The History of PPI

Payment protection insurance or PPI as it is better known continues to be in the spotlight, and for all the wrong reasons. This insurance policy was sold to millions of people, who had very little understanding of what they were paying. The concept was for the insurance to cover death, accidents, sickness and unemployment; however, people were mis sold the policy.

This style of insurance has been available for many years, and millions of people had been paying it every month, without question. The idea was to safeguard the lender and the consumer if anything went wrong, and the payments could not be met.

The concept of the insurance policy was brilliant; however, it came to light in 1998 that far too many people were being mis sold policies. This is when the consumer finance claims begun, and the true extent of the banks lies and deceit was unveiled.

Which? Magazine uncovered the sheer scale of the problem with PPI, and how so many people were affected. The story continued from 1998 to 2005 as more leading newspapers published the details of the huge amounts that banks had taken from consumers. Not only did it come to light that many people did not understand the PPI, but also how so many people had tried to claim and failed.

After significant press coverage and many bad reports the Fiancial Services Authority decided to start regulating the use of PPI. Throughout 2005 thousands of people contacted the Citizens Advice Bureau to ask how to reclaim PPI. It seemed that many people had been mis sold these policies, and they wanted financial compensation.

By the end of 2005, all banks and financial institutions had been told of the issues with PPI, and there was going to be a huge number of claims. The reports and bad press gained momentum, and slowly all of the facts came to light. There were very few banks that came out of the situation undamaged and consumers were left feeling cheated.

People were encouraged to make a claim against the financial institution that had mis sold the PPI, and many people were successful. You can make the claim independently; however, there are dedicated companies that will ensure you receive what you are entitled to be paid. These dedicated PPI specialists will ensure that your case is dealt with promptly.

During 2010,the banks fought back and refused to deal with claims that they were receiving. All complaints from consumers were ignored, and the battle went to the high court. Thankfully the decision was made that the banks would have to face up to their responsibilities, and pay what was owed.

Regardless of the amount that you have paid out in PPI you will be entitled to claim some back and this can be done through a dedicated claims company. They will ensure that every aspect is dealt with from the claim to the court case if necessary. You will soon discover that you are not alone and that there are a huge number of people that are waiting for their entitled compensation.

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