31 August 2015
Payment protection insurance (PPI) has hit the headlines over and over again in recent years.
First came the announcement that it had been mis-sold to customers across the country, and that claiming compensation would now start. After this, there were all kinds of headlines of people receiving massive pay outs but also banks being fined for delaying payments and so on.
Just when we think the whole process is settling down, it re-emerges again with another story.
In amongst all this, we must remember, are people with real-life stories. Some people have claimed their money back, but there are a group of people worried that this will not be possible for them. And this is because they are in debt or arrears to their bank or lender.
Not necessarily, but as a customer we advise that you take your time and check over all the details, as well as any offers of payments.
Some people assume that because they are in arrears they are not entitled to make a claim but this is not the case.
The cost of PPI in some cases was added in one lump sum on top of the amount you borrowed. Every month, on this combined total of loan and PPI, you would have paid interest.
A £5,000 may have been affordable but with a chunk of PPI added on top, and the monthly interest the monthly payments you would make would significantly increase.
Effectively, the monthly amount was outside of your budget and you may have struggled to make these repayments.
Hence you missed some, or fell behind. Costs and late payment charges were added, making the situation worse.
Now, you are in debt and arrears.
PPI claims can see a large proportion of this loan, if not all of it, written off, especially when you also factor in the costs and fees that are also claimed back as part of your PPI compensation claim.
This is YOUR money and the bank unfairly took it from you, for a policy that probably did not cover you in the first place. Not only this, it was expensive as well as offering poor value for money.