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Over recent years, in the United Kingdom, The Financial Services Authority (FSA) has been reviewing unjust practices of issuance of Payment Protection Insurance (PPI), and the methods of which it was sold to loan borrowers. Many significant United Kingdom banks have been making a lot of money off mis sold payment protection insurance.

PPI was initially created to aid the loan borrower in the event they were injured at work, or became ill. This specific insurance would make repayments to the creditors until they resumed work. At least half of borrowers deny coverage, however, of the other half a good portion were not asked, they were just sold the policy and pay the premiums without even knowing.

Eventually, there were numerous grievances about the industry. Out of all the people that purchased PPI either knowingly or unbeknownst to them, around 5% actually ever filed a claim. Even worse, the stats show, that about 70-75% of the people that did file PPI claims would not meet the terms established in the policy.

When the FSA got involved, thorough investigation found that a lot of times the lenders did not tell the borrowers all of the details needed, such as criteria for a claim. Additionally, it found that a great number of these lenders would use scare tactics to influence the borrower into agreeing. A number of lenders actually even included overpriced PPI to the initial loan quotes without disclosing exactly what it was. Investigation also discovered that numerous lenders would add a lump payment to the beginning of the loan repayment program. By doing this, the borrower would have no means of canceling the payment protection insurance.

There are several basic questions to ask if you feel you might be able to make a claim for your monthly premiums. Some include the items we stated above, such as being told you had to purchase the policy to obtain a loan, or if you were not told in any way, yet were billed for the PPI; if you were not told of the terms before purchasing or had you been sold PPI and were self-employed.

If any of this pertains to you, you are like a lot of people whom were mis sold payment protection insurance and in a position to now file PPI claims to try and reclaim the moneys they paid for premiums. It is important to find a company that knows what they are doing when it comes to reclaiming premiums. Don’t fall for any promises, they can’t guarantee they will get compensation; many legit companies will not likely charge any fees up front. Use due diligence when finding the best specialist within the field.

For information on ppi claims, or reclaim premiums for mis sold payment protection insurance by visiting Simplicity Claims.