Reclaim mis-sold PPI policies call

Last Modified: 25 Oct 2007
Source: PA News

Millions of people could be eligible to reclaim money over mis-sold payment insurance, it has been claimed.

Martin Lewis, founder of MoneySavingExpert.com, said half of all Payment Protection Insurance (PPI) policies in existence could have been pushed on consumers who do not need it.

As such, he urged people to join a "consumer revolution" and attempt to reclaim cash paid out on PPI for loans, mortgages, credit cards and store cards.

A guide on how to reclaim has now been posted on the MoneySavingExpert.com website.

Mr Lewis said he believed the resulting campaign could be bigger than the bank charge revolt which has seen tens of thousands of current account customers reclaim money from their banks.

PPI - which provides financial cover for people who find themselves unable to work through injury or ill health - is often sold on the back of loans, credit cards and mortgages. There are an estimated 20 million policies active in the UK.

But critics claim PPI is vastly overpriced, often sold to people who do not need it and difficult to claim on.

Mr Lewis said: "It really is a scandal. Some have this insurance without realising it or were told it was compulsory when it wasn't, others are paying for it when it doesn't actually cover them.

"Many don't realise they are paying thousands for it and almost everyone is paying many times more than necessary for it."

He added: "Now, as the regulators are starting to get tough, the time is ripe to do more. It is time for the millions who are unaware of how poor their cover really is to see if they were mis-sold and demand their money back."

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