Southport, UK May 25th 2011 – Payment Protection Insurance, or PPI, was devised as a means to protect consumers should they become unemployed or fall ill and become unable to make mortgage and other loan repayments. The insurance itself had a useful place in the financial market, except that it has recently been unearthed that lenders and brokers have been guilty of mis-selling their PPI policies.
As such, many consumers and activists had lobbied the BBA and the result was a legal battle between the two parties. The High Court found that lenders should repay PPI claims to their customers in order to redress the situation. However, banks used various legal tactics in order to delay having to make the repayments.
Having been given until the 10th May 2011 to appeal the High Court decision, the BBA has decided not to submit an appeal. This means that where consumers had previously been told their claims were to be put on hold until further notice, it is now more likely that these claims will be progressed.
According to leading PPI Claims Consultants Gladstone Brookes review shows the filed claims on behalf of 24,000 clients in 2010 alone, this has been at least partially responsible for another increase in the number of PPI claims being filed.
The BBA has estimated that the reclaims could total as much as £9bn with customers of virtually all major banks having potential to reclaim their PPI policies. The Financial Ombudsman estimates that the average successful case nets repayments worth around £2,750 per claim although mortgage claims will typically be on the higher end of the scale.
In 2010 lone, Gladstone Brookes reviews show it was contracted to work on behalf of 24,000 clients to reclaim their PPI. A 92% success rate saw their clients reclaiming a total of £45m and they continue to fight cases on a daily basis. If you believe you have been mis-sold a PPI policy then visit www.gladstonebrookes.com for more information on how to claim.
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