Lenders paying the price for their deception
by Annabel Hunt, 4th July 2011
The banks are to suffer a loss of billions of pounds after the
true extent of the PPI mis-selling scandal was recently
revealed.
Over the past few months it has come to light that millions of
bank customers were encouraged to take out expensive loan insurance
policies, also known as PPI (Payment Protection Insurance), when
borrowing money. The brokers who sold them this insurance told many
consumers that this would help to ensure that they would not
default on the loan should they suffer an unexpected loss of
income, but, as it has turned out, nothing could be further from
the truth.
The scandal arose when the majority of those individuals who
attempted to claim on their PPI policies found that they were not
eligible for a payout, and never would have been, due to their
circumstances when they took out the loan. It was discovered that
PPI mis-selling was so rife within the financial services sector
that many people were told to take out pricey insurance which was
in fact completely useless to them.
After people began to claim compensation for mis-sold PPI, it
was discovered by many other borrowers that they had had PPI added
to their loan without even being told about it, often through the
use of misleading terms such as "fully protected loan" wherein it
was not explained that the protection was an insurance policy which
was entirely optional. This only added fuel to the fire, with so
many consumers having been paying through the nose for mis-sold PPI
policies they were not even aware that they had.
Fortunately, a recent judicial review forced the banks into the
position of paying out compensation to all those they have wronged,
and it now seems likely that the majority of customers who were
mis-sold PPI will receive a portion of the billions of pounds the
banks have been obligated to put aside.
If you believe you have been mis-sold PPI, we can lead you to the
compensation that is rightfully yours.
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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