UK PPI Claims

PPI (payment protection insurance) is a policy that is mostly sold with different types of credit agreements. It has been designed to cover the monthly payments in case policyholder is unable to pay installments due to the accident, illness, or loss of job. It was being sold in the UK since past 18 years, and its sale was finally banned by FSA in 2009. Although PPI itself is not a bad product, but the main problem is the way in which it was sold by the lenders to the millions of UK residents.

As per Citizens Advice Bureau, about 76 percent of PPI policies in the UK were mis-sold on mortgages, loans, store cards and credit cards. In most of the cases, lenders were at fault as they refused to grant loan or credit card to the borrowers until they purchased the PPI policy. This forced many to buy insurance that was either not needed, or they could not afford. In most of the cases, the policies were over-priced and packaged with several exclusions for part time and self employed people.

Since the ban came into force in 2009, any person who has bough this policy is legally entitled to recover the amount with compensation and interest. It is well known that many borrowers were not even aware that they have purchased the PPI policy with their credit card or loan. Therefore, it is necessary for such people to understand that they were indeed duped by the lenders and they are victims. Another major concern is that many victims feel that they do not have time for handling the claim process. Others feel uncomfortable standing up to big banks or financial institutions that had mis-sold PPI policies to them in the first place.

If you are unsure how much you are eligible for the claim, you can use online PPI claims calculator which is available on many websites. Aside from that, you can get in touch with the professionals who have experience in handling the claim process against lenders and have successful track record to recovering the amount for their customers. Many of these companies work on no-fee-no-win basis and take a small percentage of the claim and have high success rate exceeding 80 percent or more.

According to a detailed report by FOS (the Financial Ombudsman Service), eight out to ten claims are ruled in the favor of customers. Currently there are more than 28 millions people in the UK who were mis-sold PPI and are entitled to compensation.