What is PPI?
PPI is an acronym that stands for Payment Protection Insurance. There has been some negative publicity about nuisance calls from claims management companies this has caused some people to put up a shield and they have ignored anything to do with PPI. Unfortunately this has blinded many people to the fact that they are owed large amounts of compensation and reputable claims management companies do not cold call people as it’s against our regulations.
Mis sold PPI
Mis-sold PPI claims can vary hugely in size from just a few pounds to £54,000 in one case. The amount of the payout depends on the age and size of the loan or how much you had borrowed on your credit card. Many people do not try to claim as they think their loans were taken out too long ago this is very unfortunate as in many cases go back to 1988 if your complaint is against a bank or building society and the oldest claims tend to be the biggest as all losses need to be compensated with the interest you were charged on the policy and further interest at court rates (8% per annum (6.4% after tax) from the date of each payment you made toward the policy. Over time the effect of the interest is most pronounced on the very oldest claims. It’s not only loans PPI was sold with as many people think. It was also very commonly sold on business loans, credit cards, mortgages and very occasionally on overdrafts. Some PPI was legitimately sold and met the needs of the customer so we are not able to win every case. But in the vast majority of cases people were sold single premium PPI which provided the same amount of cover as a monthly premium policy but was normally far more expensive. The consumer was not informed that this monthly cover could be obtained on the open market for a fraction of the cost of single premium PPI and the terms and details of the policy were rarely fully explained. PPI usually only covered people under the age of 65 or 60 for women however it we have seen cases where these were sold to people over this age who had no idea it was completely useless for them.