Millions of customers eligible for PPI reclaim

Loan insurance controversy shakes banks

by Russell Shackleford, 10th August 2011

PPI has been so widely mis-sold by high-street banks in the UK that many have expressed their disgust over the issue, but now customers are beginning to get their own back and claim the compensation they so richly deserve.

PPI, or Payment Protection Insurance, is the biggest scandal in which the financial industry has been involved since the last big con. Millions of consumers were affected and the trigger for this virulent form of money-draining was nothing more than daring to take out a loan from one of the big financial institutions.

The truth is that many bank customers were offered, alongside their loans, an innocuous-looking product known as PPI, a form of loan insurance coverage which, so they were told, would be able to protect them in case they should suffer an unforeseen loss of income and become unexpectedly incapable of being able to afford the repayments on the loan.

The idea was that the PPI would pay out at this point, thus offering them the opportunity to continue paying back the money they had borrowed - but alas, as many were to find, it was in many cases nothing of the sort.

The truth is that the wretched nature of Payment Protection Insurance led to it having a vast number of exceptions and exemptions from being able to claim. This, coupled with the unbridled greed of those in the banking industry, led to a great many people being sold it when they could have never made any use of it whatsoever.

This disgrace recently came to light, and the FSA ruled on the mis-sold PPI controversy that the banks would have to offer compensation to their customers. After a court battle, they were obliged to by law - and now millions of customers are eligible to claim back billions in compensation.

If you have been mis-sold this insurance, you could make a PPI claim today.

Claims Financial