The Background of PPI
Payment Protection Insurance (PPI) for years was gently forced upon millions of people across the UK by lenders who saw an opportunity to add a little extra financial commitment to their client’s loan or credit card. Competitive interest rates forced lenders into mis-selling PPI – something which they knew would generate much more revenue for themselves than the actual loan repayments.
One high profile example would be Barclays Bank (just one of a host of financial institutions who have been found guilty of mis-selling) who, in 2002 sold an estimated £350 million plus of PPI alongside loans and credit cards. Their profit from that was over £280 million. Unfortunately this is not an uncommon example. All lenders have landed their unsuspecting customers with this unwanted insurance for one simple reason – increasing their profits.
It was decided in May 2009 that PPI policies could not be sold alongside loans. The Financial Services Authority (FSA) and the government took the necessary drastic measure of banning them completely after continuing campaigns from victims of PPI mis-selling, consumer help organisations, the CAB and, probably most influentially, the media.
This now means that anyone with one of these policies is entitled to reclaim their money in full with interest and compensation added in. As we are able to recover PPI from over 6 ears ago, the number of potential claimants will no doubt rise considerably. Could you be one of these? If so, complete the form below, we’ll call you back and you could be claiming back thousands of pounds in no time at all!