Banks pay out to customers with useless insurance policies
by Russell Shackleford, 13th July 2011
The PPI mis-selling scandal continues to cost banks billions of
pounds, as consumers line up to receive payouts.
PPI, or Payment Protection Insurance, served as a huge profit
generator for the banks, with millions of customers being sold
policies alongside loans of all shapes and sizes. Unfortunately,
the scheme backfired when it was found that many people were paying
sky-high premiums for loan insurance which was not suited to their
circumstances and, in many cases, could never actually have paid
out.
This financial scandal led to a record number of complaints from
bank customers, the introduction of new regulations from the
Financial Services Authority, and finally a lengthy court battle
involving the British Bankers' Association - who lost their case.
Thankfully, this means that the banks and other financial
institutions who mis-sold PPI to unwary customers will now be
forced to pay out in full, offering compensation to those they have
wronged.
In recent months, since the court loss, many of the high-street
banks have set aside billions of pounds in potential compensation
based on estimates of how much money they managed to unfairly
acquire through mis-sold PPI policies, and millions of wronged
borrowers are anticipated to have a claim for a piece of this
recompense pie.
In recent weeks, Barclays have even announced that they will be
offering no-questions-asked compensation payouts to customers who
submitted a mis-sold PPI complaint before the 20th of
April - meaning that they will not even assess the cases, merely
seek to redress anyone who felt they may have been sold PPI
wrongly.
It could take months for the mis-sold PPI scandal to finally
grind to a halt, but it is nonetheless fortunate that it should end
with the banks forced to pay out compensation for those customers
they wronged through exorbitant fees charged for useless and
unnecessary policies.
If you've been mis-sold PPI, we can help you make a PPI reclaim
today.
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Mr R Evans 11 Nov 2010