Photo courtesy of Chris Isherwood
During the month of May 2011, an important verdict was passed by the Financial Ombudsman.
This was during a legal hearing known as the “judicial review” between three primary institutions: the FOS (financial ombudsman), the BA (bankers’ association), and the FSA (Financial Services Authority).
This hearing was in relation to recent investigations surrounding the mis-selling of payment protection insurance and was intended to decide, once and for all, whether or not the general British public would be due compensation, or if the basis on which this insurance product was sold, was indeed fair & honest enough not to warrant refunds to members of the public that commissioned such policies.
The outcome of the review was that many of the policies that had been provided to the public had indeed been mis-sold due to deceptive marketing tactics and bundling these policies into loans, mortgages and credit cards. Also, the legal hearing concluded that the banks must refund members of the public who had been victims of ppi mis-selling.
No waiver was implemented and thus this meant that the banks and other corporations providing ppi to the public must investigate and refund as necessary.
What Does This Mean For The UK Consumer?
It means that it is highly possible & even probable that if a loan, mortgage or credit card has been taken out in the last 12 years, there may have been a payment protection policy attached to it.
There are multiple ppi claims companies, including this one, some of which will offer potential claimants a “no win no fee” scheme, meaning that they can begin a claim with no up-front costs or fees and only pay on success if the claim provides them with a refund.
Potential claimants also have the option to claim their compensation alone, without the aid or assistance of a claims management company, but in some cases the process can be more complex than first expected, so this is not recommended (unless the claim you have is particularly straightforward).
These policies can in fact be investigated, even if they are many years old. This is made possible through not only the judicial ruling, but also due to the private companies’ offering their services in a claims’ management context, who have years of expertise in handling such complaints.
How Much Money Can Be Reclaimed From These Mis-Sold PPI Policies?
The actual amount of money that can successfully be reclaimed is dependent on the size and the number of financial arrangements that have been commissioned by the mis-selling victim.
As a rule of thumb, the greater number of loans, credit cards and mortgages the customer has taken out, the larger the refund, however it also depends on the amount of money that has been borrowed. The protection insurance contributions (premiums) that have been paid out by the customer will be proportionate to the level of insurance provided.
Average ppi payouts are around the £3,000 (roughly $4,600) mark, in terms of the compensation paid out to the affected customer.
Can Anyone Reclaim PPI?
Only if it’s found that the person submitting the claim actually has been mis-sold, the requirement is that you must have taken out payment protection in order to be refunded compensation. Otherwise you would be claiming a refund for a product that you have not actually purchased, and thus the claim would be fraudulent.
If you suspect you have been mis-sold ppi, it is recommended that you contact a claims’ agent in order to allow them to investigate, as there have been a number of people who have successfully claimed compensation after being unsure they were owed such in the first place.
How Long Do These Claims Usually Take To Complete?
Typically these cases take around 3 months to reach completion. There is a backlog of complaints that are being processed by not only the corporations called into question, but also the financial ombudsman.
Some claims are much faster, however this usually depends on 3 factors:
- The availability of information provided to the company being claimed against.
- The complexity of the case that has been submitted.
- Any existing backlog of complaints that the particular company/corporation is processing at the time of submitting the case.
It is advisable that if you suspect that you have been mis-sold the insurance, you must act quickly in order to ensure that you receive attention as early as possible & avoid any further backlogs.
This article has been provided by Gibson Blake Claims Management Ltd. They work exclusively to provide services for PPI claims, or “Payment protection insurance” claims. They are an approachable, friendly company that offers verification services, guidance and assistance on the application of PPI claims. Gibson Blake Claims Management Ltd. provides reasonable fees and years of experience to their clients. You can check out their site and services here.
