bit more profit by pushing you further into debt.

Remember banks don’t want you to submit ppi claims, after all they don’t want to give you your money back! Make sure to use the right PPI Claims Company to ensure you get the compensation you deserve.

What do you think the banks make the most money out of? Loans? Credit cards or maybe even mortgages? Well you maybe surprised to know that selling PPI insurance is one of their top earning products. Many years ago banks and lenders realised that selling insurance is where the big money is made, not from the credit cards and loans alone as a single entity. If they could sell insurance alongside these products they would make a packet and their profits would go through the roof!

How is the money made by lenders on PPI Insurance – The idea behind insurance is to protect us in time of need, but if truth be told most of us would never need to claim for it and the lenders know this. Its all about averages and clever calculations. There is a vast amount of statistics and data available to lenders which allows them to calculate how likely you are to make a claim on your policy. For example, if a 20 year old decided to take out a health insurance policy, the insurers would know it is very unlikely that they will ever make a claim as most people at this age do not have any health problems. It is the perfect customer to them, they line the insurance companies pockets with cash and very rarely clam it back. This sort of product is very attractive to lenders as they make huge sums of money from it.

And boy do they profit! In June 2008, The Competition Commission published the results of a 15 month investigation into insurance and found the following average payout ratios:

* Car Insurance – 78% * Home insurance – 54% * Mortgage PPI insurance – 28% * Personal Loan PPI insurance – 15% * Credit Card PPI insurance – 11%

So from these figures we can see that for every 100 an insurer takes from a customer in PPI insurance, there is only a 15% they will have to pay out on it. That’s an 85% chance they will never have to pay out to you. So 85 out of every 100 is pure profit for them. It’s even lower with credit cards at 11% (89 out of 100 profit).

PPI insurance favours the broker – Contrary to popular belief, insurance isn’t sold directly to consumers, it’s mainly sold through high street lenders like banks and building societies. Yet it is not the insurers that make the most profit, it is the lenders. When a lender sells you a insurance policy they add a ‘mark up’ to it. The amount of this ‘mark up’ varies between lenders but it has been know for it to be as high a 9 times more than what the insurers charge if you were to go direct to them. Compare the monthly interest on a loan with and without PPI and you will see how much is actually being made by the banks. Usually the PPI costs the same if not more!

Mis selling PPI insurance – When did it become so common? When lenders realised what a money spinner PPI insurance was back in the late 1990s, they started pressuring their staff to sell as many policies as possible. They were given targets to hit and their pay was linked so if they didn’t sell their wages decreased. Some lenders even sacked their staff if targets were not met, whilst other lenders offered huge benefits and incentives to those who could sell the most in a day, week or month.

Customer service staff with no sales experience was forced to sell PPI insurance any way they could to keep their jobs. Bear in mind, until this point the in-depth knowledge needed to ensure a financial product was right for someone and that they understood what was involved lay in the domain of trained and experienced financial advisors. Lenders were muscling in, sending out staff with the most minimal of financial training to sell financial products.

Serious mistakes began to arise and peoples ethics went out of the window in the race for sales and profits. Consumers were being persuaded to take out policies even though they were not suitable for them, and when they came around to reclaim on their policy they found themselves being told, ‘sorry, computer says NO!’. This is one of the main factors why PPI has such a low pay out ratio and has led to a wave of PPI mis selling claims being made.

There’s no doubt PPI insurance is a useful thing to have if your income ever drops because of illness or redundancy, but unfortunately thanks to behaviour of lenders it is doubtful the reputation of PPI insurance will ever recover. It will forever be linked in the minds of us all with the words ‘PPI mis selling’.

If you have PPI there is a good chance it was mis sold to you. Use our PPI calculator to see how much you could reclaim.

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Millions of UK consumers have purchased financial products in the last ten years and almost of them will have been sold Payment Protection Insurance as an add-on. PPI is designed to cover your ability to repay your debt should you find yourself in unfortunate circumstances such as injured or unemployed, however, the lenders have been using a loophole to sell PPI to customers who were not qualified for the cover or who did not fit the requirements of the PPI they were sold.

Over the last decade, lenders have generated estimated revenues of 3bn by being able to avoid making payouts when necessary. Despite acting on a vague technicality they have been deemed to be in breach of financial practice and have faced investigation from the authorities. Many high street lenders have been slapped with fines of up to 7m and stand to lose much more from refunds.

The scale of this fiasco ballooned with the help of bank salesmen who would often demand you take out the PPI if you wanted the loan, an obvious lie, in order to boost their commission. In some instances the small print was the only mention of the compulsory PPI that would be added on to your product but not mentioned in your quote, by signing the contract you implicitly agree to pay for it.

Many consumers where ineligible for PPI from the start but have still been paying for it, for example those above the age of 65 you will not be able to make use of PPI as they are above the age of retirement. Anyone who has paid for PPI over this age is legally entitled to a full refund.

If you are self employed then you are considered to be in a less stable financial position than someone in full time employment and you will not be qualified for payment protection insurance, however, banks will be happy to sell it to you with no intention of paying out if you need it.

Most lenders will require a copy of your medical records as insurance is usually based on the likely hood of you falling ill or getting injured, if you have a history of illness or any other medical ailments you will not qualify for PPI. As you can imagine, the lender will be very keen on ensuring you take out PPI even with your medical record in their hand and you will have no chance of being covered.

If you have been mis-sold PPI like this or in any other fashion you are probably entitled to a refund, although you will have to chase the banks for this and it is often easier to het the help of a legal professional.

If you are looking for good PPI claim then talk to Donns LLP who can guarantee to help you PPI claims