Why Claiming PPI Compensation is Important
Payment protection insurance (PPI) was a policy that was meant to protect repayments on loans, credit cards, store cards and so on, in the event you were too ill to work etc.
In theory, it sounds a wise financial move to make but, there was a problem – the policy was sold to people that had not hope of making a successful claim, simply because they were not covered. And, what adds heat to the scandal, the banks and lenders already knew the majority of their customers would not benefit from the policy.
It was also an expensive policy. In other words, customers were paying inflated monthly premiums for a policy that offered little if any cover.
After years of wrangling and legal arguments, the way was cleared for customers to claim their cash back. And there are four reasons why claiming PPI compensation is important:
Sends a clear message to your bank or lender
With the possibility of PPI 2018 deadline looming, by not claiming your money back you are almost sending a message to your bank or lender that it is of no consequence. There have been all kinds of arguments between consumer organisations, banks, lenders, regulatory authority and Government departments about the selling practices relating to PPI and to some other financial products too.
The banks took your money for a product that was defective. If this happened with a shop bought item, you would probably take it back. Do the same with PPI!
It is your money
As already stated, PPI was an expensive policy. The high monthly cost was inflated by the fact that not only were you unlikely to be covered by the policy but, if you did attempt to claim, the chances of it being successful was low – as few as 15% of PPI claims were successful.
Also, the banks and lenders were criticised for the slow pay-out rate too.
Puts you back in the financial position you would have been in if you had not been sold the policy
This is the crux of compensation; the bank or lender who mis-sold you PPI – and remember, you could have more than one claim – should when they compensate you, put you back to the financial position you would have been in prior to being sold this policy.
In other words, all the premiums, including any interest, as well as any costs or fees associated with the policy.
A welcome windfall in difficult economic times
For many people, whether it was £500 in compensation, £5,000 or £15,000, PPI compensation has been a welcome and much-needed windfall.
Call Payment Protection Scotland now to start your claim.