Although new banking malpractices like the LIBOR and FOREX trading scandals made headlines across the world, the scale of these scandals are still not on the level of what happened with payment protection insurance.
The PPI scandal has seen many thousands of people make PPI compensation claims to recover the fees on policies that they have been mis-sold. In fact, the banks and other lenders have so far repaid many billions of pounds to wronged customers, and many people expect that they may face a total bill of far greater than that when the saga finally draws to a close. If you have yet to make a claim, and believe you can, we strongly suggest that you do.
More about PPI
Although complaints about PPI were first known to the authorities that govern the consumer finance world (the Financial Ombudsman and the then named Financial Services Authority) as far back as the early 1990s, the emergence of there being systematic and widespread mis-selling practices only became well known in around 2008-9.
A number of complaints were investigated alleging the mis-selling of policies. Upon closer investigation it was found that mis-selling was widespread, and a number of lenders were fined and the regulations rewritten. The latter regulations are designed to protect the consumer, thus the ability to claim back PPI costs came about. The banks protested and appealed, but High Court rulings in 2011 affirmed that consumers were due money back from the banks and lenders for illegal mis-selling.
Examples of Mis Sold PPI
Many PPI refunds cases involve customers who were not given the right to shop around for the best deal when, in fact, it was their basic right in the regulations to find a PPI policy, if they want it, that suits them. Some customers were not only wrongly told PPI was compulsory, but that it had to be purchased from the lender who was giving the original loan or other credit agreement.
Other customers who suffered from mis-selling were sold policies they either did not need or that would be of no use (as they were too old for it or were self-employed and therefore not eligible). Shockingly, many were not even told of the PPI policy and have been paying out unwittingly. In all of these cases – and there are more – making a claim is a legal right.
Making PPI Compensation Claims
Many people who make PPI compensation claims choose to use a claim company in order to make the process stress free. One such company, Oracle Legal Ltd, offers a no win no fee* deal so that you will not have to pay in the event your claim is not successful. Their team of experienced claims handlers can help you with all advice you need on how to make your claim, you do not even need to have all your old paperwork to hand as they are able to help retrieve the information needed on your behalf – if you choose to use them.
They also give you with the use of a PPI payout calculator so you can get an idea of the amount you may be due back. You’ll need to know the type of credit (loan or credit card etc), the amount of the borrowing, the interest rate paid and the period of time it was repaid over. More accurate figures are only possible once you provide exactly what type of PPI policy it was: single premium policy or monthly.
It is worth noting that an industry average repayment is around the £3000 mark, so it is certainly worth getting the wheels in motion if you think you might possibly have a case. Remember, it is your basic right to claim back costs on mis sold PPI charges, so why not give them a call and see what they can do to help?