Banks yet to pay out to many customers
by Russell Shackleford, 10th October 2011
PPI, or Payment Protection Insurance, is no longer being
mis-sold by banks and other financial institutions, but the
repercussions are still making themselves felt, with billions of
pounds being paid out by high street banks to customers who were
ripped off, and yet millions of consumers still left
uncompensated.
The cause of mis-sold PPI was financial institutions seeking to
line their own pockets by offering loan insurance, also known as
PPI, to all comers, whether they needed it or not and regardless of
the suitability of the policy. Many used underhanded tactics such
as telling customers that PPI would increase their chances of being
approved for a loan or misleading them about its uses.
Some unfortunate customers, in fact, saw the most scandalous
behaviour of the mis-sold PPI fiasco, in which they simply had the
cost of the PPI added to the sum of their loan without being
informed that it was there at all, or that it was optional. This
was sometimes achieved by advertised a "fully protected loan",
without explaining that the protection was completely optional and
may not have been of use to anyone.
It was due to this that the mis-sold PPI scandal arose, with
billions of pounds essentially stolen from customers in exchange
for little or no service. Eventually this came to the attention of
financial regulatory bodies, and after several years of wrangling
which ended in a mighty showdown in the form of a judicial review,
where the banks lost and were placed in the unenviable yet deserved
position of having to pay back the billions of pounds which they
had managed to fleece their customers out of.
Nowadays, many people are making claims for mis-sold PPI, hoping
that they will be able to claim back any money that their lost to
the phoney loan insurance.
Testimonial
"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"
Mr R Evans 11 Nov 2010