Claim back ppi

Payment Protection Insurance is listed as one of the United Kingdom’s top financial concerns. In 2010, it topped the list of the most useless financial products in the UK. But is PPI really that bad? Well, PPI is a policy that protects you from further repayment of loans, mortgages, and credit card bills in case you get seriously ill, lose your job, or die. What is so bad about that? Nothing, really, except if you never know you were sold PPI! In the UK, millions of people are allegedly mis-sold PPI by banks, financial institutions, and brokers. The only reason why PPI made it to the list of most useless financial products in the UK is because most of the policyholders of PPI do not NEED it.

How did it start?

The PPI scandal began a few years ago, which is the period when the Great Recession started. Consumer groups discovered that banks have been selling PPI by the millions by attaching it to the loans and mortgages that people were taking out at the time. People were not made aware that they were being sold PPI, or that PPI was not in any way connected to the loans, mortgages, and credit cards they were taking out. According to consumers, they were told that PPI was compulsory and that they cannot take out a loan unless they have a PPI policy. Most people obliged to this arrangement. After all, what do they know about financial laws? According to the Consumer Protection Code, no two financial products shall be sold as a single package; they must be quoted separately to avoid confusion and abuse.

As more and more people realised that PPI was not supposed to be compulsory before they could take out loans, and that PPI could be bought elsewhere, anger brewed and reached the Internet. Consumer groups formed alliances online in 2008 and urged Britons to claim back ppi. In 2007, there were less than 700 complaints about PPI in the Financial Ombudsman Service or FOS. In 2008, this grew to 5000.

Feeling the Weight

The FOS is the body that mediates individual financial disputes between consumers and banks. It is already under intense pressure because of the sudden rise in the PPI complaints. Despite the fact that it has increased the manpower dedicated to handle PPI concerns, a lot of people are still frustrated at how slow their cases are being processed at the FOS. Many people have been on the wait list for more than one year, and some cant help but look for other options. Claims companies are also helping people make PPI claims, and they are increasingly popular for PPI claims.

Claims Companies a Good Alternative

Instead of going to the banks who sold them PPI, or the FOS which is clogged with complaints, people are approaching claims companies, who help PPI policyholders make a refund provided they are eligible for a claim. Claims companies will take on peoples cases on what is known as a no win on fee basis. Once proven that PPI is mis-sold by the bank, the policyholder is awarded the refund, 25% of which is shared with the claims company. Claims companies do not usually charge upfront fees, but will take a share of the ppi refunds if the case is awarded to the policyholder.