PPI is an ongoing financial scandal in the United Kingdom. It’s related to the fraudulent sale of insurance, targeting new homebuyers and other borrowers. Fortunately, justice is being served in hundreds of cases, despite the might of the banking institutions implicated (Lloyds and Barclays, among others). The deadline to become part of a class action lawsuit is fast approaching, so it’s important for you to understand the issue if you want to find out if you are due restitution.
What is PPI and Who Are PPI Claims Experts?
There are a group of solicitors who have jumped into the breach caused by this scandal. Through a series of successful legal actions taken against banks and insurers, these lawyers have become PPI Claims Experts who provide help. To understand their actions, you’ve got to understand what PPI really is.
PPI stands for Payment Protection Insurance. Its purpose is self-evident – it’s a way for people who take out loans to insure their future ability to pay back the loan.
For example, someone who takes out a 30 year mortgage loan might have no problem making her monthly payments for the first nine years of the mortgage. She’s got a great job and few expenses. Then one day she is in a car accident and breaks her back. Because of the pain and time spent recuperating, she’s not able to keep her job. When she has somewhat recovered six months down the line, she still lacks the strength necessary to get another job in her field, and ends up going 14 months unemployed.
During this trying time, payment protection insurance would have come in real handy. If our hero had been insured at the time of her injury, her payments would have been covered. You can see that PPI is not a bad form of insurance in itself. The problem is in the way it was sold to consumers.
If you’ve ever taken out a large loan of any variety, you know just how much paperwork there is involved. A mortgage loan can have hundreds of pages, depending on the complexity of the transaction, and pretty much nobody reads every word of the contract.
Knowing this, insurers and banks colluded to sell lots of insurance by hiding sign-up agreements in the mountains of paperwork that borrowers have to sign when taking out a loan. Hundreds of borrowers did just that, only learning of their mistake after noticing mysterious payments being automatically drafted from their bank accounts every month.
If you discover that the same has happened to you, don’t despair. A quick call to the company linked above will give you direction in getting your money back, and any additional damages associated with your particular case. It’s important to be ever vigilant against scams such as these, even when dealing with reputable institutions like large banks. If you happen to make a mistake, as so many did in the case of PPI, it’s good to know that there are people out there who will help fix your problem.