PPI was meant to protect you if times were hard. If you were made redundant, PPI couldprotect your credit card payments. If you became ill and couldn’t work, then PPI could repay that loan you took out. It could be used to cover your mortgage. To many people, it seemed like a good deal. It could give you peace of mind so that if times got tough you would not be in extreme financial difficulty because of a loan or a credit card debt. However as a product, it had major flaws. Imagine if you became ill and discovered that your PPI did not cover any pre-existing medical conditions. Maybe you took out PPI and were self employed. Your business failed, and then you realised that PPI does not cover you if you are self employed. It does not cover you if you are over sixty-five. In these cases, you were mis-sold PPI.
Even worse, you suddenly discover that you have had PPI payments added to your loan or credit card repayments without realising it. Or you were told that you must have PPI or you would not get that loan you wanted. These are all examples of mis-selling PPI.
Over the years, banks have taken money through mis-sold PPI which they were not entitled to. They have had what seems to amount to billions of pounds of money which is not rightfully theirs. Now is the time to claim it back as banks have been told by the courts that they were not entitled to this money and must return it when it was mis-sold.
Most Banks are still making good profits from their customers and paying out what should be seen as embarrassingly huge bonuses to staff. From about 2005, when PPI became big business, a large proportion of profits came from this market. Not surprisingly banks are reluctant to give this money back, especially as they will owe you interest.
The battle for recompense has been long and hard. Many people claimed, and many were refused. Banks usually refused PPI claims in the first instance, and only capitulated after a long and hard battle. They used delaying tactics when told by the Financial Services Authority that they had to give back the money on mis-sold PPI claims. They went to court to fight this decision, meanwhile putting all claims on hold. The major wars in this fight have been fought and won by the consumer. You are entitled to claim back the money, but don’t hesitate because the banks will look for loopholes. The money is there at the moment, so if you were mis-sold PPI then the message to the bank customer is clear – claim PPI now.