If you’ve taken out Payment Protection Insurance (PPI) in the last six years and think you were mis-sold this then you could be entitled to claim compensation. According to Yorkshire based Accident Solicitors Direct , ‘Payment Protection Insurance (PPI) is often taken out alongside loans, mortgages, credit cards, store cards or other finance agreements with the aim of protecting you from going into arrears. However it has been found that many policies were mis-sold, either being unsuitable for their intended purpose or even added to the customers’ loan without their knowledge or consent.’
According to a recent report in the business section of the BBC website, ‘There have been more than 200,000 cases referred to the Financial Ombudsman Service about PPI in recent years, including 100,000 in the past financial year and now 5,000 each week. About three in four complaints have been upheld in the past.’
In April 2011 UK banks lost a judicial review to change the guidelines on PPI and they will now have to look back at past sales of PPI to see whether they were correctly sold, which could cost the banks and credit card companies up to £4.5 billion in compensation. According to the BBC , ‘During the judicial review hearings in January, the court was told that customers would have to be repaid their PPI premiums, plus interest, if the bank or other firm concluded that the customer would not have bought the policy in the first place if they had been fully aware of the policy’s details. A similar reimbursement could be due to those customers that paid for a policy in full up-front.’
If you’ve taken out a loan or a credit card in the last six years and feel you have been mis-sold PPI then you can make a complaint direct to the bank or the company which provided the loan or you can enlist the help of a solicitor to act on your behalf.