Payment Protection Insurance

Do you think that you may have been mis-sold PPI insurance? Up to 50% of people in the UK were mis-sold!

Are you considering making a claim for compensation?

Payment Protection Insurance – The Facts

Payment Protection Insurance (PPI) is often sold in conjunction with loans (credit agreements) to cover repayments should the client become unemployed, or be on sick leave due to illness or disability. Approximately 7 million PPI policies are sold each year. It is estimated that there are 40 million policies currently in force.

In our experience the vast majority of these policies have been mis-sold. If this has happened to you, we can reclaim all premiums paid to date, together with interest, we can also arrange for the outstanding PPI on the loan/agreeement to be cancelled. The PPI element of a loan can be up to 50% of the amount borrowed! Many people were never informed that PPI cover was included in their loan and are paying a far greater monthly amount than they need to.

Research conducted by the Office of Fair Trading (OFT) and the Citizens Advice Bureau (CAB) has shown that:

• Borrowers are often sold inappropriate polices
• The majority of consumers who make claims against such policies have their claims rejected due to exclusion clauses and administrative barriers
• High pressure selling is widespread
• It is often implied that the taking out of the PPI policy is a condition for the acceptance of a loan or being offered a discounted interest rate on the loan.

PPI policies are immensely profitable for those who sell them. Its estimated that the banks make £5 million in profit per year selling PPI policies. In the main, this is due to very low percentage of successful claims. Of the premiums paid by consumers, only 20% are subsequently paid out as claims (an 80% profit margin), compared to 90% of car insurance premiums being paid out in car insurance claims (a 10% profit margin).

Until recently, a major lender would not offer loans or credit cards unless PPI cover was taken out with them.