FinanceDogma – Finance, loans, creditcard and mortgages

July 25, 2013

Save money by reclaiming mis-sold PPI

Filed under: insurance — Tags: — admin @ 11:55 am

Payment Protection Insurance was introduced to the financial services industry more than a decade ago as an aide for credit consumers. It was created to protect their debts from getting in arrears by covering a part of their repayment obligations in the event that they got sick for a long time, had an accident, or were made redundant at work, making them unable to earn and pay their dues. Unfortunately, the horrors of having signed up to PPI appeared when the mis-selling scandal was discovered. Millions of consumers were shocked to have realised they were deceived only to buy a policy that was useless and only put their financial status in a risky situation.

If you were one of these people who have been subjected to the PPI mis-selling scam, you most likely have the chance to save money by reclaiming your Payment Protection Insurance payments. PPI claims can be made by people on their own or through the assistance of experts and advisers.

To get things started you may need to find out first if you have PPI alongside any of your credit agreements with the bank. To do this, check your statements and your account documents for PPI indicators. The paperwork would specify charges for such and the policy certificate would state how long since you’ve had it. It is important that you have kept these documents safe as they could serve as strong evidence to your claim.

Once you have the paperwork ready, write to your bank about the mis-selling for them review. Normally, a legitimate sale of Payment Protection Insurance would have to have you informed of the following:

PPI is optional. It doesn’t come as a compulsory insurance with any finance agreement.

The insurance costs should have been clearly explained.

The full cover should have been itemised for you.

Pre-existing medical conditions are not covered.

Individuals below 18 and over 65 are not eligible for insurance cover.

Self-employed, employed in a family business, retired, and nearly-retired individuals are not covered by the policy.

Students are not covered by the insurance.

If these were not discussed thoroughly with you, then there was something wrong in the way you were made to buy PPI.

When the bank receives your reclaim letter, they will investigate the case in a matter of 6 to 8 weeks. It may take longer of you have not attached a sufficient amount of evidence or there were not enough available information for them to refer to. Remember that banks can only store account details in their database for as long as six years following the activation of your account or the date of the last payment made to the debt. This is why paperwork is very necessary to weigh how valid your PPI claim is.

The bank will let you know of their decision after such time and if valid, they’ll arrange for compensation immediately. However, if they decided otherwise, or you have not heard from them at all, you can take the matter up to the Financial Ombudsman Service who will take over the review to find out what went on at the bank. The Ombudsman will contact your lender and make further enquiries. You may also be asked to send in additional documents and information about your claim.

As soon as they have decided to uphold your claim, the bank will be required to give you a full refund of the PPI payments you made, plus the interest it has gathered from the start.

So, if you have every reason to believe that you were a victim of the PPI mis-selling scandal, do not hesitate to make an action to clarify and resolve it for your (financial situation’s) sake. A lot of consumers have been successful at making PPI claims and you should not be letting this chance pass up just like that.


January 27, 2013

Should I take out PPI?

Filed under: insurance — Tags: — admin @ 12:12 am

Whether you should take out payment protection insurance can be a more difficult solution than it may seem. You may think that all PPI is bad and it should never be considered. It is not surprising that people do have this attitude in light of all the PPI scandal and PPI claims that are being made at the moment. However, they are not happening because there is something wrong with PPI but only the way that it was sold.

So if you have any sort of a loan, then you should consider whether you want to take out payment protection insurance. You should consider whether you would like to cover the risk of not being able to make your repayments. The policies do vary so you need to think if you want help if you are unwell, can’t work or whatever and make sure that the policy covers you for this.

It is worth considering how much the policy will cost you for the duration of the loan. Think about how much money you will spend in total and decide whether you think that this will be worth it. It is worth considering what else you could spend that money on as well as the likelihood that you would need to make a claim. Some people like the peace of mind that it gives them and would rather pay the money for that. Others are happy to take the risk, perhaps because they have savings they could use to cover the repayments or another income coming in to the household which would help.

Each person is different in how secure they feel and how much risk they want to take. It will also depend on the loan. If it is a mortgage and your house will be repossessed if you cannot keep up repayments due to losing a job, then you could be left with nowhere to live. However, you may feel you have enough money to cover a few months, you feel the bank would be happy to negotiate a few payment holidays and you have another income to help out with the household bills. However, if you are solely responsible, have family living in the house and no savings, then the idea of having the house taken away could be a lot more scary.

So it is worth thinking about your own personal circumstances when considering PPI rather than worrying about things that have happened to other people in the past.

November 2, 2009

How to get lower insurance costs

Filed under: insurance — Tags: , , , , — admin @ 1:27 pm

Have you ever noticed that, as time goes by, your insurance seems to get more and more expensive? Now, granted, if you are older than your coverage probably has gotten less expensive, but if you are about 21 or 22 years old, you have probably seen increases. Is it the economy? Well, maybe not exactly. See, I had an issue this past year where my insurance company would raise my premiums about every six months or so. It was only like $10 per month, but over the span of two years this got a little ridiculous. Not to mention that fact that in that span of time I had gotten married, had a child, moved away from home, started my own business… etc. etc. I should have been getting better rates, when I was actually getting hammered by higher ones.

So, I decided that enough was enough. I started getting bids from other companies, and believe it or not, I found some other insurance providers that could give me the same level of coverage for JUST ABOUT HALF of what I was paying now! That sure isn’t saying much for my current company, huh? Well, I called my company up to tell them I was canceling my coverage (boy, you should have heard how fast I got to talk to my agent THIS TIME… she is usually so busy…). She asked what the problem was, and I told her simply that I was paying way too much, and that I had gotten better deals down the road. So, she asked me if I would give them a chance to re-figure my coverage, so that maybe I could get lower costs and stay with them. I told her to give me her best price, and then we would see. (more…)

June 5, 2009

Home and Contents Insurance – How to Find the Best Deal

Filed under: insurance — Tags: — admin @ 2:02 pm

Each year building insurance increases and the average increase last year was about 1%; seeing the price now sitting at around £205 per year.  Likewise, the cost of contents insurance increased by around 2%, now costing the ordinary homeowner about £151 per year. That is the average, but there are some companies that have pumped up the prices considerably more – last year Norwich Union for example, increased rates by a massive 6%.

So you might be wondering – why this is the case when competition is on the rise?  The answer is fairly simple – external forces that contribute to price increases are on the rise as well – and that’s what we’ll discuss now. (more…)

May 16, 2009

Insurance: Do I Really Need It?

Filed under: insurance — Tags: , , , , , , , , , , , , — admin @ 7:42 pm

There are many different types of insurance, with the underlying purpose being to protect individuals from a host of unseen situations. In most situations this protection will cover individuals by providing money when required, as well as protection from liability, damage and financial loss. Insurance can protect individual’s homes, vehicles and life, among other things. Depending on the needs of the customer, insurance packages can even be tailored to fit their needs.

In certain situations there are some insurance policies that are compulsory. Automobile insurance against personal injury in a number of states is one such example. Insurance coverage can be quite broad and vehicle insurance is not different. As a consumer, you can select between a simple liability policy that pays the other party should you be involved in an accident, but provides no coverage if your own property is damaged.

If you require higher coverage, you might opt to take out a comprehensive policy that will cover damages to the other party’s property and also to your own property, as well as medical expenses. With such a range of coverage and many points of coverage in between, it is generally considered that automobile policies can be varied in nature. (more…)

May 4, 2009

What is Insurance?

Filed under: insurance — Tags: , — admin @ 10:36 pm

Insurance is a way of hedging our bets against an uncertain future. Since we can’t predict what’s going to happen to us or to our property, we buy insurance so we can be compensated for the results of a major or minor life event. Money comes from a pool of money contributed by everyone who holds individual policies. In other words, risks are pooled, and each policyholder’s contribution to the pool of money depends on whether that person is a bigger risk for that particular event (in which case he would pay more) or whether he is a lesser risk (in which case he would pay less).

There are dozens of types of insurance a person can buy, and in the United States, the policies and rules for insurance change from state to state. In other words, Pennsylvania health insurance might be very different from Georgia health insurance in terms of costs and coverage. But health insurance isn’t the only type of insurance. Here are some others: life insurance, accident insurance, homeowner’s insurance, renter’s insurance, car insurance, and travel insurance.

In much the same way that Pennsylvania health insurance is different from Georgia health insurance, so are the different types of insurance different. For example, if you buy travel insurance for a vacation you have planned, that insurance has a short time frame, and costs little in terms of dollar amount. But homeowner’s insurance is necessary for as long as you own the home, and is fairly major budget item for most.
People who determine how much people in different risk categories pay for insurance are called actuaries. They are experts in financial risk probability, and insurance companies employ them to help them best manage risk and charge enough in premiums to cover losses and still profit.

January 18, 2009

Why to Insure?

Insurance plays a vital role in mitigating our financial losses that may arise due to unforeseen events. Any finance-minded person would buy an Insurance policy to secure himself or his dependants at the time of need. There are different types of Insurance policies right from Life Insurance to Home Insurance. One has to resort to the policy that covers his possible risks.

Health Insurance

As a human being we are prone to sickness at some or other point of our life. To recover from sickness, we need to undergo medical treatment. When it comes to medical treatment, we need to pay the medical expenses. When the treatment cost is high, it impacts our savings. This is where a Health Insurance policy comes handy. It covers the risk of medical expenses. (more…)

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