Consumer Law Blog

Millions of UK citizens claiming back mis-sold PPI

If a person has taken out a loan, a mortgage, or a credit card from their bank in the last ten years, it is more than likely they have been mis-sold a type of insurance called Payment Protection Insurance (also known as PPI). This is a kind of insurance that banks sold to people in case they had trouble meeting payments.

As it turns out, when people tried to claim using their PPI, they were often refused, as many of them were not eligible for the cover it in the first place. This caused a huge scandal which affected the biggest names in banking, including Barclays, HSBC, Natwest, Nationwide and Lloyds.

All of these banks (and other guilty financial institutions) have had to set aside a massive amount of money as a provision for clients who will inevitably take legal action against what is undoubtedly an illegal and dishonest banking practice.

This hasn't just affected thousands of people. It has affected millions across the UK.

If a person did not scrutinise every detail of their contract with their respective bank when taking out a loan, it is entirely likely that they agreed to PPI without even knowing it, and have contributed to monthly payments for it ever since it started.

In an era when people have lost a lot of faith in the banking system, this scandal couldn't have come at a worse time.

Many people are still unaware of the whole mis-sold PPI debacle, but it is essential that they do in order to begin claiming back compensation for what is rightfully and legally theirs.

While the banks have been ordered to ensure that everyone they have mis-sold PPI to are sent letters to call attention to the fact, the sheer amount of people affected could mean this can take a very long time and it is perhaps best for people to take the initiative and file a complaint themselves or do so through a reputable claims company that specialises in winning mis-sold PPI claims.

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