What is Payment Protection Claim & how you can claim it back

For those who have taken out a loan or credit during the last ten years, then you might also have been mis-sold payment protection insurance (PPI), and you can have your ppi claims in thousands of pounds worth. Payment protection insurance is made to cover the monthly loan or credit card payments when the policy holder cannot work due to a disease or involved in an accident which makes them unable to work, losing employment of redundancies. However, millions of these policies have been mis-sold to individuals and now making ppi claims from their loan providers.

During the last ten years, the banks and lending companies have regularly mis-sold payment protection insurance policy to many borrowers for whom the insurance policy was not suitable. Because of this, a lot of financing companies and banks in the United Kingdom have been fined in millions of pounds. This mis-selling of ppi is becoming the Britain's worst ever personal finance scandal and big banks and lending companies are being involved in the scandal.

The Financial Services Authority (FSA) has said recently that it is expecting 2.75 million complaints and ppi claims to hit the banks in five years. Ppi claims from the clients, as complaints could reach 4 billion pounds. A record of number of clients have already complained to the banks about ppi this past year, with almost 30,000 brand new cases taken to the Financial Ombudsman Service (FOS) between January and June of 2010, three times greater than the combined total number of home loans, investments and pensions.

In case you are not certain if you have mis-sold payment protection insurance, you should assess your loan repayments. When evaluating your mis-sold ppi claims, you will have to write to the lender who sold the ppi policy to obtain information about the policy sold to you. There are tendencies where in banks ignore or turn down your request. However, if you have a strong case, the bank will give you the very least amount as compensation for your mis-sold ppi claims. It is better to be more knowledgeable in calculating the ppi claims that you ought to receive so that when the bank or lender offer you a small amount, it is possible to negotiate with them. There are usually chances that banks will respond to your letter saying ppi claims are currently on hold because of the court case going on regarding ppi complaints. This is what the banks usually do to discourage you in pursuing your case.

It is possible to seek the help of specialist solicitor who can aid you in making your ppi claims possible. They can help you in calculating your ppi claims including the interest and will help you all throughout your claims if you choose to get it to the court.