Officially, according to the Financial Services Authority (FSA), only 10.8 million UK citizens have yet to make a claim for mis sold PPI. The situation is slowly coming to a close. The FSA’s establishment of the new claims guidelines in 2011 has allowed UK citizens to receive £1.9 billion in compensation for mis sold PPI. Today, the bank’s compensation package has reached £5 billion.
Experts estimate that in 2013, the entire PPI fiasco has been resolved given the faster and simpler PPI claims process. The FSA has called for banks to call upon customers who are potentially mis sold PPI. The consumer group Which? has also entered an agreement between banks and PPI providers to allow customers to make a claim directly to them, avoiding the lengthy lines in the Financial Ombudsman. The faster process increases the rate of resolving claims faster by 10% according to experts.
PPI or payment protection insurance is a useful insurance policy in itself. Many complain about PPI because of the manner it was mis sold. PPI provides 12 months of loan, mortgage or credit card repayments for customers who become ill, have an accident or get unemployed. These situations can last for weeks or months. Many customers mistook PPI as mortgage payment insurance (MPI) or income protection insurance (IPI) given the way their bank representatives explained the benefits of the insurance policy.
Today’s PPI claims methods and the compensation package ensure that the 10.8 million remaining claimants can make a claim without any hassle. However, experts at www.ppiclaimsco.org have warned that banks might not consider all legal and technical factors into consideration. You might still get a refund that is equivalent of a lump-sum repayment. It is highly advised that you seek consultation with claims handling companies before you proceed making a PPI claim on your own.