Payment protection insurance (PPI) was sold with credit cards, loans, mortgages, car finance and other types of credit. There have also been some “stand alone” PPI policies which were not linked to types of particular credit. PPI was designed to cover payment for circumstances where you couldn’t make the payments yourself, such as if you couldn’t work due to an accident, illness, or death. For example, if you were unable to work due to an accident and you had PPI, you could make a claim. This means that depending on what your PPI policy covered, the PPI would cover some of your repayments.
Depending on what PPI is sold with, it is sold in different ways. On some loans (including mortgages and credit cards) people paid for PPI on a monthly premium. However, PPI on credit cards was added onto what was owed on the card at the end of the month. The cost of PPI was a percentage (usually 3%-10%) of the total balance owed for that month. This means that the cost would vary each month, depending on how much you had spent.
On other loans, the PPI premium cost was added upfront to the amount borrowed. The customer would then pay it off over the term of the loan, paying interest on the premium - just like on the rest of the loan. This was known as a single premium PPI policy and was actually banned in 2009.
PPI policies have been mis-sold to people who had duplicate cover through other means and therefore, would never be eligible to claim. PPI is also usually added without the customer/borrower having full knowledge that it has been added.
The Guardian (2004) reported that Barclays and other banks had been making a profit from PPI. In 2005 Citizens Advice issued a “super-complaint” to watchdogs about what is described as a “protection racket”, which eventually led to compensation payments to consumers and certain types of PPI being banned. The FCA estimates that 3 million people were affected by the PPI scandal, but by January 2016 12 million customers had received compensation, totaling £24.2 billion.
The majority of our customers weren't aware they were mis-soldcar finance Manchester until our experts checked their finance agreements. You could be owed thousands of pounds in compensation and not even know it. We can check all of your finance agreements in the past 10 years to see if you could make a claim on any of them. Complete our online form or contact us using the details below. Then our expert team will establish whether you have a claim or not. Once we have established whether you have a claim or not, we will submit your application to your lender. We aim to get our clients paid their compensation as soon as possible.
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