Payment protection insurance and subsequent PPI claims have been all over the news recently. According to reports, Britain’s banks anticipate being forced to make compensation payouts totalling as much as £5 billion, with Lloyds bearing the brunt; its bosses have announced that £3.2 billion has been ring-fenced in order to meet forthcoming compensation demands.
If you’ve missed the whole spectacle, or are feeling a little confused about the PPI fiasco, here’s a quick re-cap:
PPI Claims: The Story so Far
PPI stands for payment protection insurance, an optional extra which banks introduced as cover for loan customers should they find themselves unable to meet repayments.
However, the insurance was rarely paid out, and many customers were either charged for it without being first informed, or were misled by unscrupulous sales-people.
It is estimated that around 13 million PPI products have been sold in the UK, and in 2006, the UK public paid £4.4 billion in premiums. Of these 13 million products, experts suggest that between 50% and 70% of policies have been mis-sold.
As the banks’ underhand methods began to emerge, PPI claims were launched by disgruntled customers in an effort to reclaim some of the money they had been tricked into spending by their banks.
In a bid to stall their customers’ PPI claims, the banks launched a legal challenge, however this was abandoned at the beginning of May, and now the FSA is demanding banks speed up the compensation process.
I think I have been mis-sold PPI, what should I do?
If you think you have been mis-sold PPI and need to speak to an expert about making a PPI claim, contact the team at ClearLaw. You will speak directly with an experienced lawyer who will provide legal advice and guidance, helping you take the first steps towards reclaiming the money you have lost.