Is it fair to make a mis-sold PPI claim?

Are customers taking advantage of the banks?

by Russell Shackleford, 16th August 2011

PPI claims are erupting all over, with millions of people suddenly deciding that they want to make a claim against their bank or building society. But is it fair play to the consumer, or just a new gold rush?

There's no denying that PPI, otherwise known as Payment Protection Insurance, was very widely mis-sold. Intended as a means of ensuring that you can keep up the repayments on your loan, even if you should lose a major source of income and therefore suffer an unexpected drying up of your cashflow, many lending institutions simply gave out the policies willy-nilly, seeking to line their own pockets by selling it to people who did not need it, didn't want it or even had absolutely no chance of ever making a successful claim on it.

A judicial review into the subject decided that the banks could be held fully responsible for the mis-sold PPI scandal, and were even required to review past policies to ensure that they were not mis-sold. However, the publicity surrounding the issue led to many people making speculative claims, hoping they would be able to make some quick cash. There is no harm in this, however, as the banks will not reimburse you if it transpired that you were not mis-sold PPI - and the scale of the scandal makes it likely that you will have been a victim if you took out any kind of loan.

So, while some individuals may be seen as trying to cash in on the new craze and make a claim to the bank for a refund they don't really deserve, the majority of those who have made complaints over mis-sold PPI have a genuine grievance, having been misled by their bank into paying for an insurance policy that they did not really need, may not have wanted and maybe - just maybe - couldn't even use. Mis-sold PPI is like a lottery of misfortune - and it could be you.

If it was you, we can help you claim back mis-sold PPI.

Claims Financial