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The Truth About PPI Claims

by PaulMyers

Personal Protection Insurance has not been well sold to the thousands of customers by banks and other financial institutions for the past ten years. A recent court decision has seen a flood of people hoping to make PPI claims requests. There are a few that may not even be aware of this ruling or that they were mis-sold insurance.

The Payment Protection Insurance policy was made as a security measure for people who borrowed money from the financial institutes. This included personal loans and credit cards. The protection was an added monthly payment on top of the agreed loan repayment and provided the bank and the customer a backup repayment plan should the borrower become unable to repay the loan due to illness.

The problem that emerged recently was that the banks, in the majority of cases were not following the correct process for properly selling these policies to customers. A large majority were sold without the client receiving a full explanation of what they were paying for. In many other circumstances, the customers were wrongly told that insurance was a mandatory requirement for loans.

Many other customers had it added to their loan without their knowledge. This has caused a lot of problems for many financial institutions who are now facing having to pay back around nine billion pounds to mis-sold customers. This huge revelation has seen the rise in many companies being set up to assist people making PPI claims.

Banks have been ordered to carry out the refunds, but the recovery process may still be quite complicated. There are some choices available to customers who are trying to get their money back. The choices include, making contact with the loan company directly, submit an application to the Financial Ombudsman or make use of a claim companies services.

The banks were told by the courts to evaluate previous sales and try to determine who was incorrectly sold Personal Protection insurance. However this could take some time to complete the process. The advice from some independent financial advisers is to start the reclaim process yourself by contacting the bank or using one of the other methods.

The PPI claims procedure is for anyone who has borrowed from a bank or some other financial institute in the last 6 or seven years. It may be worth getting some information even if it is not clear as to whether or not the loan was mis-sold. It could mean some much needed funds back in the wallet.

About the Author: Frank Cole

For more information on Payment Protection Insurance visit Legally Confused, the specialist claims management company.

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The Truth About PPI Claims