PPI, or Payment Protection Insurance, is meant as a means to protect borrowers against illness and the loss of their job by providing a monthly sum of cash that is used to repay loans and other credit agreements. Payment protection has come under the close scrutiny of the Financial Services Authority or FSA in recent years because of the apparent number of policies that have been mis sold, and many borrowers have been able to reclaim their premiums with interest. As well as loans, credit cards, and store cards, many home buyers also took out this insurance when they applied for and received their mortgage.
MPPI
Mortgage PPI, otherwise known as MPPI, can prove an invaluable asset and help homeowners protect their homes but a lot of these policies have also been found to have been mis sold by lenders and policy holders are left with inadequate or inappropriate coverage for their needs. In the same way that borrowers are able to reclaim PPI on their loans and credit cards, it is also possible to file MPPI claims in a bid to have erroneous payments refunded.
Claims
The greatest difference between standard PPI and MPPI claims is the amount of money involved. A mortgage is the most important and largest debt that most of us will ever take on in our lifetimes. As such, the payment protection policies that are associated with them are also considerably higher. A successful PPI claim may amount to £2,000 to £3,000 but successful MPPI claims can rise to £10,000 or even higher and some borrowers have been awarded claims of £25,000 or more.
MPPI Claims
Homeowners could be owed thousands of pounds and it isn’t just MPPI claims that they can benefit from. Some lenders have been found guilty of mis selling mortgages and it is possible to reclaim some of the payments associated with these cases too. If you have paid money to a bank or other lender and they have profited by providing false or inaccurate information then you have every right to reclaim some or all of the money paid.