The payment protection insurance scandal has spread far and wide with a huge number of people being affected by the bank’s mis selling the policies and you can see how far by taking a look at the hard facts and numbers behind it all. Over 20 million different payment protection insurance policies were sold before the scandal was discovered and a great deal of these are expected to have been mis sold in one way or another. As there were so many different ways in which the policies were mis sold and the banks failed on their duty of care it is likely that if a customer was sold a policy it was mis sold in one way or another, even if it was on a minor basis.
Payment protection insurance was an especially expensive form of insurance which although was created to help people in financial difficulties if they lost their job and had a loan to pay tended to cost more than any potential benefit they would have received if they needed their policy to cover their monthly loan repayments. In addition to this the criteria to get the policy to pay out was incredibly strict.
PPI claims then need to be made for those who were affected by the mis selling, assisting them in getting their money back which was spent on the policies. The average claim amount is approximately £3000 with the total cost of the payment protection insurance policy expected to go over £10 billion requiring the banks to increase the amount of money which they have set aside to cover the refunds and the compensation as well as the administrative costs which are incurred from processing the thousands of PPI claims being made every month with 37,000 complaints regarding payment protection insurance being made to the Financial Services Ombudsman in a six month period, this is not including the number of complaints which are made directly to the banks!
In order to help handle the huge number of payment protection insurance complaints and claims that are being made there is now a selection of claims services which, with their expert knowledge and years of experience from working with so many different claims circumstances. One such firm is PPI Claims Management.
When it comes to the timeframe of making a successful payment protection insurance generally it takes around 6-8 weeks to hear from the banks after making your initial claim and it will soon be over at this point. If your claim is rejected or requires an appeal or further information then you may find the whole process taking significantly longer. If the bank fails to respond in an adequate time frame you can contact the Office of the Financial Ombudsman and make a further complaint about the bank and their failure to handle their claim in an effective manner.
Payment protection insurance claims must be made within two different time limits, you need to start making your claim within six years of the actual policy being sold however as this cut off so many people who were mis sold payment protection insurance policies without realising it more than 6 years ago there is a second time limit you can use. The second time limit allows you to make your PPI claim within three years of the date you became aware that you were mis sold the policy. As a result your payment protection insurance policy could have been sold to you 10 years or even more away and you could still make a claim to get the money you paid back. Regardless of the fact you have three years from the point of being aware of the mis sold policy you should look at making your claim as soon as possible to prevent any further issues due to the age of the policy.
Upon your claim being successful you will be given a pay out and this is made up of three different parts, if you want to estimate how much you are going to get you need to know what these parts are. The biggest part is the actual refund and this is the total cost of the policy premium that you were made to pay and anywhere from 10 to 35% of the value of the loan/finance that you had applied for so all refunds are unique to the individual that is applying. On top of this if you were one of the many that paid for their policy on a monthly basis with their loan payments you will have been charged interest and this will also be refunded to you. Finally, the third part of the refund is compensation which has been set at 8% of the value of the PPI policy. This comes as standard on all of the payment protection insurance policy pay outs.