Many people assume that making a PPI claim will make them better off. This is very often the case, but it is worth considering the costs as it can be possible to have to borrow money to make a claim, if you use an expensive lawyer and then have problems in paying that money back.
Many people assume that a compensation claim is risk free, but it is not. You will have to take out some insurance to pay the lawyer in no win, no fee cases or you will have to find money to pay them whether the case is won or lost. Normally when the case is own, there is enough money paid out in compensation to cover the lawyers costs. However, if the case is not won, then their fees still have to be found. If you have insurance, that will pay out, but otherwise you will have to find the cost. You can discuss costs with layers before you take them on and so it is important to understand exactly how much you will be expected to pay out to them. They will be upfront and honest, so will not mind discussing this and they will not give you any nasty surprise bills at the end.
PPI is often seen as a way to get out of financial troubles, if you manage to win the case, then it should be. You will be able to use the money that you get paid back, to help you with some of your debts. However, if you do not win the case, you may have to pay some costs and this will mean that you get in to even more trouble. Even if you think that you have a good case, you will have to prove that you were missold PPI. You will need to put together a good and believable case and so there is some risk involved. Lenders are not paying back PPI to everyone, only those that can prove that it was missold.
So before you go ahead with a PPI claim, you need to think carefully. Consider the costs of making a claim, especially if you decide to use a lawyer. Think about whether you have a string case and what evidence you have. Also research whether that particular institution pays out readily or not, if you can. There is a lot to think about as you do not want to end up worse off than you were before you made the claim.