Do PPI Claims affect my credit score?

PPI, the short form for Payment Protection Insurance, was designed to cover credit card users in the event of sickness, unemployment or an accident. Banks and other financial institutions were renowned for offering the PPI plans until a recent ruling that required the institutions to probe their records for mis-sold policies. It was after the FSA (Financial Services Authority) revealed that numerous clients were wrongly charged for the PPI policy plans. In fact, most individuals confessed that they were misled over what the policy covered and what they were entitled to while others had the plan added without their knowledge. Some financial institutions made it mandatory for borrowers to take PPI policies. Here's how to determine if you have a mis-sold PPI claim: • If you were not employed when you took the insurance • If you had a medical problem when you took the policy • If the refund amounts to a fraction of the cost paid • If bank or sales agents convinced you that the insurance was mandatory to qualifying for a loan • If you are paying for PPI claims that were added without your knowledge • Where the bank or insurance agents did not explain the entire cost of the PPI Claiming PPI policies In the wake of FSA's revelation of mispriced PPI policies, numerous borrowers are now reclaiming the PPI claims. Major institutions like banks are now repaying customers mispriced PPI claims after confirmations of their existence. However, the practice leaves clients in fear of bad credit ratings, which begs the question; does reclaiming a mis-sold PPI Claim affect my credit report/rating? How PPI Claims affect clients’ credit rating Claiming PPI means withdrawing from an insurance agreement and does not affect one's credit score. On the contrary, the firms conduct the PPI claim procedure without bias, and it does not affect your credit rating. In fact, borrowers who are deterred from making PPI claims should investigate their right to make a complaint against mis-sold PPIs. After FSA launched the Banking Conduct Regime, which created a system of "treating clients fairly," banks are obliged to treat all customers equally. The regime covered both the non-lending operations of a bank and the regulatory activities involved in accepting deposits and other banking services. As such, the initiative prevented adverse effects of making PPI claims like bad credit rating or other future dealings. Jump to top

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