PPI which is payment protection insurance has been the centre of attention in the financial sector for several years now and this does not look like it is about to slow any time soon with the number of PPI claims being made growing each and every month. When you look into this particular scandal it becomes apparent as to why so many claims are being made and why the cost of the refunds and compensation pay outs is soon about to surpass any industry predictions that were made at the start, when the mis selling scandal was initially unearthed.
It has been reported that over 20 million payment protection insurance policies were sold since the development of the product. Many consumers who were sold one policy were also sold another policy, either whilst holding one policy for a loan or credit card or at a different point in time and can now make multiple PPI claims to get their money back if these were mis sold and as each policy is worth 10-35% of the finance that was taken out each time this could be a potentially large sum of money to be paid back.
Customers who have found that they unintentionally became part of this scandal by being mis sold a payment protection insurance policy should look to making a PPI claim as soon as possible. This claim is the essential way in which the money that was spent on the policies which were in effect, useless can be rightfully returned to the customer.
To make a payment protection insurance claim the customer needs to look at their situation at the time they were sold the policy in regards to health and employment and then look at the way in which they were sold the payment protection insurance policy by the banks. There were strong and very specific criteria in place detailing who was and who was not eligible for a payment protection insurance policy and if the customer did not meet this criteria then they should have not been sold a policy. If they were then they were definitely mis sold the policy and will be entitled to a complete payment protection insurance refund and compensation.
The latter point, the way in which the banks sold the policies includes looking at the information that they were given by the banks. This information covers things such as an overview of the terms of the insurance policy and all of the ways in which they may no longer be covered by the policy if circumstances changed such as going from a full time employed position to one which was for instance, self-employed or part time. The bank should have made sure throughout that the customer was fully aware that the payment protection insurance policy was optional and further to this they should have recommended that the customer shopped around the other insurance providers to get the best cover and financial deal for their loan, this was very rarely recommended and a claim can be made on a small of a factor as this.
Finally, if the customer did not know they were sold the policy then this was unmistakably mis sold and a PPI claim can now be started with. As it was such a flawed sales process that was consistently used to sell the policies it is likely that a customer was mis sold the payment protection insurance policies in more ways than one. When making a payment protection insurance claim it is recommended that the customer lists all of the ways in which they were mis sold the insurance policy, this will cut down any potential time being wasted by the banks asking for further information about the claim that is being made. PPI Claims Management can advise the customers that were mis sold policies on all of the information that is required to make a claim successfully in a short time period.
Successful PPI claims be end in a PPI pay out and this is the bank accepting that the policy was mis sold to the customer and as a result, refunding their money. The PPI claims pay-out is a complete refund of all of the money that was spent on the policy so this includes the cost of the policy and any additional charges which is typically the cost of the interest that was paid on the policy if monthly payments were made. Finally as it was through no fault of the customer that they became a victim of the scandal and were made to pay for a product they were unlikely to be able to use a statutory compensation is added on top of the refund, this is worth 8% of the value of the payment protection insurance policy.