Sometimes sold as ASU insurance, Payment Protection Insurance or PPI was packaged with mortgages and other substantial loans such as automobiles. The selling claim was that it would take care of your payments if you find yourself unable to cover your debts due to injury or losing their job through a redundancy. However, loopholes within the coverage meant that the guaranteed monthly payment never arrived when illness or unemployment did happen.
For instance, PPI excludes pre-existing and recurring medical conditions. If you've been sold PPI and you had such illnesses, this may be identified as a mis-sold policy. To be able to claim back PPI, you may have to give medical records for the Financial Services Authority (FSA) for the whole determination.
To make this situation even worse, several clients were not even informed they had bought PPI. The original concept to cover those people who became unable to work was quickly forgotten and rather it turned nothing more than a source of profits for some corrupt finance institutions. This eventually led to thousands of people submitting numerous lawsuits to claim back PPI insurance fraudulently sold to them by some of the United Kingdom's largest lenders to include Alliance & Leicester, HBSC and Lloyds.
Aside from the lenders, some of the UK's major credit card companies were also involved; Capital One and Egg being the most egregious culprits. They all were determined by the High Court to have improperly sold PPI over the last ten years to clients who could not have ever applied the insurance policies. Particularly, those clients that were self-employed, retired, unemployed or had a disease that permanently prevented them from functioning again were defrauded. It has been estimated that greater than 27 million policies have been supplied. 40% of those insurance policy owners weren't even aware that they had purchased PPI.
After countless people had filed to claim back PPI costs, the FSA levied serious fines towards every agency engaged. Every company was fined in excess of 1 Million with Alliance & Leicester being punished for their deceptive practices at over 7 Million. Due to this, lenders established compensation funds specifically for their defrauded customers. Barclays Bank has prepared a fund of more than 1 Billion.
In April of 2011, the Competition Commission had received enough information from the High Court and began issuing their orders. Changes they required in selling PPI now were that information had to be provided to customers on exactly what it was and what their options were to either purchase it or not. This was to be provided in writing, separately from the actual purchasing paperwork. Also, Payment Protection Insurance could no longer be sold at the same time as a credit agreement. A month later, the High Court ruled that all lenders had to review their policies regarding PPI and compensate every customer who was mis-sold the policy. The ruling covered the years of 2005 to 2011 and remains in effect for customers who wish to claim back PPI costs.
Depending on the number of policies sold and for what reasons, you may have a PPI claim worth thousands of Pounds. It is in your best interest to find an agency to help you as there may be policies you aren't even aware that you purchased. Many agencies have a no win/no fee service that ensures you won't have to pay them before your suit to claim back PPI has been resolved.
For instance, PPI excludes pre-existing and recurring medical conditions. If you've been sold PPI and you had such illnesses, this may be identified as a mis-sold policy. To be able to claim back PPI, you may have to give medical records for the Financial Services Authority (FSA) for the whole determination.
To make this situation even worse, several clients were not even informed they had bought PPI. The original concept to cover those people who became unable to work was quickly forgotten and rather it turned nothing more than a source of profits for some corrupt finance institutions. This eventually led to thousands of people submitting numerous lawsuits to claim back PPI insurance fraudulently sold to them by some of the United Kingdom's largest lenders to include Alliance & Leicester, HBSC and Lloyds.
Aside from the lenders, some of the UK's major credit card companies were also involved; Capital One and Egg being the most egregious culprits. They all were determined by the High Court to have improperly sold PPI over the last ten years to clients who could not have ever applied the insurance policies. Particularly, those clients that were self-employed, retired, unemployed or had a disease that permanently prevented them from functioning again were defrauded. It has been estimated that greater than 27 million policies have been supplied. 40% of those insurance policy owners weren't even aware that they had purchased PPI.
After countless people had filed to claim back PPI costs, the FSA levied serious fines towards every agency engaged. Every company was fined in excess of 1 Million with Alliance & Leicester being punished for their deceptive practices at over 7 Million. Due to this, lenders established compensation funds specifically for their defrauded customers. Barclays Bank has prepared a fund of more than 1 Billion.
In April of 2011, the Competition Commission had received enough information from the High Court and began issuing their orders. Changes they required in selling PPI now were that information had to be provided to customers on exactly what it was and what their options were to either purchase it or not. This was to be provided in writing, separately from the actual purchasing paperwork. Also, Payment Protection Insurance could no longer be sold at the same time as a credit agreement. A month later, the High Court ruled that all lenders had to review their policies regarding PPI and compensate every customer who was mis-sold the policy. The ruling covered the years of 2005 to 2011 and remains in effect for customers who wish to claim back PPI costs.
Depending on the number of policies sold and for what reasons, you may have a PPI claim worth thousands of Pounds. It is in your best interest to find an agency to help you as there may be policies you aren't even aware that you purchased. Many agencies have a no win/no fee service that ensures you won't have to pay them before your suit to claim back PPI has been resolved.