Payment protection insurance (PPI) is an insurance product mostly sold as a package with other loans or overdraft products. It insures the repayment of the loan in situations where the client is unable to service the loan due to situations such as disease, accidents or death, all which result in loss of income and hence the inability to pay back what is owed.
Given the definition of PPI, a business can indeed claim PPI compensation. In such cases PPI is usually sold to the business by the financial institution as a standard addition to loans granted to the business. The benefit paid by the insurance company in the event of the business claiming PPI compensation goes to the financial institution that provided the credit facilities.
Under what circumstances then, would a business claim compensation? As in an individual’s PPI compensation claim which would revolve around situations that incapacitate the individual’s income generating ability, a business need to claim would be due to their financial incapacitation. The categories of risk that would lead to this include bankruptcy, unexpected loss of assets or difficult financial patches such as the recession.
Considering these categories of risk, it is considered quite difficult to determine how suitable the PPI is either for a business or an individual. It can also be argued that a business claim for PPI compensation can be close to meaningless. This is when the amount of credit borrowed against the repayments made in the event of a claim is put into consideration. This is because PPI typically only covers minimum credit payments for a period usually not longer than 12 months. When we consider the amounts credited to businesses by financial institutions, the claims amount to a drop in the ocean of what is owed, before the company has to come in and resume responsibility for the debt. Twelve months is surely not enough for a company to come back to its feet after a major fall that would render it unable to fulfil its financial obligations!
In conclusion, in my opinion, yes, a business can claim PPI compensation, but is it worth it?
Find out whether you were Mis-Sold PPI at ppimissold.org.uk
You can receive many benefits when making PPI claims. Payment protection insurance policy (PPI) is important since it helps manage obligatory payments when faced with a financial crisis that renders you unable to meet certain obligatory payments like mortgage, credit, hospital bills and many more. Most people do not know the full benefits of having PPI and above all, how to use it to their advantage. PPI claims help people in exercising their right especially when they do not need the policy any more or when there is sufficient proof of miss sold PPI.
PPI claims offer a soft landing spot for you when you have to pay debts with no stable source of income. PPI gives you peace of mind since bankruptcy is a common occurrence in many people’s lives. There is nothing as good as having some where to turn to when faced with such a scenario.
Certain unavoidable circumstances like sickness, accidents, terminal ailments etc covered under PPI can prevent you from going to work. When this happens you need all the financial support you can get to pay hospital bills, mortgage, credit card and other monthly obligations. Making PPI claims under such circumstances helps in meeting these expenses until you are able to meet these obligatory payments independently. Also in case of death all remaining payments will be paid, thus, extending relief to those you leave behind.
You can also recover policy payments paid in excess as a result of miss sold PPI. Most people faced with overcharged policy payments have had to dig deeper into their pockets to make these payments. Recovering this extra amount paid can lower your total insurance payment expenditure, thus, giving another avenue for making savings.
Claiming PPI is free, and this can be considered as an added benefit. However, you can use PPI claims agent when there need arises for professional assistance. Some agents charge a fee for this service, while others ask for a small percentage after pushing the claim through for a ppi missold refund start your claim at www.compensationppi.net
Commonly added to loans, credit cards, and mortgages among other purchase agreements, PPI or Payment Protection Insurance is designed to help people continue their payments should they ever fall ill or if they lose their jobs. However, PPI has been controversial because a great number of policy holders found this insurance useless due the fact that they would be unable to claim PPI if they were retired or self-employed. This is why a huge number of policies were considered to be mis-sold.
Banks have been identifying customers who have mis-sold PPI. This way, they can reclaim their premiums. Although more common to individuals who have PPI, businesses can claim PPI if they received a letter from a bank. This letter will tell the individual or business that there is a problem in the policy and there are instructions to follow so they can pursue a specific claim.
Some individuals and businesses do not get a letter informing them to claim PPI. This does not, however, mean that they cannot claim it at all because some are over-looked or have minor qualifications and more prominent cases are the ones which are easily seen by the banks. It is important to check the PPI claim guidelines to make sure that a business or individual has mis-sold PPI and is eligible for a claim.
Once a claim has been filed, give it some time for the responsible people to contact back. If a claim is initially rejected but one is certain that he has the right to it, claim PPI with the help of the Financial Ombudsman Service (FOS). Follow their PPI claim outline and finish the procedures they have laid out.
When worse comes to worst, both the company and FOS can reject a PPI claim. In this case, no compensation will be received. This is why it is important to research whether a business has indeed been mis-sold PPI to avoid the hassles of filing claims which in the end will be ultimately useless.
Does it seem you’ve been paying an unusually hefty amount on your car loan or home mortgage? If you are, perhaps there is an explanation for this – PPI. Banks and other financial institutions that lend money sometimes “forget” to mention that they stringed a PPI or payment protection insurance on your original loan. This so-called PPI is designed to protect the interests of both parties involved in the transaction. In the event that the debtor fails to catch up on his/her loan repayments, PPI will be used to cover the overdue unpaid credit. Yet the main issue is, what if the borrower is able to make repayments?
Claiming mis sold PPI should be seriously considered, especially for average income earners and budget-limited individuals. The process enables you to recoup the monthly premiums you paid either knowingly or unknowingly to the lender. But how does one know if he/she has fallen victim to a mis-sold PPI? Are there any indicators or signs they can use to identify which side of the fence they stand on? Here is a guide to help you determine if you are really eligible to claim for mis-sold PPI.
For starters, you should remember that PPI is an optional product. You don’t have to purchase it if you are confident that you will be able to pay the outstanding debt within the agreed time frame. If this fact was not made clear to you by your lender, there is sufficient evidence to show that you were mis-sold PPI.
Was the lender clear about substantial exclusions under PPI coverage? For instance, are you aware that there are exclusions inhibiting coverage on any preexisting medical diseases? If not, then you have a mis-sold PPI.
Lastly, check your mis-sold PPI. Assess the credit negotiations related to your loan contract. These data should list the approximate conditions of your policy that delineate whether or not your PPI was mis-sold or not. Identifying if your PPI policy was mis-sold or not will enable you to recover any amount of cash that could be used towards other more important expenditures.