Over some period of years, banks and other lenders were discovered to have mis sold ppi policies, leaving many people broke. It is upon an individual who is owed money through this scandal to reclaim any money owed. The question is how much one is entitled to.
There have been numerous claim successes for people affected by the mis-sold policies and since the hold was lifted in the month of May 2011, there have been increasing claims being given in quicker time scales. Half-year results that are in reveals that big banks were forced to reserve even additional funds for victims of mis sold ppi’s. The following is a breakdown of what some banks have set aside for the victims: Lloyd’s £4.3 billion, HSBC £745million, Barclays £1.3billion, Santander £731million, Royal Bank of Scotland, £1.2billion, Co-operative £90million, Nationwide £119million. Slightly less than half (£4.8billion) out of the £10b pot is already paid out. This means that there are tens of thousands that are yet to be paid by the banks or requested by clients.
The Financial Times reports the average compensation claim stands at £2,750, and the individuals owed PPI redress basically have 4 PPI policies that they may claim on, each for almost £3,000. With this amount due, it is hoped the banks will expedite the claims to refund the clients, though there are considerable delays in assessing and processing claims.
With this volume of mis sold ppi claims, FOS is clogged up and is not able to quickly process this deluge of complaints. It takes a long time to settle the claims. It is advised that one should hire a reputable advocate when he or she wants the mis sold ppi claims to be settled quickly. Without an advocate, the PPI claims might be unfairly denied, subjected to some low-ball offer, or it may be left unaddressed by the lender. However, with some help the claims may be given priority and fast-tracked for decision and payout.
It was a very widely used practice for banks to secretly charge their customers with an insurance which would protect them if they became unable to finance the payments on their loans. This insurance is called a Payment Protection Insurance, commonly referred to as PPI. However, in many cases, the banks mis-sold that insurance to people who did not qualify for it. In the rest of the article, we will discuss what PPI claims are and whether you are eligible for one.
Firstly, you will have to find out whether you have been paying for the PPI. All in all, if you have had a credit card, mortgage or any other type of loan, the insurance might have been mis-sold to you without you realising it. So, collect all your financial paperwork and peruse it for any references of PPI. Usually, the bank would add it in your repayment statement. Sometimes, it would be written down as a “loan protection cover” instead of the actual name of the insurance.
After you have found out that you have been paying for the PPI, you only have to ascertain that it has been mis-sold to you. In other words, you have to make sure you are not eligible for it.
If you have done everything so far, you will be just one step away from claiming your refund. All you have to do is collect the relevant documents, scan them and send them to the institution to which you have been making your PPI payments.
After the PPI scandal became public knowledge, many people have filed PPI claims, and have subsequently, received sizeable refunds. The PPI claims success rate is as high as 85 per cent. So, you should not leave the matter unattended because the average refund on the successful claims is about three thousand pounds.
The insurance industry is based on the sound idea that the unexpected can happen at any time. When the unexpected does happen, the insured party will get compensated by the insurance company. This is why people insure their homes, cars and businesses. It also makes sense to take out an insurance policy in case people who owe you money default. This form of insurance is called the payment protection insurance (PPI).
In the UK, the PPI has been making waves for the wrong reasons. There is nothing basically wrong with the PPI. Businesses owners who feel they need the PPI can take out this policy on their own initiative. The problem is that millions of people in the UK were sold this policy under false pretenses by banks and other financial organisations.
Some people bought the policy without really knowing what they were buying. In other cases, people bought these policies because they were told that getting certain financial services depended on buying the PPI policy.
The point is that this policy was missold to millions of people in the UK. It follows that these people have grounds to reclaim the premiums they have paid out on the policy. If you fall into this group of people, you can start your PPI claims by taking another look at the policy contract.
The first step is to determine if you actually have a PPI policy or not. This is because these policies were sold under different names. Once you can establish that you did not know that you were sold this policy, you can start your PPI missold moves by getting in touch with the bank or financial organisation which sold you the policy. If this organisation does not give you the answers you need, just get in touch with Financial Ombudsman Service (FOS) near you. The FOS will help you in your PPI claims. This is the right way to start your PPI missold battle.