Payment Protection Insurance (PPI) has been very popular in the last two years in the UK as the courts ruled in favor and against the banks in a recent judicial review. This meant that banks and other creditors would have to pay out on insurance policies that they had mis sold to their clients over a number of years. Clients would have to prove in their claims why they had been mis sold their insurance so that banks and other creditors could pay out on the PPI policies.
Even though banks have considered writing to clients and other customers in the UK millions are still to claim on their PPI policies in the UK. Which means that banks and other creditors will face an even bigger claims bill in the UK than they first expected which was to be around £5 billion, this claims bill was met within 12 months of the judicial review.
The current ppi claims bill currently stands at around £12.5 billion and the bill is set to reach a whopping £50 billion within the next two years.
Banks recently informed media that they were going to try and impose that the there is a time limit on people being allowed to claim back their insurance policy however many other banks opposed this as they want to get this scam out the way completely and draw a line under it.
The banks will not have to deal with the PPI claims head on so that people can start to claim back their mis sold insurance policies. Lloyds TSB were recently fined just over £1.5 Million for stalling on paying out on claims that clients and claims management companies had already claimed back on. This goes to show that banks are not wanting to help their clients claim back any mis sold payment protection insurance (PPI) they just want to stall to put off the client or claims management company from making a full claim on their behalf. However, banks tried to discredit claims management companies but this was only due to the fact that they know that it is in the best interest in the claims management companies to make sure that the client claims back all their money, it is their job to do so and this is because claims management companies handle the claims on a professional levels, to ensure that the client gets the maximum amount of compensation that they are due and are worth as they are the ones that have been mis sold their policies and ripped off for thousand of pounds.