Banks' compensation funds reach into the billions
by Russell Shackleford, 24th June 2011
Millions of wronged borrowers are set to reclaim a total of
billions of pounds in compensation from banks over the mis-selling
of PPI, or Payment Protection Insurance, alongside loans of all
kinds.
Customers who took out mortgages, credit cards or any other type
of loan product within the past few years have discovered that, in
many cases, they were made to pay for expensive and unnecessary
loan insurance policies for which they had no use. Some people even
found that they were paying for policies they did not ask for, with
the premiums simply having been added to the amount they had to
pay.
Fortunately, a judicial review of PPI mis-selling found that the
banks bore responsibility for compensating customers for this
flagrant financial scandal, legally obliging them to set aside
billions of pounds in potential payouts to people who have suffered
as a result of PPI policies they did not want.
PPI is not in itself an inherently bad financial product - some
people find it advantageous to have this form of loan insurance.
Essentially it offers security by ensuring that even if you should
lose a major source of income, the repayments on your loan can
still be covered by the money paid out from the insurance. However,
only people in certain circumstances are eligible for policies, and
one of the major issues regarding PPI selling is that many of those
who were paying for it would not have been able to ever claim on
their insurance.
Flaws in a PPI policy can arise for a wide variety of reasons,
some of the most common ones involving the type of employment that
the borrower is involved in, health issues they may have, and
whether or not the policy was clearly explained to them beforehand.
Mis-sold PPI is a complex issue, and one which the banks are now
being forced to face up to.
If you're looking to make a case for mis-sold PPI, we can help
you claim
back PPI today.
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"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