Recently the UK banking system instituted an insurance plan that would pay the loan payments of customers who became disabled, died, lost their job, or suffered any calamity that would prevent them from paying their payment on their loan. The plan was called the Payment Protection Plan, or ppi.
On the surface this sounds like a good idea, but the plan was grossly misrepresented and sold to just anybody, whether they had a loan or not. There was a lot of pressure to sell the plan, and it didn’t seem to matter who bought it, whether they knew what they were purchasing or not.
Then when the economic troubles began, people began losing their jobs and there was some difficulty meeting all the claims, so the banks decided to simply refund all of the premiums that had been paid.
That created a new problem of identifying who to pay and getting the money back to the people. To date the UK banks have repaid roughly 12 billion pounds, and they have set aside another 20 to 22 billion for future PPI claims.
Even though the repayment plan has been highly publicized, there are many people who are just ignoring it, or are unaware that they have anything coming to them.
There have even been third party companies who have taken the initiative to get the refunds for people, but they charge a 25% fee to get the money. That has rubbed some people the wrong way, but it has served to kick the PPI claims refund program into a higher gear.
Some people just don’t seem to care, and others have been made aware of the program because of the third party efforts. The people can also contact a bank and go in to fill out an application for their PPI claims refund, or they can go online.