PPI Refunds are now common practice in the United Kingdom, because many of the banks, insurance companies and credit card companies have decided to stop fighting the claims, and have instead set aside funds to pay out refunds without contesting the cases.

PPI (Payment Protection Insurance) was at one time one of the biggest earners for the financial institutions, because the product had profit margins of over 80%, which is almost unheard of. And many banks sold hundreds of millions of pounds worth of the cover to their customers, oftentimes without their full understanding or consent of exactly what they were signing up for.

It was as a result of this that the Financial Services Authority (FSA) started actively prosecuting companies for mis-selling the cover, and in April 2011 the UK courts finally came down firmly on the side of consumers, after the banks lost their appeal in the High Court.

This has opened the doors to literally billions of pounds worth of potential claims from customers now that a firm legal precedent has been set.

Since that time a large number of companies have sprung up to process PPI Claims, and typically this is carried out on the same €No-Win-No-Fee€ basis that you see popularized in TV adverts for certain legal claims.

The reason why the companies can legitimately do this is because the procedure to claim back money on mis-sold PPI insurance is actually very simple, and in most cases the person could simply do it themselves if they spent a few hours filling in forms.

The way that the process works is that a customer simply sends letters to all of the financial institutions who may have potentially added on PPI cover without their knowledge, such as banks, building societies, credit card companies, loan companies and insurance companies and requests the specific financial details of their policies.

By law this has to break down whether or not there is a PPI component, and that is the figure that is potentially available to be refunded along with interest (normally 8%).

A Financial Company that offers to complete the process and do this discovery work for clients usually do it on the basis that they will receive 15% of the PPI Refund, but that if there is no money refunded that there will be no fee.

The odds are now stacked in the consumers favour with the latest legal wrangles, because figures show that over 200,000 complaints of PPI mis-selling have so far been made to The Financial Ombudsman in the UK, and that of those 75% of the cases found in favour of the consumer.

It has also been estimated that up to 70% of the UK population may have unknowingly been sold PPI at some stage, and that the amount of compensation and refunds, which could eventually be paid out, could top 4.5 billion.

It seems clear that the rise of No Win No Fee PPI Refunds is only going to continue to climb.