Payment protection insurance, otherwise known as mercilessly PPI was sold alongside various loans and mortgages for over fifteen years. In many cases, lenders and made sales nearly always more from the sale of payment protection insurance compared by real loan.
To show the length of PPI mis-selling is to note that in 2002 Barclays bank sold about 360 million consumers PPI alongside loans. It was believed that their profit was incredibly over 280 million! But not just to be the culprit. All the major (and minor) lenders have mis-sold PPI customers to produce huge profits.
Therefore, an increasing number of complaints, the Government has acted, and in May 2009 these policies were banned. Massive and constant pressure from consumer groups, TV and Internet campaigns then forced the FSA is the Government to ban this mis-selling practice to those who did not want nor need such policies.
Fortunately this now means that anyone with a PPI policy is now entitled to recover their money in full with interest (at 8% per annum) and added compensation. Following the legal process against PPI more lawyers can recover the full cost of PPI were mis-sold more interest and Commission expenses against the creditor. Currently it is estimated that approximately 20 million PPI policies are in existence, but given the fact that prizes can be claimed over 6 years, this means potentially around another 80 million policies are affected.
Average compensation of mis-sold PPI is about 2,500 so if over the past five years has had one or more PPI policy then clearly is well worth it in claiming compensation for the PPI. Some people have even argued over 25,000!