Millions of people were looking for compensation on mis-sold policies. This process was complicated at first and many people went through financial providers to get their money back.
For customers to get their money back they had to produce enough evidence to show that they were not supposed to buy the policy at the time of application.
They had to provide that they were not working at that time or the bank did not provide them the right information. When this evidence was true customers qualified for compensation plus interest.
This was not easy as not many policy sellers bothered to ask whether employed during the time. Some customers were unlucky as some banks rejected their claims even after producing the required information.
Due to this some people gave up and lost the case while others went further and took their case to Ombudsman industry. By using this method 75% of the rejected cases were compensated.
FSA have now made it possible for the other 25% to get their compensation. Maybe your request has been rejected before but you can still go to FSA. They have new mechanisms that will enable you to get your money back.
High court ruling
FSA said that PPI could not be sold within 7 days after applying for a loan. Also some people did not receive enough information about this method and FSA said that borrowers ought to have been provided with the right information during the time of application.
The customers also had to be informed that PPI was optional. These conditions were not taken lightly by the banking industry. They said that it was unfair and it would be impossible to impose these standards. This is when high court was asked to intervene and give the way forward. BBA (British Banking Association) started a judicial review but on April the court gave out its verdict.
What was next
This High Court ruling was a relief to many customers and a blow to the banking industry. Many banks had to start compensating millions of people who were claiming mis-sold PPI. This gave a chance for those people whose claims were rejected before to revisit the matter.
Some banks are not ready to accept defeat and they are seeking to appeal on the ruling. However Lloyds have started paying £4.5 billion they owe their 3 million customers. Lloyds had the highest amount of PPI to pay out followed by Royal Bank of Scotland who held about 18% of PPI market.
What do you do
Maybe you have paid for PPI and you have already completed the payment. However you wasted a lot of your money and you should get it back. Now the matter is simple as you have seen with Lloyds as they have already started paying their customers. If you are their customers and you have mis-sold PPI then expect to receive their letter soon. Also you can seek your compensation even when you don’t receive a letter. Go to your lender and claim what is rightly yours.