Sometimes sold as ASU insurance, Payment Protection Insurance or PPI was packaged with mortgages and other substantial loans such as automobiles. The selling claim was that it would take care of your payments if you find yourself unable to cover your debts due to injury or losing their job through a redundancy. However, loopholes within the coverage meant that the guaranteed monthly payment never arrived when illness or unemployment did happen.
For instance, PPI excludes pre-existing and recurring medical conditions. If you’ve been sold PPI and you had such illnesses, this may be identified as a mis-sold policy. To be able to claim back PPI, you may have to give medical records for the Financial Services Authority (FSA) for the whole determination.
In making this situation even worse, numerous clients were not even conscious they had purchased PPI. The primary thought to cover those people who had become struggling to work was swiftly forgotten and instead it became nothing but a source of revenue for most dishonest financial institutions. This inevitably led to thousands of people submitting countless lawsuits to claim back PPI insurance fraudulently sold to them by some of the United Kingdom’s biggest lenders that include Alliance & Leicester, HBSC and Lloyds.
Aside from the lenders, most of the UK’s largest credit card providers were also involved; Capital One and Egg being the most egregious culprits. They all were decided by the High Court to have improperly sold PPI over the past ten years to clients who could not have ever applied the policies. Specifically, those customers that were retired, self-employed, unemployed or had an illness that completely stopped them from working again were defrauded. It’s been estimated that around 27 million policies happen to be supplied. 40% of these insurance policy owners weren’t even aware that they had bought PPI.
After thousands of people had filed to claim back PPI costs, the FSA charged significant fines against every agency involved. Every business was fined more than 1 Million with Alliance & Leicester being punished for their fraudulent practices at over 7 Million. For this reason, lenders established compensation funds particularly for their defrauded customers. Barclays Bank has organized a fund of more than 1 Billion.
In April of 2011, the Competition Commission had received enough information from the High Court and began issuing their orders. Changes they required in selling PPI now were that information had to be provided to customers on exactly what it was and what their options were to either purchase it or not. This was to be provided in writing, separately from the actual purchasing paperwork. Also, Payment Protection Insurance could no longer be sold at the same time as a credit agreement. A month later, the High Court ruled that all lenders had to review their policies regarding PPI and compensate every customer who was mis-sold the policy. The ruling covered the years of 2005 to 2011 and remains in effect for customers who wish to claim back PPI costs.
Depending on the number of policies sold and for what reasons, you may have a PPI claim worth thousands of Pounds. It is in your best interest to find an agency to help you as there may be policies you aren’t even aware that you purchased. Many agencies have a no win/no fee service that ensures you won’t have to pay them before your suit to claim back PPI has been resolved.
Go Claim PPI have a 100% success rate at helping people to gain compensation for valid PPI Claims in the UK.
Author: Mark RichardsThis author has published 2 articles so far.