Anyone who has taken out a loan in the past few years will be well aware of the costs involved, and when it comes to payment protection insurance (PPI) they may also be aware that they can claim back the fees on the policy if they can prove it was mis-sold in the first place. PPI is an insurance policy designed to cover the monthly repayments on a loan or mortgage – or any credit agreement – in the event the policy holder is made redundant through no fault of their own, but it is a product that has become tainted in recent years thanks to widespread mis-selling.
PPI Claims for Mis Sold Policies
The banks, and other lenders, have been told that they must pay back all fees pertaining to mis sold policies, but how do you know you have been mis-sold a PPI policy? The regulations have always stated that customers should be given the opportunity to shop around for the best PPI yet, in many cases, consumers were led to believe they were obliged to take out the lender’s own policy. Furthermore, some borrowers were sold policies without being told about them, and others have been paying into PPI policies that would never have been of use to them.
Deadline for PPI Claims
One of the problems facing the banks is that they see no end to the saga; so far it is estimated that around £14billion has been put aside by the banks to pay back the fees on mis-sold policies, and they are constantly revising the amount they need to repay. This has led to calls in some quarters for a deadline on claims, although such a proposal has yet to be agreed upon. For the consumer the best advice is to get a claim in as soon as possible, and it is also sensible to use an online PPI calculator to get an idea of the amount they may be entitled to.
As just one of many scandals to have affected the banking industry the PPI saga is showing no signs of coming to an end, and it remains to be seen exactly how much money the lenders will need to pay out in the long run.