In April 2011 banks and financial organisations were found to be mis-selling PPI after the high court sided with the Financial Services Authority (FSA).
In 2010 the FSA found millions of people had been mis-sold a PPI policy and began a process to help people claim compensation.
What is PPI
Not all PPI has been mis-sold and it can be a perfectly sensible financial product for a lot of people with credit cards, mortgages, etc.
Payment protection insurance allows consumers taking out financial products to insure repayments will be made when unexpected events occur, such as unemployment, illness, etc.
An example of this is when PPI has been taken out with a credit card and someone loses their job and isn’t able to make monthly repayments. The PPI will cover the repayments for the credit card until the person is back in employment or the end of an agreed period with the PPI policy.
How PPI Was Mis-Sold
Financial organisations were found to be guilty of mis-selling PPI because they didn’t give the customer an option to take it and/or didn’t explain it fully. A lot of people were forced to pay for PPI who didn’t need or want it.
Claim PPI Compensation
In order to claim PPI compensation you will need to check if you have taken any out, check if it’s covered under the list of actions which would deem it mis-sold and contact the company with your complaint.
Alternatively you can take the easier route and contact a company who will know whether you are eligible early in the process and will do all the work for you.
They will collect all necessary paperwork, put in the claim and deal with each company all on your behalf.
Although it is important the company you use only charges on a success basis, this makes sure you only pay if they make to claim back compensation for you.