Many of us have heard of Payment Protection Insurance (PPI), it is, after all, the largest scandal to have happened in the history of the UK financial services industry. Not so many of us know the details.
A quick recap: PPI is a type of insurance that covers the repayments for 12-24 months on a loan, mortgage or other credit agreement if the customer is loses their job or is not able to make repayments because of sickness or injury. After a large scale investigation by the Financial Services Authority (now called the Financial Conduct Authority), it was found that many policies were improperly sold to customers and that many regulations were not met.
This discovery lead to the PPI scandal coming to light and the matter proceeding to the highest courts, where it was ruled that anyone who was mis-sold PPI should be able to claim their money back – the premiums paid plus compensation. To date, thousands of people have made claims to get back their money, and many more are set to do so. The banks and other lenders have so far paid out and put aside in excess of £20billion to make repayments, though many expect the final figure to exceed this by far.
The question: Have I got PPI?
It is important to know that many people have or have had PPI and do not even know so. Part of the scandal was the unknown inclusion of the PPI on to customer’s borrowings without their knowledge or consent. Therefore clearly – if you were not aware that you had PPI on your borrowing then its most probable that you were mis-sold the policy.
A good place to start is by checking all your loan, mortgage and credit agreements over the last decade. Check old paperwork or if you no longer have it, check your credit file which will list all your previous credit agreements. PPI also goes by the name Loan Protection Cover and called ASU (Accident Sickness and Unemployment) cover.
There are other types of mis-selling, so even if you know you knowingly purchased PPI, you may have been sold it in a manner not within regulations. For example, at the point of sale, you should have been given a full explanation of your right to shop around for the best PPI deal. In a large number of cases this was not followed and the customer was led to believe they had to take the bank’s own policy. If this happened to you, you are also entitled to claim back the fees on your PPI policy.
Who Can Make PPI Claims?
Anyone who thinks, with reasonable evidence, that they were mis-sold a policy can make a PPI claim and get back the fees on mis-sold policies, plus compensation.
To make your claim, you can go to your bank and apply for a PPI refund directly through their complaints department and go from there. Alternatively to make a claim for your mis-sold PPI you can use the services of a claims company who would sort the matter out for you. Be sure to use an experienced and reliable company such as at http://www.freeppicalculator.co.uk; experts who can take all the hassle out of the claims procedure for you.