Payment Protection Insurance (PPI) has been mis-sold for a lot of reasons. This may be from consumers unknowingly charged by staff of some providers during the course of sale or not informing them that the policy was optional.

The exposition of the said fiasco has angered most of the consumers and made them feel that their banks took advantage on them to gain more profits to finance their bankers’ extravagant bonuses. Eventually, the scandal brought the Financial Services Authority (FSA) to implement a ruling in January that will strip the affected banks a great amount that could go up to 4.5 million to pay back those who have been affected by the mis-sold.

Those FSA guidelines, which came into force last December, called for banks to contact those customers who had potentially been mis-sold PPI and, if they had, to pay out appropriate compensation. That resulted in the launch by the industry – represented by the British Bankers Association (BBA) – of an ultimately unsuccessful High Court judicial review that aimed to alter the rules, which applied even in cases where no complaint had been made.

In that hearing, Lord Pannick QC, for the BBA, had told Mr Justice Ouseley that it would cost the banks an estimated 3.2bn to implement the proposals. That was on the basis that there would be a 20% take-up by those contacted who had purchased PPI policies since 2005. In addition, it has been estimated by the FSA that PPI providers may have to pay out as much as 1.3bn in compensation in response to new complaints received over the next five years.

Moreover, the BBA representative also imposed that there were an error in the implementation of the guidelines as it will constitute a big burden on the firms which is against the set conduct of business rules. Nevertheless, the High Court gave a verdict in favour of the consumers thus ordering the banks to pay the policy holders compensation totalling to a billion of pounds.

Prompting with the decision of the High Court, Barclays has already withdraw its participation to appeal and announced that it will allot 1bn to settle the PPI complainants. Likewise, the new executive of Lloyd, Antonio Horta-Osorio, also took the similar option and withdrew quietly reserving 3.2bn in funds to compensate customers.

Another bank to confirm that it would not appeal the High Court verdict was Royal Bank of Scotland (RBS), which said in May that it would set aside some 850m to compensate customers that were mis-sold PPI. In doing so, the bank stated that it had an existing provision of 100m, and had already paid out around 100m in PPI compensation. The Co-op Bank, meanwhile, said that it had put aside 90 million for the purposes of PPI compensation.

Some analysts have predicted, however, that the PPI scandal could cost the industry rather more than the FSA’s initial estimate of 4.2bn, with 8bn or even in excess of 10bn being feared by some banking insiders.

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Payment Protection Insurance, typically known as PPI, has been a really controversial topic for a number of years now. The mis selling of PPI by numerous finance institutions, as well as the majority of the major banks and building organisations in the UK, has resulted in one of the greatest financial selling scandals for several years. Maybe you have listened to on the news or read in the papers about the recent High Court Judicial Review with regards to mis sold PPI, where the banks were trying to get out of using the guidelines stated by the Financial Services Authority (‘the FSA’) that had ordered the responsible financial institutions to pro-actively check their specific customer records and call every customers who may have been mis sold PPI, regardless of whether that customer had not as yet documented a PPI claim.

They of course lost the challenge, and the fact that they had the gall to make such a challenge has thrown a further dark cloud over the ethics of the UK financial services industry. They were simply trying to draw out their responsibility to correct the damage they have clearly caused by the mis sale of PPI over many years and to millions of customers. The bill that the banks are likely to have to meet is expected to total many billions of pounds. So what exactly is PPI and how is mis sold PPI classified? And more to the point, how do you make mis sold PPI claims if you think you suspect this has happened to you?

Payment Protection Insurance (PPI) was supposedly made to protect those who had obtained loans (or any kind of credit) and were not able to continue to make the payments due to accident, injury, ailment or involuntary lack of employment. Over the face of it, PPI appears like a very sensible insurance to be offered to credit consumers. Nevertheless it has been scandalously mis sold by almost all key lending institutions for several years contributing to this tremendous scandal which the banks now have to deal with to pay off the damage generated to their numerous innocent victims.

There are numerous ways in which PPI was deemed to have been mis sold. Many lenders gave the impression that it was compulsory, part of the loan, and did not really give the customer the opportunity to decide whether they wanted it or not. In other cases, a PPI policy may have been sold which does not cover the full term of the loan, rendering it potentially useless to the customer. Other customers may have simply had PPI added to their loan without even being aware of it, so they did not even know at the time of taking out the loan that PPI was included at all.

Many thousands of people have been affected by this awful financial selling scandal, but if you think you or anyone close to you might have been affected and been a prey of this mis selling at any point then you should take action now to enable you to claim the compensation you are entitled to. If you have obtained a loan or credit of any type over the last decade it’s worth reviewing through your documents. You may not know you had PPI – and if you did not then you definitely hold the basis of a claim simply for that reason.

There are several alternatives you might have if you think you could have the premise of a legitimate PPI claim. Nevertheless, the most important thing you must do is ‘take action’, and do it right quickly. There will only be a specific window of time offered to get PPI claims, and you’ll be expected to place your claim forward within this time frame.

You could try and handle the claim yourself, and there are set letters and advice you can find online to do just this. But, after everything they have done, can you trust the banks (or ‘lender’) to tell you the truth? If they come back to you and deny that you have a valid claim, do you trust that this is 100% true? What if they accept they did mis sell PPI and make you an offer of compensation. How do you know the offer is the maximum amount you have the right to claim? What if the case is referred to the financial Ombudsman, would you know how to deal with the matter in this instance?

The bottom line is that while you could process your own personal PPI claim, you’re taking a risk. The sensible option is positioning the matter to experts. There are several skilled PPI Claims companies working across the UK who concentrates on dealing with banks (and other ‘lenders’) and handling PPI claims on a daily basis. They are fully aware if your claim is valid and in addition they understand how to compel the banks into paying the optimum amount of PPI claim compensation due to you. These people can take care of the entire job for you, putting you informed, and several of them will not charge you a cent unless they effectively gain a compensation payment for you. They work on a no win, no fee basis.

Therefore dig out your paperwork, and make certain you check if you’ve been mis sold PPI so that you can receive a slice of the compensation that’s payable to you throughout this window of opportunity to claim.

Go Claim PPI have a 100% success rate at helping people to gain compensation for valid PPI Claims in the UK.