How to Claim Back PPI Insurance

Article Written By: katrinawagner

If you want to learn how to claim back PPI insurance then you are far from alone. Over the last decade many people in the UK have been paying out for payment protection insurance to their lenders when in actuality this has not been necessary.

The basic concept behind PPI plans is to protect and cover payments on debts should you have a problem with depositing the agreed sums on time, for example if you become injured and unable to work or if you are laid off. Sadly only as few as eighteen per cent of all PPI claims have been successful, primarily because of the massive number of loopholes and special clauses that work in the lenders favour.

This shocking figure has meant that British banks have increased their profits by more than five billion pounds by persuading their customers to sign up for PPI schemes when they were not actually necessary or suitable.

But there is good news. You can now claim back your PPI insurance. Many banks are now facing a massive number of claims for selling payment protection to their customers when they shouldn't have.

Most policy owners simply were unaware that they do not nor should not sign up for a PPI plan. For example the schemes have been pushed heavily on to people over the age of sixty five who in actuality would never require such a plan as they have no income from employment that can be lost or stopped.

Also payment protection insurance has been sold to civil servants and teachers who already have polices that would cover their loan repayments should they fall sick and are unable to work.

In some cases people have taken on board PPI without even being aware that it is not compulsory. If you have been tricked into payment plan insurance on a credit card or loan when it was not an option you would normally have considered then your bank may be legally obliged to refund the overall cost and also make interest payments to you on the cash you have paid in.

If you are curious as to how this situation has arisen then the answer may not come as much of a surprise. Many banks were paid by the main insurance companies to promote PPI polices and their staff would have received bonuses and commissions on each customer that signed up. As this was not an honest way of conducting business, the FSA has fined financial houses heavily.

If you want to initiate proceeding to claim back your PPI then the first step would be to write to your bank requesting a refund. If they refuse, which they may do, then you need to again contact them but this time threaten to contact the Financial Ombudsman Service.

Though it can take a while to be successful, at the end of the day there is the potential to have thousands of pounds returned to you. To make the task easier you should contact an agency or company that specialises in helping people get back the funds invested in PPI plans.

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