what is ppi claim all about The number of PPI claim text submitted to the Ombudsman reached an all-time high in recent months, with 11,000 complaints submitted each week between October and December 2012, and no sign that this number will be falling any time soon. It is thought that the rise in claims has been due to the publicity PPI has been given and the number of companies currently offering to forward PPI claims on your behalf.
Payment protection insurance was sold to protect your payments should you have lost your job or fallen ill, at least in theory. The fact of the matter is that very few were aware that they had it and it would have done very little if anything to help them if they had needed it. Thanks to this nearly two thirds of claims submitted are won, meaning around 7,333 claims have been won every week in the last few months, each paying around 3000 on average. As you can figure out this means bank paid out a little more than £22 million in PPI payments each week between October and December. Last year banks paid an average of £530 million every month in PPI compensation and UK banks recently announced that they had put aside £13 billion to pay the claims and as there is no sign of the number of claims slowing this might not be enough, with the cost of compensating people expected to cost banks around £7bn this coming year. With people continuing to claim PPI banks are calling for a time limit to be set that would prevent claims from being won unless their claim concerns PPI sold within more recent years. However the FSA regulator has no agreed to imposing a deadline there is speculation that this could change. As a result banks have of course changed their practices to stop any mis-sale of PPI, something that should protect them from further claims. Of course there are many among the British public who are hoping for a speedy end to the era of PPI claim text – those who are spammed with false messages about compensation entitled to you. There is evidence to show over 800,000 text messages are sent every day with messages such as “you could be entitled to £4,856 in PPI compensation – reply for more info.” In many cases these are just spam, in some cases these are scams that will look to steal your information and sell it. If your phone number or email address is on the internet there is a good chance it has already been sold to someone who is harassing you with such messages, this is why it is important to find the company yourself if you wish to apply for PPI compensation. If you haven’t looked at claiming PPI compensation it is highly recommended that you do so although most claims pay out at around £3,000 there are some claims for businesses in particular that can pay out much higher. One businesswoman from Hertfordshire received a payment of £65,000 for her mis-sold PPI – certainly an amount worth having and until she received the result she had no idea it would be an amount anywhere near as high as that. It is currently though that 85% of claims will receive compensation eventually, though only two thirds gain instant PPI compensation the first time their claim is processed.