Payment Protection Insurance (PPI) is usually sold with a loan which may include personal loans, credit cards and mortgages. PPI is intended to pay the periodical instalment payments, as and when they are due in the event that the policy holder is unable to pay the loan as a result of illness or unemployment however the problem with Payment Protection Insurance is that it rarely pays out and the insurers reject over 7 out of 10 claims whilst making on average a hefty 70% profit margin by effectively increasing the cost of the loan to the consumer by about 10%. Many of these policies represent very poor value for money and have been mis-sold by an unscrupulous lender ensuring that upon legal action by PPI solicitors the policy holder is entitled to a full refund of all payments made to the insurers which as often as not is a bank or credit card company.
There are many ways in which Payment Protection Insurance can be mis-sold resulting in PPI solicitors taking legal action for compensation. :-
if the PPI premium was added in and paid upfront
if you were told you had to take out PPI with the loan
failing to advise payments are made for a bare minimum sum
failing to advice payments may be made for a limited period only
if the gross repayment figure included PPI without your knowledge
if the policy was tagged on to a loan and repaid without your knowledge
if you had to opt out rather than opt in using a tick box the loan proposal
if the terms were not explained in full taking into account your personal circumstances
if the policy was sold to someone who could not make a valid claim such as a self-employed person or a short term contractor
UK PPI solicitors deal with PPI compensation claims. They do not usually charge unless you win your case and compensation is received. PPI solicitors do not ask you to fund or finance the PPI compensation claim as it proceeds. If the fraudsters are hiding behind the protection of a limited company, a PPI solicitor can still obtain a compensation order making them personally liable. If you would like free legal advice without further obligation just contact a specialist litigation solicitor who will discuss your potential compensation claim and advise you of the best way to protect your legal rights. If after talking to a PPI solicitor, you decide to go no further they will not usually bill you for the initial advice which is given without further obligation.
Most financial claim solicitors operate the no win no fee scheme more formally known as a Conditional Fee Agreement (CFA) which means that the lawyer is only allowed to charge legal fees if the claim is won and compensation is paid to the client. If the case is lost, no legal fees are payable and the solicitor simply writes of the account for time and expenses. The legal fees will be subject to a pre-arranged amount or percentage which will be outlined in advance in the signed CFA.