The payment protection insurance (PPI) scandal is the biggest scandal ever seen by the UK banking industry, and with good reason. The mis-selling of PPI was widespread throughout the 90’s and 2000’s, with over 45 million policies sold by UK banks, lenders, brokers and insurers, making them over £44bn in profit. 5000 PPI complaints a week
Lenders have already paid out vast amounts of money to claimants, over £16bn as of September 2014, with many more people expected to claim and over 5000 complaints a week still being received by the Financial Ombudsman Service (FOS). For anyone who is thinking of starting a claim, it may be useful to research how much of a refund you’re entitled to.
Go to Google and search PPI claims or PPI calculator and you’ll find online tool that allows you to enter details about your loan and estimate the compensation payout that you may be entitled to. They are useful tools, but it is worth remembering that the current average repayment is in the region of £3,000 your entitlement may be more or it may be less.
What is Payment Protection Insurance?
PPI is a widely used insurance package that was intended to help a borrower by paying their monthly repayments on a loan or mortgage should they be unable to do so for a specified selection of reasons. The problem with PPI arose when it was discovered that banks were charging too much for premiums, including PPI without telling the customer and forcing people to take it in order to get credit.
How do I claim mis sold PPI premiums back?
If you want to make a claim you need to have been mis sold your policy. Misselling happened in many ways: consumers were forced into taking out a policy to get credit, they were rushed into buying without being given time to find the best deal, some were sold policies without explanation, and many people were given policies that did not coverthem in the event of the policy being needed.
How Should I Begin A Claim?
There are two ways to make a PPI claim, either alone or through a claims management company. If you go it alone you’ll need to get thepaperwork and complain to your bank first, then the FOS if your lenderdoesn’t do anything. If you go through a company then make sure you get a no win no fee arrangement so that you are not left with a bill in theevent of an unsuccessful claim.