If you have taken out a mortgage, personal loan or credit it is almost certain that you were sold payment protection insurance from your lender. PPI ideally covers your ability to repay your debt should you find yourself in difficult circumstances such as injured or unemployed, however, the lenders found a loophole and have been selling PPI to customers who were not eligible for the cover or who did not fit the particulars of the PPI they were sold. If you have paid for PPI you may be entitled to claim this money back. What you may not be aware of is why you could be eligible to claim and why the banks could face a huge wave of payouts

The common misconception is that everyone is eligible for PPI but this is not the case. If you are older than 65, the age of retirement, you would never be entitled to claim PPI as you are likely not in full time employment. If you are self employed you are technically considered a financial risk and no PPI policy would offer to cover you ability to make repayments. If you have a historical medical condition you will be unlikely to be able to get PPI cover as you are more likely to be forced off work. Despite this, banks are more than happy to sell PPI to everyone knowing full well it will never cover them if needed.

This situation has continued with the full knowledge of the Banks and lenders, something which financial watchdogs have frowned upon very much. The government has forced many of the UKs high street lenders to offer refunds to their customers but some have adopted a ‘don’t ask – don’t get’ policy meaning the consumer has to go on the hunt for their money either alone or with legal assistance.

To begin attempting to claim back your PPI payments you will first need to send your bank a letter requesting a full refund. You will undoubtedly receive a long winded ‘no’ to which you will need to duplicate your first letter and in addition declare your intent to pursue legal action and support from the financial ombudsman. You will probably receive a variety of answers ultimately dismissing your claim, albeit wrongfully, on the basis of your lack of authority. The key is perseverance and it will significantly help your chances if you do get the ombudsman involved. Ultimately if all else fails, enlist professional help.

The simplest method of claiming back your PPI is to use a legal agency as they will be skilled and experienced. This will be much less effort for you and much more effective than pursuing the matter yourself, most likely resulting in success. Many solicitors are no win no fee so there is no disadvantage to using them.

There are many companies that offer or specialise in PPI claims and they are fully capable of taking control of everything you need for your PPI claim

categories: loan,PPI,insurance,bank,mortgage,payment protection insurance,lawyers,soliciters,claims,refund,repayment,lawsuit,sue,finance

Refunds for Payment Protection Insurance on loans, mortgages or credit could cost banks well over 4bn after it was revealed that most customers were a victim of a unlawful sale. It had previously been estimated that up to 1.2bn could be claimed by customers who attempted to reclaim payments but this new figure includes the added amount of customers who the banks will be required to give refunds to.

A vast amount of customers have been sold PPI insurance that was not appropriate for them or no needed in their situation. Among those who were persuaded to buy policies were those with long lasting medical conditions, the self-employed and pensioners who, by definition, were ineligible for cover.

An approximation by the FSA shows that insurance brokers may have to pay up to 450m with the rest being paid by a variety of PPI suppliers such as banks. The average amount repayable to those who purchased policies is 2000 which is a significant amount and has sparked large consumer interest.

A number of high street banks have already been fined as the FSA attempts to make examples of them as well as forcing them to offer refunds to all of the eligible customers. High street insurance broker ‘The Swinton Group’ have been fined 770,000 for serious failings and were made to offer a full refund to over 350,000 customers while Alliance & Leicester have been fined 7m.

Financial giants are strongly opposing the plans to regulate and control the future sale of policies. The FSA aims to stop companies putting pressure on customers to buy ineffective policies. Adam Phillips of the Financial Services Consumer Panel, says “for too long banks have regarded PPI as an easy product to sell and make money without considering whether it is really right for the customer

If you think you are entitled to a PPI claim, then visit Dons LLP for the best PPI claims lawyers.