Payment Protection Insurance: Controversial Trauma

July 7, 2012 - PRLog -- Some insurance claims get accepted whereas some of them get rejection. In case of PPI or payment protection insurance there is completely difference situation. Most of PPI claims get rejected by the insurance providers and very few of them get accepted. It happens because it was sold with misconception by sellers and brokers. Policy holders who bought it did not consider whether it is right for them or not. In most cases, policy holder were unaware of the plan and they didn’t know even they are paying for PPI premiums.

This issue comes to financial authority and after a deep investigation; authority has found that PPI plans were wrongly sold to the individuals. Banks also handle PPI claims(http://www.ppiclaims.uk.com/) unusual. According to FOS over 2, 64,000 PPI complaints were made in last 12 months related to PPI disputes. These complaints were about the payment protection insurance plans sold in last 10 years. Many high profile banks of UK are fined for mis selling of payment protection insurance plan. Leicester and Alliance were fined with £7 million whereas other PPI selling companies have fined with somewhat less charges. HFC, Egg, Capital one etc. have charged with £1.1 million.

During period of 200-07, thousands of PPI victims have complained about this unfair trading practice of banks. Finally, in 2011 court has announced its decision in favor of consumers.

There is provision for banks to return consumer’s amount along with the interest rate for that period. Banks have set aside millions of pounds just for PPI refunds. But still banks are rejecting PPI claim applications unfairly. So, it is important to write banks for PPI claim with proper documents and evidences. These things will help to improve the chances of mis sold PPI claim(http://www.ppiclaims.uk.com/mis-sold-ppi/) approval. You may take help of third party PPI claim Management Company to complete the process without any hassle or trouble.