Banks pay out to wronged customers
by Russell Shackleford, 21st July 2011
The PPI mis-selling scandal has finally reached an end, with
millions of consumers set to receive a portion of the compensation
funds established by various banks, which reaches into billions of
pounds.
PPI, or Payment Protection Insurance, was frequently sold by
banks and other lending institutions alongside various forms of
loan, including things like mortgages and credit cards.
Unfortunately, many of the customers who were encouraged to take
out a PPI policy found they had been mis-sold it, which in a number
of cases meant that they were unable to make a claim for the
insurance under any circumstances.
Others had a PPI policy added to the cost of their loan without
even being told, or were misinformed that it was necessary to have
a PPI policy if they wanted to take out the loan. Banks also used
sneaky tactics like offering a "fully protected loan" without
explaining that the protection would have a price tag attached, and
that it was entirely option as to whether you wanted it or not.
PPI is supposed to be a form of insurance which will protect you
if any unforeseen circumstances should lead to a drop in your
personal finances, rendering you unable to continued paying off
your loan. In these situations, the PPI policy is supposed to kick
in and provide a payout allowing you to continue your repayments.
Unfortunately, mis-sold PPI means that the customer in question is
unlikely to ever be able to successfully claim on the policy, no
matter what kind of situation they may find themselves in, and
hence they are essentially being forced to pay high fees for what
is a completely useless form of coverage.
Fortunately, recent legal action has meant that the banks are no
longer allowed to mis-sell PPI and must compensate customers who
were affected.
If you were affected by any of the issues raised in this news
story, we can help you make a PPI claim.
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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