The UK PPI Scam

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Payment protection insurance was initially a good initiative until some crooks started taking advantage of unsuspecting clients. This is what has lead to some financial authorities to crackdown on the rising cases of mis-sold PPI. In 2010, the Financial Services Authority crackdown on most financial institutions and established that there were so many mis-sold PPI cases. Most customers were actually confused when they learnt that they were victims of mis-sold PPI. However, claims companies have facilitated the reclamation process and now many clients can breathe easily. In the crackdown, it was further established that actually over 85% of policy holders have tried to make claims which turned futile.

This was a good plan

The PPI is a good plan in theory because it can help one to complete loan repayments. Unfortunately, many PPI providers are not genuine and once you place a claim, you will not succeed in proving your case. It also realized that most of the people that have these policies did not want it but were forced to have it. The crackdown has become serious with most offenders who were found guilty of mis-selling PPI having to pay hefty fines. The process to ask for a refund is quite involving and this is why it is advisable to hire a professional company to handle the issue for you.

Valid reasons for making a claim

In as much as the crackdown has been quite beneficial in cleaning up the industry, there are still so many people that are still confused and cannot tell if they should reclaim their money.  Here is a simple checklist that defines a mis-sold PPI. You should check the following issues and you will be able to understand where you stand and wheter you can reclaim bank charges.

Your PPI is mis-sold if;

  • You were told it is compulsory
  • You were unemployed at the time you took up the cover
  • You did not get sufficient information about the policy before the sale
  • You were not informed of the financial obligation it entails
  • You were made to believe you cannot apply for it elsewhere.

Where to start

If any of the above scenarios define your situation, then find a claims management firm immediately and have your PPI claims process started soonest possible. You should furnish the agency with all the relevant details so as to make the process easier. It might actually take some time before you can actually get a refund but you do not have to worry since the firm you choose will handle the whole process for you as long as they have the relevant experience.