The PPI scam has exploded in the UK in the last few years. More than 4 million UK citizens have rightfully claimed their PPI from the firms that they did business with. You too can claim PPI if it was sold to you wrongfully. Many people don’t yet understand what PPI means, what it is supposed to do and how it works in general.
What is PPI?
PPI stands for payment protection insurance. You may have dealt with a bank for:
- A loan of some kind
- Or an insurance policy
In both cases, you have to make monthly payments to the firm. There could be circumstances in the near or midterm future, where you cannot make your monthly payments. It could be because of loss of employment or disability or any other reason. When this happens, the PPI will pay for those monthly payments.
A PPI is a kind of guarantee that helps both the financial institution and the customer to ensure that payments are made on time. It can cover payments for about 12 months. In some cases, if the PPI is higher, it can also cover you for a greater period of time.
When you sign up for a loan or an insurance policy, the PPI is usually included in it. The PPI is lumped into the initial loan and interest is charged on it and included in the monthly payments.
What banks did
Many people did not even know that something like the PPI existed. Also, banks did not make millions of customers aware of it when they signed up for the loan. Therefore, this was a payment that the customer unknowingly made to the banks.
Over the years, it has been estimated that UK customers have lost over €15 billion because of the PPI. Banks profited immensely from this and they therefore let it continue even if it was illegal. Here are some ways they added the PPI without informing customers:
- They charged PPI from customers who were not legally eligible for it for some reason
- They overcharged on the PPI
- They told customers that it was mandatory, when in reality it was optional
How to reclaim PPI
After a recent court ruling, banks have had to set aside €15 billion from their profits in order to return the PPI for customers who claimed theirs through a formal complaint. Check your latest loan payment invoice to determine whether you have been paying for the PPI. You can also check the original policy documents to verify.
If you have indeed been overpaying to banks, you can lodge a formal complaint with the bank. The banks usually refund you the PPI within a few days after verifying the details. The settlement amount depends on the policy.
If the bank does not agree that you are eligible to claim your PPI or if the settlement is lower than you expect, you can:
- Write a second formal complaint to the firm
- Lodge a complaint with the FSCS and FOS
- Take help from a solicitor to handle the claims
These three options will ensure that you can claim your PPI and get back the money that was rightfully yours in the first place.
This article has been written by Robert Lowell and they help you file a claim to get back your mis-sold Payment Protection Insurance charges back. To check out their services in detail and fees, please visit their website.