Banks such as Lloyds TSB Plc, Barclays PLC, Santander, Halifax, RBS and Natwest have paid out a whopping £500 million since April 2011. When banks lost a crucial Judicial Review, that ruled PPI or Payment Protection Insurance (PPI) was not sold to consumers fairly, and that they could now claim it all back plus 8% compensation.
Payment Protection Insurance (PPI) is designed to cover a persons credit agreement repayments, in the event of Injury, Redundancy or sickness. However, banks often forced PPI on its customers, informing them that PPI was compulsory and that without it no credit agreement would be given.
This is false as no PPI policy has a effect on a credit application and therefore bansk were mis selling PPI on a vast scale to all it’s customers.
Therefore, if you have had a credit agreement ( credit card, loan, mortgage, store card) in the last 10 years, then it is more than likely you will have been either offered PPI or sold it, and could be owed £1000′s in repayments and compensation.
PPI is often around 25% of the total value of the loan amount borrowed, and this will then be added to the interest of the loan, increasing the overall debt by up to as much as 50%.
It is always worth while checking to see if you were sold PPI and if you are owed £1000′s in repayments and compensation.