Introduction: Payment Protection Insurance (PPI) can be really useful unless someone has mis-sold you the policy alongside loans, credit cards and mortgages.
PPI claim Scandal in the UK: According to data, in the UK, banks have sold around 45 millions of PPI policies with premiums worth around 44 billion Euros to the bank. This amount is beyond the thinking of a common man and quite difficult to grasp.
Financial Conduct Authority (FCA) in the UK has proposed a deadline for people to make their PPI claim before June 2019. But what count as PPI mis-selling? There are some examples of what went wrong when by the sellers:
- PPI policy was added without the permission.
- Unemployment cover was unnecessarily sold to the self-employed, unemployed or retired people.
- Sellers failed to give information on the omission of pre-existing medical conditions.
PPI Scams and their solution: Other than poor communication and lack of information there are some goons in the society that use PPI claim. Basic idea is ‘to get your PPI compensation’. Here are some examples of PPI scams:
- The phone call and email scam: Targeting unsuspecting consumers, these people claim to get your PPI compensation but in with an advance money payment.
To stay safe from such scams people should not give any detail regarding the bank or any card number. Only go for reputed companies in case of your PPI claims as they will provide you an invoice after the payment.
- Pay and get ‘refund’ scams: There are such companies that claim to provide a complete refund but in case they will not be able to re-claim any of your PPI money. But unfortunately, they are some goons after your money.
Never go for a company that is asking for money in advance. There are many reputed companies in the market who will work for your claims without any fees or refund policy.
- Door step PPI scam: Scammers go from door to door and claim to investigate about people’s PPI claims. Theses scammers ask for payment either now or after the PPI compensations.
Never give any detail to the person standing on your door and claiming to get you compensation because there is no such policy by any reputed company.
Conclusion: PPI claim is one of the biggest scandals in the history of UK. Many small scams have also happened but if people be polite and only choose a reputed company to get their PPI claim, they can be safe such goons. Your money is precious to you so spend it wisely and stay safe.
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