Until recently it was very common for banks to include a payment protection policy as a standard feature in all of their loans and credit cards unbeknownst to the policy holders. As a result many people in the UK are eligible to file a PPI claim to recover a significant amount of money that these banks unwittingly saved up on their behalf, plus interest. These insurance policies were very often included in the fine print of various loans and other debts or forced upon the individuals taking on the debt as a mandatory program, which has resulted in a significant amount of bad press and investigations from both the Financial Services Authority and the Office of Fair Trading ending in significant fines for many different banks.
So what does this mean for the average person? Since many of the PPI policies were sold to individuals without their knowledge or consent a significant number of people are eligible to file a PPI claim and get their premiums back from the banks that charged them, offering an unexpected financial windfall for people in need. To speak concretely, over 20 million policies have been sold across the UK, 90% of which were improperly sold, and over 2 million of those people were able to file a successful claim to receive an average of £2,500 back from the banks. This means that there is a very good chance that you, too, have been quietly sold a payment protection plan that you might be able to reclaim.
Unfortunately claiming those benefits or getting a refund on your premiums is not always the easiest task. The banks have developed many ways to delay or deny claims filed against them, and it takes a combination of knowledge and tenaciousness to succeed at this game. Fortunately the bad publicity from these unscrupulous practices has resulted in the development of many organizations to assist people in claiming their benefits or reclaiming their premiums. If you suspect that you might have a PPI of your own it would be worth looking into them and learning as much as you can about what they do. Chances are, you might need to use a service like this some day.