Have You Been Overcharged Interest on Your PPI
Claim Back up to 30 Years of mis-sold PPI
No Original Paperwork Required
Payment Protection Insurance (PPI) has been used for mortgages, loans and credit cards to protect borrowers if they are forced to miss a payment. However, news of how certain bank and lending institutions over the years have misused the PPI system to their own benefit has allowed borrowers to reclaim much of their PPI payments.
There have been a number of abuses in the PPI system over the past decade. However, one of the most prominent has been interest overcharging. Essentially, this means that lending institutions have overcharged on the interest rate that is allowed by law. In some cases, the overcharging was up to four times or more of what was allowed by law.
The standard interest rate for PP insurance is 8%, which means that banks and lending institutions could charge 8% of the total amount of money allocated for PPI coverage. This was a way for lenders to help cover the cost of PPI insurance. However, there were many abuses to the system which allowed some lenders to overcharge. Here are a few examples of how these lending institutions abused the system so they could overcharge.
Telling Customers that PPI coverage for their loan was only available at their institution.
As a borrower, you can obtain PPI insurance for your loan from any qualified institution no matter where you got your loan. By the lender telling you that PPI for your loan was only available at their institution, they might have charged you rates that were over and above the 8% as required by law.
Informing their Customers that PPI was mandatory.
This was another common tactic that was used by lenders abusing the system. While PPI is mandatory for certain types of loans, it does depend on the financial situation of the borrower. The law explicitly outlines what types of situations require PPI. In many cases, people who were told that PPI was mandatory were simply not true. In turn
How to discover if You were Overcharged
If you feel that you might have paid too much for PPI coverage, then there is a simple method to find out if you were overcharged. Take your last monthly loan payment statement and see the breakdown of what was being charged. Your PPI interest should be separate from your loan and other charges.
If you do the math, the total percentage should be around 8%. If it is much higher, you should have another person double check your figures. You can at this point start seeking professional help if you feel that you were overcharged.
What to do if you believe You were Overcharged
There are professional institutions that are specifically geared towards getting your money back if you were subject to interest overcharging. The reputable firms that handle PPI reclaims will not charge you upfront for their service. In fact, if they find that everything is in order, you were charged the proper amount and the PPI was legitimate, you do not have to pay any money for their services.
However, if you find that you were the subject of interest overcharging, and then you can have the professionals file reclaim PPI proceedings for you or you can do it yourself.