Payment protection insurance claims are one of the largest scandals in recent years when it comes to the British finance industry, and the figure of almost 40 billion pounds that was paid as compensation is likely not the final number.
Even as you’re reading this, there are probably many PPI claims going on, and the banks seem to be in a very bad position because they are losing cases left and right.
There is already a substantial amount of court rulings that have deemed PPI products unfair, so based on that, any claim against the banks that comes to the court has a high chance of success. And since there are millions of people in Britain that are in some way connected to these products, then chances are there will be millions of pounds more to pay before the whole thing dies out.
What are PPI claims?
Payment protection insurance (PPI) is designed to help people repay their debt even if they encounter difficulties such as loss of job, illness or debilitating injuries. Most commonly, this would be sold along with various loans, credit cards and similar products that have a relatively high chance to cause some debt problems to the client. The thing is that this type of insurance was in many cases mis-sold.
Banks would skip some important details or would even sell this type of insurance to people who weren’t eligible for it at all, which led to some serious complications and the whole policy backfiring hard.
Since the insurance was sold under unclear conditions and in some cases didn’t provide the protection the client was expecting, PPI claims were started to be filed. And when courts started agreeing with the plaintiffs, the whole thing escalated rather quickly.
Also read: 5 Easy Ways to Lower the Burden of Your Home Loan EMI
Are you entitled to a refund?
Don’t know if you’ve been paying for PPI? Well, that’s easy to check because you can get a free PPI check along with your claim. Your solicitor will contact your bank and get your statements from which it will be possible to work out if you’ve been charged and how much,.
If it turns out that you were charged for this, you may get a full refund, plus 8% interest. There’s also the possibility of some additional reimbursement if it turns out that your PPI caused you higher interest rates, additional fees or anything of the sort. So, given that millions of people have this insurance, it’s easy to see why this whole thing has developed into a multi-billion pound case.
Solicitors have also recognized a great opportunity, so they are offering to manage these claims on a no win, no fee basis. Therefore, if you are one of those affected by PPIs, you won’t have to make an initial investment into legal counsel just to get the ball rolling. Get a real expert to help you with all of this, and you could get a fair amount back!
