PPI is banks' not-so-secret shame

Millions claim compensation for loan insurance

by Russell Shackleford, 23rd August 2011

Millions of customers have been wronged in the Payment Protection Insurance mis-selling debacle, and yet with billions of pounds available to claim in compensation, they now have an opportunity to get their own back on the banks for their widespread and unconscionable actions.

Payment Protection Insurance, more commonly referred to by the innocuous moniker of PPI, is a type of loan insurance which was widely offered to consumers who took out loans from banks or other lending institutions. The intent, so it is claimed, was to ensure that these customers were insured in the case of a loss of income, at which point their policy was intended to kick in and pay out the money they would need to allow them to continue the repayment of their loan.

The issue was that, for many individuals, the PPI on their loan was mis-sold to them, meaning that it was not appropriate for their needs or they were not actually eligible to claim on it. In some shocking instances, consumers found they had not asked for PPI at all and yet it had been added onto their total loan amount by default, often by slick phrasing or small print on the part of the insurance broker involved.

Luckily, these practices have been made retroactively illegal, and it is now the case that anyone who feels they may have been improperly sold PPI loan insurance is able to make a claim for compensation from the bank who sold it to them.

Billions of pounds have been put aside to represent the amount by which customers have been ripped off by the practice of offering mis-sold PPI, which just goes to show how commonplace it became. Fortunately, those customers who did lose money to this unscrupulous practice may now have it returned to them.

If you were affected, claim PPI compensation now.

Claims Financial