Hi: 20° Lo:12°
Claiming back PPI seems to have become a national hobby these days. Millions of ordinary UK customers of many high street banks, credit companies and other sources of finance are waking up to the fact that any loan that they took in the past or credit that they received may have included an extra financial product that was either unwanted or totally unsuitable. That product was PPI or Payment Protection Insurance.
PPI is a very useful thing to have, for anyone concerned about their ability to maintain their loan or credit repayments. Should some misfortune occur in their life that means they're temporarily unable to meet their repayment obligation, they can then rely on their PPI policy to cover the payments for them until they can get their finances back on track.
What's important, however, is that PPI is optional. There's no requirement to have it, but this important point was often overlooked as commission-hungry sellers pressured customers into taking it, or they included it couched in lots of financial jargon that confused rather than enlightened. Many customers didn't even know they had it. In other cases, the customer was happy to take PPI, but often no attempt was made to ensure that the policy was suitable for that customer. PPI is a solid financial product, but different policies have different exclusion clauses that mean the policy holder might be unable to make a claim. For example, if the customer had an existing health condition, it could disqualify them from being able to make a claim. The seller is obliged to check that the PPI policy that they're pushing on the customer suits that customer's particular requirements. Few bothered to check and a huge number of customers were sold PPI policies that the banks and finance companies knew would never pay out.
Many customers learned this the hard way when they tried to make a claim and were informed they didn't qualify. Customer complaints eventually resulted in a 2011 court ruling that found the banks and finance companies guilty of mis-selling. It ordered them to refund all customers who had been-missold PPI. The companies and banks have collectively set aside nine billion pounds to cover the expected claims. Many people have already claimed successfully, while many others are in the process of claiming back PPI either directly or, if they don't want to be bothered with the claiming procedure, via a claims management service who only take a fee if they're successful.
There are many insurance companies that have a wide variety of PPI policies at competitive prices suited to a wide range of customer circumstances. Anyone taking any kind of loan or credit and who also wants to buy PPI can shop around and choose a PPI policy that suits their particular needs.