Experts have estimated that millions of people in the UK were potentially mis-sold payment protection insurance policies. While originally designed to help people make payments on their loans and credit cards in the event of an economic hardship, the practice soon devolved into signing up every customer for the insurance, whether it would help them or not. A number of banks and lenders across the nation have been implicated in the scheme to inflate the numbers of customers paying for payment protection insurance by mis-selling the policies.
Most of these people were signed up for a payment protection insurance policy when they opened the credit card account or signed the loan agreement with the lender. However, they may not have been adequately informed about what they were being signed up for and what the insurance policy would cover. Today, the Financial Conduct Authority in the UK works to educate consumers about payment protection insurance and the legal framework that made the refunds possible for so many around the country. In March 2014, £349.8m was paid to customers who filed claims over the way they were sold payment protection insurance, raising the amount paid out since January 2011 to £14.7bn.
In some cases, the customers were actually told that they had no choice but to sign up for the insurance policy or that they stood a better chance of being approved for a loan if they had the insurance. People that were self-employed or had certain pre-existing medical conditions were not even eligible for the insurance, yet were sold policies anyway. Many people were astonished to find that the policies did not pay out as expected when they needed the help. These insurance policies were also sold under the names payment cover insurance, protection plan insurance, personal loan protection insurance, loan care insurance, and Accident, Sickness Unemployment (ASU) insurance policies.
People that believe that they have been mis-sold a payment protection insurance policy may now file a claim for compensation for the retrieval of the premium payments made for these policies. However, proving your claim can be difficult if you are not familiar with the way that the court system works to process these claims. In these cases, the customer can turn to a professional Claims company like Oracle Legal for answers to their questions and help navigating the system. The average timeframe for the entire process of filing a claim and reaching a conclusion is between 8-12 weeks.