Banks pay out to wronged consumers
by Bradley Askew, 7th June 2011
PPI, or Payment Protection Insurance, has been mis-sold to
millions of consumers, but now that the banks have been left
responsible for redressing consumers, they will finally get the
compensation they deserve.
PPI was mis-sold to many borrowers alongside loans they took
out, including such financial products as mortgages and credit
cards. While PPI is, in principle, a sound purchase - an insurance
policy which ensures you are able to keep up the repayments on your
loan should you suffer an unexpected drop in income - many people
found themselves unable to claim on their policies when they came
to need them, due to having had them mis-sold by the lender.
This is because PPI was a huge profit generator for the banks,
which encouraged them to push the loan insurance on people who
could have never claimed on it, in addition to those who did not
need it or in some cases were not even aware that they would be
paying for it or what it did. The FSA eventually dealt with this by
issuing retroactively applied new rules on PPI, meaning that the
banks would have to evaluate any cases of mis-selling which
occurred.
The banks were not pleased with this and took the FSA to court
over the issue, but ultimately the consumer was the winner as the
court ruled against high-street banks, obliging them to set aside
billions of pounds to serve as PPI compensation for those who had
been wronged by having inappropriate Payment Protection Insurance
policies sold to them.
Looking to reclaim PPI? We can help you get PPI
compensation.
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