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Consumers compensated after PPI scandal

Banks forced to pay out on insurance scam

by Russell Shackleford, 22nd July 2011

The aftermath of the PPI scandal has led to millions of customers being compensated for the money which they lost due to the banks widely mis-selling Payment Protection Insurance.

The fact is that billions of pounds have been set aside in order to compensate wronged consumers for the wilful loan insurance mis-selling by the banks, in one of the greatest financial scandals of recent years. A great many borrowers were burdened with expensive insurance policies which, it later transpired, were useless to many of them.

Some people were told that they would need to take out a PPI policy if they were to get a loan, while others were not informed that they were paying for the insurance at all. This led to millions of people paying out for policies which were not suited to them - a great money-spinner for the banks, but certainly not good value for consumers, who found themselves at a loss.

Many customers did indeed find that, when trying to make a claim on this loan insurance which the salesman had pushed on them so readily, they actually were never covered by the PPI policy in the first place due to exemptions in the small print, making it completely worthless to them and something which they should not have been sold at all.

As this great rip-off became more and more apparent, many people complained to the financial institution who mis-sold their PPI, only to be fobbed off with jargon, excuses, or even a complete ignoring of the problems which led them to complain.

Fortunately, legal proceedings soon began, and while it was the British Bankers' Association which initialised them, it ended with their defeat, and with the Financial Services Authority triumphant, hence signalling an equally victorious result for consumers, who were now entitled to claim back any money they lost to the menace of mis-sold PPI.

If you suffered from mis-sold PPI, we can help you make a PPI claim.

Claims Financial

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
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