The best and easiest way to acquire most of the things people need is by paying cash for them. However, since most people hardly have such large amounts of money to buy things such as homes and cars, they will usually resort to loans and other lines of credit. Most credit is advanced by banks and other financial institutions to willing borrowers. The loans are taken out in order to finance the projects of the borrower. This includes purchasing of homes or cars and other things. Many also choose to protect the loans they take out from these banks. This will ensure they do not default and that the loans are always repaid in a timely fashion.
One of the most popular products is PPI insurance. This is an insurance product that covers loans and all other forms of credit. It means that any consumer who has a credit facility and takes out this insurance cover will have the insurance company meet their repayments should they for one reason or another, be unable to meet the credit repayment schedule. If a person loses their job or falls sick then the PPI cover will make the prepayments for at least one year. This is the reason why many borrowers take out the PPI insurance cover.
There were complaints received from customers regarding the illegal sale of the PPI insurance by the banks. Apparently the insurance cover was selling to customers who did not apply for it, were not sure they needed it and many others who were unaware they bought and paid for the insurance. This case was taken to the courts and the courts ruled that indeed the banks were in breach of the law. They were ordered to meet the claims customers had regarding the PPI reclaims. The banks basically ordered compensation to be paid to all verified victims.
Customers of banks who believe they wrongly purchased the PPI insurance cover can now file for a PPI reclaims. The process is very easy and straight forward. Basically, an aggrieved borrower will submit an application for PPI reclaims with the office of the UK financial services ombudsman. Once this application is received, it will be processed and then forwarded to the banks for payments. Banks are obliged to make all payments for PPI reclaims approved by the financial services ombudsman. This makes it possible for all victims of the PPI mis-selling by the UK banks.