The fact is, many people aren't even aware they can claim money back and as a result, financial institutions are getting away with it, inflating their already enormous profits
London, UK (PRWEB) August 3, 2009
The shocking extent to which consumers have been ripped off by a widely-practiced Payment Protection Insurance (PPI) scam is revealed today by top claims management company, Challengeyour.com.
The London-based firm says that at least eleven billion pounds, possibly closer to 30 or 40 billion pounds, is owed to millions of consumers who've taken out payment protection insurance policies to cover their loans, credit cards or mortgages.
"The fact is, many people aren't even aware they can claim money back and as a result, financial institutions are getting away with it, inflating their already enormous profits," says Challengeyour.com's Director Adam Thomsett.
Challengeyour.com is today launching a new national campaign to help re-unite customers with money they should probably never have been talked into paying in the first place, for payment protection which in many cases, is likely to be almost worthless.
The company will investigate individual claims and only charge customers 25% plus Vat when the loan firm pays out, avoiding the need for costly up-front legal expenses. Current statistics show that one in three PPI policies have been mis-sold and Challengeyour.com believes that this figure will increase providing individuals make a claim.
The above figure stated has derived as follows:
Number of active policies in the UK: 20,000,000*
Challengeyour.com's success ratio for claims of this natur: 36%
Number of claimable policies: 7,200,000
Average Refund Achieved by Challengeyour.com: £1,533.00
Amount Recoverable: £11,037,600,000
*Figure obtained from Citizen Advice Bureau (http://www.citizensadvice.org.uk/index/campaigns/social_policy/evidence_reports/er_consumerandebt/protection_racket.htm
Note: to calculate how much can be reclaimed, consumers can use this ppi calculator.
If rules were broken, consumers are entitled to recover all paid/unpaid premiums plus interest at 8% per annum, plus possible compensation on top.
11 billion pounds could be the tip of the iceberg: if PPI on loans or credit cards which have been paid off in recent years is also included, then it's possible the figure could be as high as 30 or 40 billion pounds.
Regulators have already fined a number of financial institutions for amongst other things, telling customers that Payment Protection Insurance was compulsory or selling it to the customer without telling them.
The Payment Protection Insurance market is hugely profitable, worth an estimated £5bn per year*(Source CAB as above).
Brokers who sell PPI stand to make huge profits from commissions, in some cases up to 50% of the premium paid by the consumer.
Average refund achieved by Challengeyour.com £1,533.00.
Mr Wilkinson of Nottingham recovered £15,100.00
Mr Bland of Gosforth recovered £7,200.00
Mr Ramsay of Hackforth recovered £7,300.00
Challengeyour.com is based in Central London and deal with PPI claims from all over the UK. Claims can be made directly through the website or by calling: 0800 814 0898
Director Adam Thomsett is available for TV, Radio and Newspaper interviews.
Call: 0207 563 4508
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