According to a recent study, the influx of Payment Protection Insurance (PPI) claims made by UK consumers is helping to keep our economy afloat.
According to the study by ING Bank, PPI compensation payments are playing a crucial role in keeping the nation’s personal savings balances from dwindling and propping up people’s personal finances.
Since 2001there have been around 34 million PPI policies sold in the UK and the average amount of PPI reclaimed stands at about £2,600 per customer. Add to this the fact that major lenders have set aside approximately £14bn to cover mis-sold PPI claims and it’s easy to see how the economy is being bolstered by PPI compensation payouts.
It’s only natural to feel aggrieved if you don’t have this kind of money coming to you through claiming compensation (especially against the current economic backdrop), however, it is important to remember that the money received by those who make a PPI claim represents the monthly payments on PPI policies that should never have been made in the first place.
PPI was originally sold alongside various credit agreements and was added to almost half of personal loans and one fifth of credit-cards. PPI policies were supposed to cover monthly repayments should the policy holder become unable to make their contractual payments i.e. due to illness, injury or redundancy, however, many people that were sold PPI would never have been able to make a claim due to the many exclusions and exemptions.
Banks have struggled to manage the backlog of claims which has developed over the past couple of years, due to the huge number of PPI claims made. Lloyds Banking Group was the first bank to incur a fine over their handling of PPI claims, specifically for the delays to making payments for successful PPI compensation claims. This fine was incurred shortly before the bank released their complaints figures for 2012 which showed a total of 1.4 million complaints against the firm with regards to PPI claims – an increase of almost 300% from 2011.
There are currently no time constraints to reclaim mis-sold PPI, although banking bosses have suggested to their regulator (the Financial Services Authority) that a deadline should be introduced for fresh PPI claims.
If you have taken any form of credit over the last ten years or you believe you could have been mis-sold a PPI policy, it is advised that you should start your claim as soon as possible. You can start a PPI claim yourself by contacting your bank or lender directly. Alternatively you could choose to use a professional Claims Management Company (CMC) who will act on your behalf and negotiate with the relevant lenders and organisations to secure a PPI compensation claim for you. http://www.rymclaims.co.uk