Payment Protection Insurance FAQs

What Is PPI?

PPI, or payment protection insurance, is an insurance policy that covers borrowers over the duration of their repayment period, and insures against an inability to meet repayments, usually on grounds of accident, illness and/or unemployment. In the event that the borrower is unable to repay for any of the insured reasons, the insurer will pick up the balance on their repayments to prevent default.

What’s The Problem?

With PPI, there is no problem as such, and it remains a valuable product for some borrowers. The difficulties for most consumers lie in the way in which PPI was sold to them in the first instance – widespread mis-selling of PPI occurred throughout the financial services industry, with many consumers being unaware or patchy about the facts of what they were purchasing and what eventualities it would cover. With extensive financial incentives for sales staff, it is thought that the true extent of the PPI mis-selling saga spans hundreds of thousands of consumers.

Who Is Responsible?

Responsibility is not restricted to one or two lenders, or even one or two different types of lenders – in fact, mis-sales of PPI cover have been so rife as to cover the majority of those that have taken out a loan in recent years, according to some statistics. From mortgages to personal loans to credit cards, from banks to building societies to finance companies, the industry as a whole has been guilty of indulging in these unfair selling practices.

Can I Get Compensation?

Whether or not you are entitled to compensation depends on a few key factors: primarily, whether or not you have been sold PPI with a loan product, and whether you were victim to the common mis-selling practices they deployed. Even if you meet these criteria, there is still no guarantee that you will be entitled to compensation. If you’d like to discuss your claim in more depth, we may be able to offer more clarity, and help take your action for compensation to the lender as your claims management agent.

Will I Be Successful?

There is no guarantee you will be successful in claiming PPI compensation. Each individual case is different, and whether or not you have been mis-sold is a technical matter, distinct from whether or not you feel aggrieved. Broadly speaking, successful claimants must all have been sold PPI unknowingly, unnecessarily or unfairly by the lender.

How Long Does Claiming Take?

The claims process can be resolved in a couple of short weeks, or it can take months. As each individual case varies and each lender varies in the way they handle their claims, the process can be lengthy and frustrating. However, that’s not to say a quick resolution isn’t possible – it all depends on the facts of your case and whether your circumstances show a more obvious example of mis-selling with a more accommodating lender.

How Much Compensation Can I Expect?

Again, compensation amounts vary depending on how much you have paid in to your PPI policy. Some of our past clients have received as much as £5,000 in compensation, so it is certainly worth investigating whether or not you have been mis-sold PPI cover with any loans, mortgages or credit cards you’ve recently taken out.

Do I Have To Use A Claims Management Company?

There is no requirement for consumers to use a claims management agency in navigating the PPI compensation process, and consumers are free to pursue their lenders in respect of any compensation they feel due as a result of PPI mis-selling. Claims managements agencies like UK PPI Claims are used for their expertise in the claims process, and their experience of helping other consumers win just compensation from their lenders, and their use is entirely optional.

At UK PPI Claims, we go one step further to guarantee our customers no up-front fees or payments. If we win, we take a flat percentage in commission, meaning we only get paid if you get paid.

Let UK PPI Claims fight your corner. Get in touch today for more information on starting your claim.