Payment protection insurance, also known as PPI was supposed to cover loan or other credit repayments if an individual was unable to make their re-payments due to illness, unemployment, or an accident.
PPI was often sold alongside loans, mortgages, credit cards, etc.
However millions of people throughout the UK were mis-sold these types of ppi policies, making them eligible to file PPI claims and be compensated.
If you are one of the thousands of individuals who might have been mis-sold PPI, chances are you might even still be paying for a policy that you do not need or cannot even claim on.
However, you may be eligible to file a claim to get back the money you have spent on a payment protection insurance policy.
Common Methods Used To Mis-sell PPI
Just a few of the many reasons why you may have been mis-sold PPI include:
- You were pressured into taking out PPI
- It was not made clear that the policy was optional
- You were advised to take out PPI even though it was not suitable for you
- You thought PPI was a condition or would increase your chances of obtaining a loan
- If any information was not explained. This would include self-employment or pre-existing medical conditions not being covered under the policy
- PPI was sold to you or added onto your loan without your knowledge and/or consent
- It was not made clear to you that you would have to pay interest on the cost of PPI
- It was not made clear to you that the PPI cover would end before the loan was repaid.
These are just a few examples of how these types of policies are often mis-sold by banks and/or lenders. There are many other ways PPI has or can be mis-sold to individuals.
If you are unsure whether or not you have been mis-sold a policy you can speak to one of our friendly ppi claims specialists on 0800 902 0525 and we will help you to discover if you were mis-sold PPI and how you can file a claim to be compensated for the money you have owed.
Why You Should Choose Yes PPI Claims
www.yesppiclaims.com is a trading style of Oracle Legal Ltd. Since 2009, we have helped thousands of people claim back mis sold payment protection insurance.
We are ppi claims specialists here to help you make successful ppi claims. We charge absolutely no up front fees and we will also not hit you with any hidden charges or penalties.
We operate on a *no win no fee policy which means, that if you don’t win your ppi claim, you will not be charged anything for initiating a ppi claim.
A History Of The PPI Claims Scandal
It was recently discovered that the banking industry began aggressively selling PPI to customers after realizing that these types of policies were highly profitable.
In fact, many banks were returning only 15% of their PPI income to claimants, making PPI much more profitable than car insurance and even house insurance.
Barclays and HBOS (now owned by Lloyds) were both shown to be making huge profits off of PPI which prompted an investigation to take place.
Soon after, the FSA began imposing fines for the mis-selling of PPI starting with a £56,000 penalty for the Regency Mortgage Corporation.
Regency had been selling PPI to “right to buy” mortgage customers who would not have been able to claim, or who already had insurance. Many more banks were also issued fines, including Liverpool Victoria Banking Services, Alliance & Leicester, etc.
In 2011 The British Banker’s Association, representing Britain’s banks sought a judicial review against the Financial Services Authority and the Financial Ombudsman Service after the FSA introduced rules in December to stop mis-selling PPI.
These new rules required providers to talk customers through the key features of a policy rather than assuming that individuals will read any relevant documentation or ask questions about the policy on their own.
In addition, providers must also make it clear to customers that PPI is optional.
The ruling of these new guidelines means that thousands of individuals will now be able to claim mis-sold PPI policies and be compensated.
Studies have found that many providers mis-sold PPI to consumers who would never be able to make a claim, while others felt pressured into purchasing PPI policies alongside a loan.
PPI Compensation: Facts And Figures
It has been estimated that the new guidelines to selling PPI will lead to providers having to pay out up to £1.3bn in compensation for new complaints received during the next five years, and up to £3.2bn as a result of reviewing previous PPI sales and pro-actively contacting customers to offer compensation.
Banks in the UK have set aside more than £12 billion to compensate customers for mis-sold PPI and it is thought that the final bill for people wanting to reclaim ppi could be more than double that.
Lloyds Group has put aside at least £6.7 billion so far to compensate customers of Lloyds TSB, Black Horse Finance, Halifax, and Bank of Scotland.
By the end of 2012 it had already spent £4.3 billion on settling claims. HSBC has spent as much as £1.5 billion on compensating consumers who were mis-sold policies. Santander has set aside £538 million to cover claims made from customers who were mis-sold policies by Abbey and Alliance and Leicester.
They claim that they had just 6% of the PPI market. Nationwide Building Society has set aside £173 million and paid out at least £42 million of that. Royal Bank of Scotland has put aside £2.2 billion to compensate customers who worked with RBS, NatWest, Lombard, Mint, Churchill, and Direct Line.
So far customers have claimed £1.3 billion. Barclays has so far made a provision of £2.6 billion across all of its brands, including Barclaycard. It has spent at least £1.6 billion settling ppi claims. Estimates have suggested that the final bill for PPI compensation could add up to a whopping total of £25 billion.