If you had taken a loan out a few years ago for a mortgage, buy a car or even purchased items on your credit card, You may have been caught up in the PPI scandal that has come to light in the UK and may be considering ppi claims along with many others. It has been made public that many banks have made their customers pay for payment protection insurance without even informing the consumer of this fact.
How did this happen?
It has been found that banks had made it sound compulsory that the borrowers have to pay for the insurance and many of these financial institutions even gave their employees bonuses if they include the PPI in the contracts when loans are given out.
Why did banks do this?
It is a matter of risk and even though it is not called for or required by the financial regulations, banks often decided to safeguard themselves and get the consumer to take out a payment protection insurance in favor of the bank so that the bank will get their money back no matter what happens. In many instances, it did not matter if the borrower was creditworthy or not, the bank would give out the loan and in case the person cannot pay back they will be safe.
After the revelation, many people have been claiming back the payments they made for PPI to the banks, and if you are in the same situation, you should consider applying for your request immediately. Do not let time go by and delay the process as there are limits on time and you may not be eligible after a specified date to claim your payments.
Since many banks levied the PPI payments on the loan amount, they even charged interest on this, and all these amounts could be claimed back.
Hire a Claim Management Company
If you are unaware of your current situation and do not know how to submit a claim, you can consider using the services of a claim management company. They have experienced solicitors who will know how to apply and get the maximum claim on your behalf. There are some firms that will only charge you a small 12% of the amount which will be nothing as you will not have to do all the paperwork and they will take care of all the red tape for you.