Lloyds bank mis-sold PPI to millions of customers over a period of several years until he judicial review in to the farce in November 2010.
After the review financial bodies punished Lloyds with fines thanks to their part in the process, they were also told to start refunding customers who were mis-sold the policy in the first place.
Customers are now eligible to reclaim compensation from Lloyds if they were mis-sold the policy, which on average is around £3000 per customer.
In the last several years over £5bn has been compensated by Lloyds to customers who have complained.
Making a claim is fairly simple, you can do it yourself or use a claims company to act on your behalf, typically though they will charge you 25% on a no win no fee basis.
On average it takes 6-8 weeks to find out if you’re owed compensation, if so there’s another 4 weeks or so for the bank to send you the compensation, often in the form of a cheque.
Be careful though, as if you have a current debt with Lloyds, they will take the compensation from that, perhaps leaving you with a much smaller cheque and a smaller debt.
Just make sure you don’t end up needing to pay a claims company 25% of the compensation that has been deducted from your debts.