Complaints about mis-sold PPI pouring in

Banks see rise in customer disgruntlement statistics

by Russell Shackleford, 4th October 2011

The banks have been receiving record numbers of complaints regarding mis-sold Payment Protection Insurance, or PPI, after this scandal was revealed to the world at large.

Millions of people are estimated to have been misled by their financial institution of choice with regard to the usefulness of such loan insurance products within recent years, with the result that many customers have found themselves ending up in a situation wherein they are expected to pay through the nose in order to support insurance coverage which they may not have wanted and, in the worst case scenarios, may not be able to use or even be aware that they are paying for.

Recent court action involving the FSA has meant that these unscrupulous lenders are now being required to offer compensation to their maltreated clients, leading to billions of pounds being set aside as this is the sum which has been estimated to be owed to the victims of the mis-sold PPI scandal.

Complaints have unsurprisingly come pouring in, with many banks finding the number of disgruntled customers contacting them to have smashed all previous records, and with the vast majority of those having chosen to contact the bank wishing to register a complaint regarding mis-sold PPI.

Mis-selling of PPI can arise in a wide variety of ways, most of which involve the insurance broker misleading their customer about some aspect of the loan coverage. This may involve telling them that they are required to take out the insurance, not explaining that they may not want it or may already be covered by another policy, or even lying about the circumstances under which they are able to claim.

As a result, many have ended up in situations where they have been paying through the nose for a reprehensibly misrepresented loan insurance policy.