PPI Claims: What the PPI Scandal Means to You
If you have paid much attention to the news in recent months, you are no doubt aware of the scandal surrounding PPI payments. In case you’re not familiar with the situation, though, here’s a brief summary: over the last ten years, various kinds of loans – mortgages, credit cards, and more – have been sold with payment protection insurance (PPI) attached. This insurance, for which the borrower pays, is designed to protect the lender in the event that the borrower fails to make payments on the loan. It is not, despite what the name might seem to suggest, intended to protect the borrower.
The Origin Of The PPI Claims Scandal
Over the last decade, numerous lenders have been guilty of mis-selling this insurance in a number of ways. The insurance was usually foisted upon the borrower at the point of sale of the loan, often with the implication that the borrower could only get the loan if he or she purchased the lender’s specific policy. Many lenders were not even bothering to explain the policies at all. This was in direct violation of the rules governing the sale of PPI.
As a result, in April 2011 the courts determined that lenders who were guilty of mis-selling PPI were obligated to allow borrowers to make PPI claims for the return of their money. Pursuant to that order, various banks set aside over £12 billion to repay borrowers who had been mis-sold. Additionally, lenders are no longer allowed to sell PPI at the point of sale of a loan.
Who Can Make A PPI Claim?
Knowing whether you have the right to make a PPI claim is actually quite simple. If you have taken out a loan in the past ten years and purchased payment protection insurance on it, then you are potentially eligible. If you were mis-sold – that is, if you were not told that you had the right to look elsewhere for a better deal, or if you were not properly informed what PPI is – then you are likely entitled to file a claim to receive back all the money you paid for your PPI.
How to make your PPI Claim
The process of filing PPI claims is actually quite simple. While you can do it on your own, you will have the best chance for success if you hire a solicitor to help you. A good solicitor can help guide you through the potentially tricky legal waters involved in making a claim, and can make it more difficult for your financial institution to get out of paying you.
Finding a good solicitor can be as easy as an internet search. There are many who are experienced with the process of filing PPI claims. The key is to look for a solicitor who offers a deal whereby you only pay their fee if you win your claim. That way in the unlikely event that your claim does not succeed, you will not end up in a worse position than when you started, due to your solicitor’s fees.
What Are The Odds Of Success
Because this problem has been so pervasive, your chances of making a successful PPI claim are quite good. Numerous financial institutions have set aside large sums of money specifically for this purpose, and the amount of available funds is increasing as more and more people are realizing that they are eligible to file PPI claims.
In order to file a successful claim, you will have to prove that you have taken out a loan in the past ten years, that you purchased PPI at the same time, and, most importantly, that you were mis-sold the PPI by the financial institution that loaned you the money. If you can demonstrate all that, then your chances of filing a successful claim are quite high. With most institutions, the rate of successful claims is well above 90%.
Since the process of filing a successful claim is so simple and the success rate so high, why not consider starting the process of filing your claim today?