Banks mis-sold PPI to millions of borrowers

Mis-selling of loan insurance systemic and widespread

by Luke Whitmore, 6th June 2011

Millions of people have been mis-sold PPI in what has been described as a "scandal".

PPI, or Payment Protection Insurance, has been sold improperly to so many people that the banks went to court to try and avoid paying out compensation over it - and after their loss, have gone on to set aside billions of pounds to cover the sum they are expecting to have to pay out.

This vast amount of cash intended solely to redress their customers should go some way towards demonstrating just how widely and systemically PPI was mis-sold.

If you have ever taken out a loan, including a mortgage or credit card, you may have been a victim of PPI mis-selling. PPI is a type of insurance which is often offered alongside loans, and is supposed to cover your repayments in the eventuality that you should suffer an unexpected loss of income and suddenly find yourself short of money.

The idea is that the PPI policy will then pay out and you will be able to use this money to keep up the repayments on your loan. Unfortunately, many people who had a policy found that this was not the case - for a large number of them, the PPI they were given was unsuitable for their circumstances, meaning that they would never be able to make a successful claim. Others did not want or need the PPI but had it forced onto them or were misinformed about its attributes.

Essentially, if a customer was misled over what PPI does and if it is compulsory at any point of the selling process, or if it later transpired that the policy they were sold did not suit their situation at the time the loan was taken out, then they are owed compensation - and could claim thousands of pounds back.

If you feel you have been mis-sold this insurance, we can help you claim PPI compensation.

Claims Financial