There are two types of PPI policy offered.
Monthly premiums. These policies are separate from the loan, paid on a monthly basis and paid by a separate direct debit. These policies can be cancelled, increased or decreased at any time to reflect the personal circumstances of the borrower and there is no interest added to the monthly payment. Although slightly overpriced when offered by the lender, these policies are not worth challenging as the refunds will be minimal.
Single premiums. This is where the PPI premiums for 36 or 60 months are calculated and added to the main loan. The payment is also incorporated in the payment of the main loan. The policy cannot be altered or cancelled as it now forms part of the loan. Clients also pay interest on the PPI at the same rate as the main loan form the outset.
This is the injustice we can challenge and recover money for the client. Because the premiums are so overpriced the return to the client runs into many thousands of pounds.
Call us today on 0845 867 65 44 to speak to one of our representatives about reclaiming PPI go to our PPI page for more information.