Payment Protection Insurance (PPI) is a product that is meant to cover loan payments in the event that you wouldn’t be able to pay them (due to accident, illness or losing your job). However, PPI been mis-sold by dozens of banks, credit card and loans companies due to massive incentives offered to the staff selling it to customers in the mid nineties to early noughties (in particular customers being told they had to take out PPI in order to secure their loan or credit card).
If you were one of the many people who were mis-sold PPI, then you have a right to claim back the money that was wrongly taken from you – which in some cases could be thousands of pounds.
There are two ways you can reclaim PPI. One way is to do it yourself. There is plenty of information on the internet which tells you how to do this,and many people have reported success using these methods. In fact, I’d advise that anyone try this method first. You have nothing to lose by trying, and you could end up with a very handsome payout. However, if you find that you have trouble with this method, then consider using a PPI claims company.
A PPI claims company will do all of the legwork for you (writing letters to banks and following up), however, they will charge a fee which could be up to 30% of whatever you eventually claim back. The advantage of using a PPI claims company is that they will do all the chasing, particularly as it’s in their interests to make yours a successful claim. In particular, if you’ve a case of a mis-sold PPI claim which is pre-2005, which may need to go through court, a PPI claims company can be very helpful (as they’ll do this for you.)
However, if you are tempted to use a PPI claims company, try and find a company with a good reputation. Some PPI claims companies charge an upfront fee or will claim a fee even if you were in debt with a bank or load company which means you’ll get no cash (but a reduction in debt) but the company will still want their cut.