New regulations could spell an end to loan insurance fraud
by Russell Shackleford, 11th August 2011
Mis-sold PPI may have met its maker, with tight new regulations
on the loan insurance spelling an end to the ability of greedy
bankers and insurance brokers to mislead the public over the truth
behind this much-maligned insurance coverage.
Millions of people recently discovered that they had been
lumbered with these unpleasant loan insurance policies,
figuratively paying through the nose for what was literally an
albatross around their necks. It is due to this that the Financial
Services Authority made new rules regarding PPI in order to limit
its mis-selling, placing strict regulations on the banks and other
insurance brokers to ensure that they were unable to continue this
wretched endeavour.
Another aspect of the rulings on mis-sold PPI, particularly
after the judicial review which went against the banks' interests,
is that a total of billions of pounds has been set aside to ensure
that customers who were wronged by their lenders are able to claim
the appropriate amount in compensation.
The sum claimable by individuals who were mis-sold PPI is
equivalent to the amount they outlaid for their insurance premiums,
as well as a sum of additional compensation to represent the amount
of money they were likely to have made had they invested that
capital elsewhere. Additionally, those who attempted to make a PPI
claim and failed as a result of the policy being mis-sold may even
be able to take their case to court in order to claim the sum that
the insurance would have paid out had they been successful in their
claim.
Hopefully these regulations will effectively act to limit the
mis-selling of PPI, rather than allowing the banks to simply find
another loophole via which they can exploit loan insurance to line
their own pockets. One thing is for certain, though, the financial
watchdogs are on the side of the consumers - and you could be owed
thousands.
If you'd like to make a mis-sold PPI claim, we can help you reclaim PPI today.
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