PPI compensation is a hot topic of discussion with many people looking to reclaim the premiums paid in protecting a credit card or loan against the loss of job or an illness or injury. In most cases people are able to claim back the full amount of PPI premiums made over the life of a credit card account or loan whether the account is still active or has been closed.
The scandal of mis-sold payment protection insurance policies has grown throughout the early 21st century when customers began to realize they were paying for policies they had not signed up for. PPI compensation claims have resulted in banks and banking groups placing millions of pounds in funds designed for covering the PPI compensation claims expected to be paid in the coming years.
Rates for PPI compensation claims have been set by the Financial Ombudsman at the return of the premiums paid by the customer. Initially, a PPI claim calculator is made by a customer making their lender aware that they are making a compensation claim against the policy they feel was mis-sold to them; at this point the financial institution will either make the customer an offer or reject the claim. Customers can then choose to either accept any compensation offer from their lender or if they feel the offer is less than they have paid in premiums they can continue with the claim. The next step is to make the claim through the Financial Ombudsman, an independent body responsible for deciding on claims such as PPI compensation issues.
The rate of compensation is generally set by the Financial Ombudsman; a claimant can choose to either use a PPI claims company to assist them in making the claim or work through the process themselves. Using a PPI claims specialist can ensure the full amount of compensation is claimed back, but fees must be paid to these companies if the claimant receives compensation.