The £40 Billion PPI Scam

• Credit Charges
• Miss-Sold Mortgages
• PPI

We have recently carried out research showing that up to £40 Billion could be claimed back by UK consumers who have taken out PPI policies

Click here to claim back your PPI

Have you ever been told, recommended or thought that it would be wise to take out Payment Protection Insurance (also know as PPI)?

 

Well if you have taken out a PPI policy, it is highly likely that any insurance premium paid will be recoverable. We are a specialist Claims Management Company actively helping thousands of individuals in their efforts to recover PPI premiums paid for what has often proven to be a worthless insurance product.

Background to the PPI charge rip off

It has been widely reported that many of the large financial institutions have been investigated by their regulators regarding the sale of these policies and have received large fines for the misuse of their position. The most common form of misuse appears to stem from misleading sales scripts, where sales advisors were told to insist that Payment Protection Insurance formed a mandatory part of a loan, adding the insurance without the customer’s knowledge or where individuals simply did not need to take the cover as it was wholly inappropriate for their needs.

What’s more, the insurance was extremely expensive and Challengeyour.com has seen many instances where the price paid for the insurance was wholly disproportionate to the benefits the customer could ever receive. We are aware of a number of cases being tested through the Courts to ascertain whether the mal-practice mentioned will have wider implications and render the whole loan “Irredeemably Unenforceable” under the terms of the Consumer Credit Act 1974.

The figures

Note the following figures mentioned are only an estimate, and it could be four or five times this sum as the calculations take no account of any loans or credit cards which have been paid off in recent years

Active policies in the UK:	20,000,000
Challengeyour.com’s success ratio for claims of this nature	36%
Number of Claimable policies	7,200,000
Average Refund Achieved by Challengeyour.com	£1,533.00
Amount Recoverable	£11,037,600,000

What kind of PPI policies can be claimed?

Challengeyour.com has advised that any form of finance (loan – secured or unsecured, car finance, mortgage or credit card) which had payment protection insurance attached, may qualify for recovery on the basis that the lender or advisor did not comply with their Rules when the insurance/finance was sold.

Once it is established that the Rules were broken, individuals are entitled to recover all the premiums paid plus Statutory Interest at 8% per annum, and in many cases further compensation for having been misled.

PPI Reclaiming Example

Challengeyour.com acts for a Mr & Mrs Watson.

In July 2006, Mr & Mrs Watson decided to take out a secured loan in the sum of £86,000. At the time of taking out the loan Mr Watson was a member of the Armed Forces and had been so for the past 19 years. He enjoyed all the benefits of a Civil Servant which includes extensive cover against accidents, sickness and redundancy. Indeed, as a member of the armed forces, it is very difficult to lose your job and therefore Payment Protection Insurance may well be completely irrelevant for someone employed in the forces, or for that matter – any civil servant (NHS, Prison Service, Police, Fire Brigade, Local Government and many more…).

However during the sales process that Mr & Mrs Watson undertook to qualify for the loan – he felt pressured to take the insurance – as he was told that he may not qualify for the loan if he didn’t. In the end he reluctantly agreed to take the insurance and was stung with an additional £21,457.00 for the pleasure being the total cost of the insurance premiums which was included in the loan. So instead of borrowing £86,000 he walked out of the sales process with borrowings of £107,457.00.

A number of years later he left the forces (his contract came to an end) and during a period of unemployment he tried to make a claim only to be told that he did not qualify for cover because he did not lose his job!

Where were they misled?

In simple terms, Mr & Mrs Watson were misled in the following areas:-

The insurance policy was not relevant for them as they already had existing cover through Mr Watson’s employer.

The price paid for the policy was disproportionate to the benefit the policy would have ever provided in the event of a claim.

Why are institutions keen to sell these policies?

This is very simply the huge commissions. Brokers receive up to 50% of the premium as a commission, not bad if you are the broker, considering what Mr & Mrs Watson was charged above.

What can be done?

By making a claim through Challengeyour.com you simply have nothing to lose. They have extensive knowledge to focus in on the issues relevant for your particular circumstance and work for free.

They only charge you once a successful result has been achieved and you have been reimbursed the cost of the premiums wrongfully charged to you. The fee they levy is a percentage of anything they recover so Challengeyour.com is incentivised to recover the most for their client.

All you need to do is make a claim….