You might have entered into an agreement with banks such as Halifax or Barclays for getting a loan, mortgage, or credit card. However, you may be also paying for Payment Protection Insurance or PPI over several years on such personal aid, which might have reduced your bank balance by thousands of pounds.
Right now, Payment Protection Insurance and its claims are at the nucleus of the grand scandal that has pushed the UK banking sector in darkness since the past few years. Surprisingly, it is still ongoing because of the thousands of claims that are pending to be fulfilled. In 2011, the High Court ruled against the banks and commanded to re-pay all its patrons to whom they mis-sold PPI. This order was the outcome of the proven accusation that the PPI policies were sold in an illicit manner by these banks.
Why PPI and What Was its Actual Purpose?
PPI or Payment Protection Insurance was said to be an optional policy that a customer can obtain along with a credit card, mortgage, loan, and any credit type. It actual aim was to ensure the repayments if the policyholder no longer can repay the debt, for instance, due to loss of job or sickness. Despite being a useful financial aid in most cases, the PPI policy was neither applicable to several social aspects nor was it a mandatory offer to be given with the aid while seeking financial help.
Why PPI was Mis-sold?
There was only reason to mis-sold PPI – Extraordinary profits! This was possible from the premiums the banks got from higher sales of PPI policy. The banks considered selling the policy of payment protection insurance as a giant cash generator in the form of premiums from all those who came to them for financial aid; the number of such people is really more even these days. Therefore, they easily managed to sell the policy to more number of people. It is estimated that the lenders could easily generated more than £4 billion pounds a year via mis-selling of PPI.
This mis-selling was done by the sales people of the banks, several of whom were encouraged to do so by the lure of well-paid bonuses in case they could make up for higher sale targets. It has been found that the PPI was mis-sold to almost 20 million people, says the Financial Services Authority (FSA) that also imposed fines on several big banks in the country soon after investigations. The authority also issued guidelines as well as regulations for the banks on how they should compensate those to whom the PPI was sold incorrectly.
Today, thousands of people are getting lucrative checks daily from their associated banks without leaving the comfort of their home. Further, countless others are realizing that they were the victims of this big scandal due to which they are already into the process of claiming their money.
What PPI Claim Means?
A PPI claim refers to the compensation for returning your PPI premiums that you might have been paying until now but after being sold in a wrong manner due to which it called a mis-sold PPI. Therefore, chances are high for anybody who has taken a financial aid from the UK-based banks to claim PPI. In case you are mis-sold PPI, you can also claim back your money. However, prior to that, you need to check out your loan, mortgage, or credit card offer by viewing the documents or approaching the lender bank to confirm that you were mis-sold PPI.
How a PPI Could Have Been Mis-sold to You?
- The sales advisor did not tell you anything about it.
- The sales advisor persuaded you to buy the policy without telling its exclusion terms or validity period that is usually of one year.
- You were being told that it is mandatory to take out the policy.
- Bank or banks recommended getting the PPI although it was not necessary or non applicable yet presented it as very beneficial.
- You were pressurized indirectly for the policy.
Which PPI Claims You Can Easily Manage to Get?
- Barclay Card PPI claims
- Barclay PPI claims
- Halifax PPI claims
- HSBC PPI claims
- Lloyds TSB PPI claims
- MBNA PPI claims
- Natwest PPI claims
- Santander PPI claims
- RBS PPI claims
What Statistics Say about PPI Claims
The customers of aforementioned banks were only ripped off since many years due to which each one lost thousands of pounds on an unnecessary, non-mandatory insurance policy. According to the recent statistics, customers of Halifax, Lloyds TSB, and Bank of Scotland have been given the full compensation from a reserve that has touched £6.7 billion. Because of delay in repayments to more than 1,00,000 customers, this group was furthermore fined £4.3 million.
This is true despite the fact that the UK banks have created a provision of multi-billion pounds for reimbursing their customers to whom the policy was mis-sold. While Lloyds Banking Group has created a fund of £3.6 billion, HSBC has a reserve of £ 745 millions. According to the RBS, it needs to shell out almost £950 millions.
However, the HSBC PPI claims have made the bank to give away £757 million so far, while Barclays PPI claims have reached up to a settlement of £1.6 billion.
What You Need to Do?
PPI Claims payouts are further expected to rise even this year although the processing rate is a bit slow, which is 60%. This means that 6 of 10 claimants are getting their money back. This is actually a nice payback rate for all those who are positive enough to claim money back. All you have to do is complete our online PPI claim form and we will search on your behalf.
How Billions of Pounds are Refunded as PPI Compensation
Claiming your money back in the form of compensation can be a bit tiresome task but it is advisable to do so because you will be paid directly without any extra charges or upfront fees that would otherwise go in hiring an agent or authorized claims management company. When you fill the questionnaire form, just ensure that all details you fill in are precise, complete, and verifiable. Once ensured, you need to post the form to the concerned bank’s postal address mentioned on the corresponding official site.
After posting, the bank officials validate the form details against their records. The decision can either be ‘rejected’ or ‘accepted’ as per their verification outcome. Just keep in mind that not all customers are entitled to this compensation but many are, because each case is different. In case you are unhappy with the rejection answer or are feeling that it is taking time for the bank to pay you back even after accepting the claim, you can directly contact Financial Ombudsman Service (FOS) for the same.
FOS is a self-governing financial authority in the United Kingdom, which has the ultimate power to fight for your rights on your behalf with any organization in the financial sector. You can take your complain to this authority, which will then verify your details with that of the bank under concern. If it finds that the fault was at your end such as false details or non-verifiable information, it will ask you to get back to the bank. Similarly, if the fault it of the bank, it will order to give all the owed money. The final decision of this authority is binding on both the parties finally.
In short, if you are entitled to get compensation, the money is bound to come back to you. Do also remember that you are not legally liable to continue paying the premium of PPI. All you have to do is write a simple formal letter to your bank to cancel immediately the contentious policy.
Do also keep in mind that the process for apply for a PPI claim against a bank differs as per the requirements of that lending bank. Usually, each bank has different backgrounds as well as conditions when it comes to paying the PPI claims. Therefore, as a tip, start the PPI reclaiming process by researching a bit about the specific bank you are willing to file against.
Get Your Money Back if it is Rightfully Yours
Do not hesitate to claim what is yours! In fact, after the High Court ruling, the banks are now legally liable to give away 100% of what a valid customer would claim. Not only that, the banks are also ordered to pay the interest as a gesture of good will to those who have mis-sold PPI policy. Therefore, you are bound to get much more than expected, provided you have a fully valid claim to make.
Payment protection insurance has certainly become the most complained financial offer ever but it is up to you to prevent letting your money go for ever. So, start claiming today!