The Rise in PPI Claimants – Could you be next?

By | February 27, 2013

Regardless of the time of year, or how good you are at budgeting, a little extra to line the pockets is always going to be appreciated. Whether you need a little extra to pad out the savings or your family really deserve a well-earned break, making money from places you least expect could help enormously. If you’ve been paying attention to the news of late, you’ll have noticed the increase in the mention of reclaiming PPI – understand the question “what is PPI?” and you could find out whether you’re eligible for a hefty rebate, which could be a very welcome bonus to spring 2013. Claim management companies such as iSmart PPI, could help your case succeed, too.

PPI, or Payment Protection Insurance, is an additional policy that could have been added to a finance agreement in the past, such as a credit card, loan or mortgage. Although they are rare nowadays, due to the scandal that followed, previously, they were incredibly popular policies with people wishing to protect themselves and their loan repayments, should their financial situation change through redundancy and suchlike. The problem is, in many cases, banks took unscrupulous measures to sell the PPI policies, including selling it despite the individual not being eligible (e.g. retired or self-employed), or claiming that the policy was compulsory in order to be approved, even though it wasn’t.

Since the FSA instructed the banks to inform known victims of mis-sold PPI of their eligibility for PPI reclaim, media hype has gone bananas. Between 4 and 12million letters are expected to be written[1], with many already being posted through letterboxes all over the UK already. These letters will let you know, in clear and concise English, that a PPI policy you have been sold may have been mis-sold and you may have a case to make a claim. The important thing is to pay heed to the letter – don’t just discard it, thinking it’s junk mail with all the other spam making its way onto your doormat. Of course, with the volume of calls and emails you may have received over recent months regarding PPI claims, it’s unsurprising if you thought this was junk too. But if it’s from your bank, it’s likely to be official and you should pay attention to it. The director of the FSA believes that only one in ten will actually read the letter and act on it; make sure you’re one of the 10% – don’t look a gift horse in the mouth!

Last year, the banks paid successful claimants a total of £1.9bn in compensation[2] and this year, the figure is expected to skyrocket. The Bank of England has been warned that the total redress could be over £25bn in the end, even though the banks have only prepared for £13.6bn so far[3]. It’s important that the banks take heed of this information and sort this problem so that customers don’t suffer and justice can be served.

Take the situation very seriously and have a good look through past paperwork. You could find a PPI policy that you never knew about, that could bring with it a substantial reimbursement to give you and your family a fantastic bonus this year.