For many years now, finance companies and banks have been operating on an unfair policy that has made them billions of pounds on profits, and left ordinary people with less money than they should have. Recently, people have begun to discover the terrible truth that they have wasted money on payment protection insurance that they did not want or need. Brokers, banks and financial institutions have been mis-selling PPI and in 2011, banks lost in their attempt to prevent new regulations on how they should be allowed to sell PPI. The financial services, FOS, handled a record number of complaints, which lead to a judicial review in the high court, claiming that individuals should be reimbursed for the money they paid out on PPI if they were mis-sold it.
Mis-sold PPI can come in many forms, from insurance covering loans and mortgages, to credit cards, car finance, hire purchase and various other credit agreements. Since 2003, there are estimated to be millions of people who were mis-sold payment protection insurance, and now, everyone who has been paying out unnecessary funds has the opportunity to take legal action against the financial firms and banks that have benefitted from their loss.
To date, there have been tens of thousands of individuals who have been able to successfully reclaim their PPI payments, with the average individual discovering that they can suddenly become thousands of pounds richer as a result. The legal procedure for claiming back PPI is neither expensive, nor difficult with the right help, and the money received goes entirely to the claimant, as the legal costs are often covered by the other side in a no-win, no-fee arrangement.
Why reclaim PPI?
The reason for claiming your PPI payments back generally boils down to one essential thing: money. The compensation that you can receive for being mis-sold PPI is typically the amount that you have paid plus a percentage of interest. PPI claims usually average around four thousand dollars. With millions of policies having been sold, ninety percent of these policies have been mis-sold, meaning that it is very likely that you could be owed some form of restitution. Getting back the money that you have paid in an improperly sold payment insurance policy can help you during difficult economic times, to:
- Pay off your mortgage
- Pay any extra bills
- Pay for repairs and replacements around your home
- Put money towards a rainy day fund