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Why PPI Compensation Means Justice for Customers

Payment protection insurance (PPI) was a product that was mis-sold on a scale that many people find hard to imagine. The current compensation bill is standing at £32.9 billion since compensation payments started to be made in January 2011.

Justice

And there could be many, many more claims to come with the announcement of a PPI deadline in late summer 2019.

Claiming compensation is a means of YOU claiming justice. And here's why…

1. Trust

Ordinary people trusted their bank to do the right thing by them. But fuelled by profit and commission, the banks took advantage and mis-sold PPI policies to their customers not just once, but several times over in some cases.

2. A Sub-Standard Policy

PPI was a poor example of an insurance policy too. It was expensive and poor value for money. People were paying hefty monthly premiums for a policy that just about covered the basics, but only if you were in the minority group that was covered by this policy.

If you did try to claim, you were often told you couldn't and if you did pursue a claim, the process took 12 months to complete. By which time you were probably back at work…

3. Seek compensation, seek justice

Some people think that the good news stories belong to everyone else.

There are major success stories, such as the self-employed businesswoman who claimed £84,000 in compensation or a couple receiving £27,000 from a PPI mis-sold to them via their mortgage product. PPI compensation can be a significant windfall but if you don't seek justice for yourself, how will you know?

The average PPI compensation pay-out

The average payment is around £2,750. This was calculated by the number of policies known to have been sold in the UK, to the number of policyholders of PPI in the UK. The value of these PPI policies is then divided by the number of customers gives an average figure.

You may get much more than this, or you may get less.

Putting you back to the financial position you would have been in

Compensation is something that many people seek for all kinds of reasons. The idea behind compensation is that any settlement or payment offered to you should be fair. It should also put you back into the financial position you would have been in had you not been sold PPI.

This means

  • all premiums paid
  • any additional fees or costs that may have been incurred by the addition of PPI to your account
  • also, commission too if this was more than 50% of the cost of the loan and you were not told about it

Do you have a claim?

If you are unsure, there are steps that we can take to help you make a claim. The first step is to find out if you have PPI on any of your products, from credit cards, catalogue accounts, store cards to loans.

We can help! Call us for a no obligation chat about your claim.

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