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Claims for PPI

What attracted the attention of consumer advocate groups and government alike in the early days of investigating the abuses on selling payment protection insurance (PPI) was the fact that loan repayments were so much higher than they should have been. A number of people complained to the Citizens Advice Bureau (CAB) that they had taken out loans estimating a certain repayment amount and when they received their loan schedule the payments were often as high as 50 to 60% above what they had estimated. A trickle of complaints made way to a tidal wave as claims for PPI abuse began pouring in.

Early Days of CAB Investigation

The CAB 2005 investigation uncovered scandalous facts about just how widespread the PPI abuse really was. It had infiltrated nearly every corner of the PPI market and people were beginning their efforts to claim back PPI, often to no avail. CAB got involved and began lobbying for immediate changes to the laws governing the sales and administration of the PPI industry. CAB got involved and began lobbying for immediate changes to the laws governing the sales and administration of the PPI industry. They cited dozens of real-life studies to substantiate their claims for PPI abuse and at some point government took notice and indeed took matters in hand. However, the problem was far from resolved and to this day there is a plethora of controversy surrounding payment protection insurance in both the areas of sales and claims resolutions.

Examples of PPI Abuse Cited by CAB

In their document entitled, "Protection Racket", CAB noted that the rates being charged for PPI cover were astronomical and further proof that claims for PPI abuse were vindicated. In a table listed in the study, they found that UK consumers were paying the following rates for insurance with little cover:

  • Unsecured personal loan 25%
  • Unsecured personal loan 47%
  • Hire purchase for car 43%
  • Hire purchase for car 34%
  • Unsecured loan 13%

Whilst the unsecured loan at the bottom of their chart was not out of the realm of reason, take a look at their claims for PPI overcharge on the top four case studies. The loan amount in the top example was originally £8,933 but with a 25% premium of £2,217 added to that, the borrower had to make payments on a loan that totaled £11,500. As well, consider the high end of the above spectrum. An unsecured personal loan for £11,000 with a 47% premium of £5,133 became a loan for £16,133. That was enough to raise more than a few eyebrows.

As claims for PPI refunds accelerated and lenders were refusing to review those claims, government stepped in to legislate how claiming back bank charges were to be handled. There is a definite procedure in place at this point in time with standard forms to be submitted, yet many consumers find the claims process beyond what they can handle in terms of time and effort. Belmont Thornton, Belmont Thornton Limited, has a team of professional claims specialists on hand who are assisting UK consumers file claims for PPI refunds by the thousands. Registered with the Ministry of Justice, the Information Commissioner's Office and licensed to do business in the UK with the Office of Fair Trading, Belmont Thornton can provide the assistance you need on a no win no fee contingency. Call today on 0207 471 2000 to speak with a claims specialist - free of charge!

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