Chances are that you have recently heard about the mis-selling of payment protection insurance (also known more simply as PPI). This was a type of insurance that was infamously mis-sold over the past decade or so and as a result many people are now making claims for compensation.
Throughout this article we will be talking about payment protection insurance and touching on topics such as how PPI was first introduced, an overview of the banks and PPI, and of course we will be giving you some advice and guidance on how you can make a claim for compensation – as well as how you can receive the most compensation.
How PPI Was First Introduced
PPI was first introduced in the 1990s and developed a bad reputation surprisingly fast. Even though payment protection insurance does have its benefits (which we will mention later in this article) – it was commonly sold to almost anyone who walked into a bank asking for a mortgage, personal loan, or even a credit card. Fortunately, people quickly became aware of this issue and were much more hesitant to deal with banks and lenders. If someone did happen to deal with a bank or lender, they would make sure to read through the terms and conditions very carefully.
With regards to the benefits of payment protection insurance, you can probably already tell by the name that it was a type of insurance put into place in order to protect those who were unable to pay back their loans. So in essence, PPI would have been more suited to those people who were at great risk of losing their jobs (becoming redundant) and also to people with major health risks and concerns.
An Overview of the Banks and PPI
When PPI was first introduced, banks would try to sell the insurance as much as possible. This might have seemed beneficial to them at the time however, many banks have had to repay billions in compensation – so in the end nobody really won.
One of the most infamous banks during the PPI scandal was Lloyds, who have made some of the largest repayments in the UK. This has made many people wonder if banks can be trusted or not, which is definitely a valid point to bring up. It would be good practice to be more careful around banks and thoroughly read through the terms and conditions when taking out any loans, mortgages, or credit cards.
Making Your Claim for Compensation
If you still haven’t made your claim for compensation then it would be good to know that there is still time. You should go through your paperwork and see if payment protection insurance was included with any money that you have borrowed from the bank recently.
If you find out that you was mis-sold PPI then there are two different routes that you can take. We’ll give you a quick overview of these below:
1. Filing the claim yourself – this is something that puts many people off making a claim. Dealing with your bank or lender can often be a very stressful and tiring process. However, if you do wish to go down this route than the general process will involve writing the letter to your bank or lender stating that you would like to make a claim for compensation.
2. Using a claims management company – this is the easiest and most time effective method, and so it’s a method that many people use. A claims management company can help you with everything ranging from simple advice and guidance all the way to filing the claim on your behalf. For those people with busy schedules, this is by far the most attractive option.