How PPI Has Been Mis-Sold?

In the high-risk world of today, people try to make all possible arrangements to ensure repayment of loans in order to prevent their property from being repossessed or to prevent themselves from suffering from other such consequences. Payment Protection Insurance (PPI) is one such arrangement, which can be a great solution to repay loans in case of any unforeseen circumstances. It might prove to be a problem in repayment of a debt such as unemployment, accidents, sickness or any other such circumstances.
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However, lenders misuse this so-called, borrower beneficial, facility for their own gains. According to popular estimates, approximately 85% of the borrowers who file applications for claiming their PPI payments are refused straight away. Generally, there aren't many options available when choosing a PPI and thus many people would not prefer to have one.
There are a few limited options and many lenders force borrowers to take these policies for their own benefits because they themselves know that the profit from the PPI would be an addition to the profit earned from the interest on the loan itself.

Many people don't really know that they are being charged for PPI programs because of common negligence. Many people ignore the details on their credit card bills and other loan repayment bills and are completely ignorant of the extra amount of money they are being charged for the PPI policy.

Mis-selling of PPI refers to the swindles that many lending companies and individual lenders pull on ignorant borrowers. There are different indicators, which might suggest that the Payment Protection Insurance policy has been missold. First, if the policy has been sold without the knowledge of the borrower, then this is a clear-cut sign of mis-selling of PPI.]

Secondly, if it has not been made clear at the time of lending of loan that the policy is optional and the borrower can refuse to take up the policy, then this is again a clear indication of mis-selling of PPI and the borrower has a winnable claim in most cases. One should always check the break-up plan of their payments to the lending company to make sure that they are not being charged any un-necessary amount, which was not agreed upon at the time of agreement.
Some lenders pressurise the borrowers to take payment protection insurance policies, which is again an indication of mis-selling of PPI policy. In such cases, the borrower has the right to claim repayment of the amount charged under PPI polity. The law deemed the practice of compulsory PPI policies being offered by many banking institutions to be against the rights of the public. Therefore, since May 2009, the government in the United Kingdom has prohibited such practices.

However, many people still have pending claims and thus if there are clear indications of PPI policy being missold then the borrower should make claim for repayment of the extra amount charged by the lending institution or individual without the knowledge of the borrower.