Banks set aside billions for compensation claims
by Luke Whitmore, 2nd June 2011
Millions of borrowers have been mis-sold PPI, or Payment
Protection Insurance, by unscrupulous banks seeking to line their
own pockets - and are now looking to claim compensation.
The issue became such a sore spot for the banks that they took
the Financial Services Authority (FSA) to court over new
regulations which saw them required to take full responsibility for
the PPI mis-selling scandal, placing lending institutions in the
position of having to put aside billions of pounds in potential
recompense for wronged bank customers.
However, the court's decision went against them and they were
therefore obliged to abide by the FSA's new rules, meaning that
thousands of borrowers are now able to reclaim any PPI premiums
they may have been paying despite not wanting, needing or being
able to use the policy, in addition to compensation on top of this
sum.
PPI is a loan insurance product intended to ensure that, after
taking out a loan, any disruption to your income does not damage
your ability to keep up repayments.
For example, if you should lose your job or suffer serious
injury, the PPI policy is supposed to pay out with an amount which
makes it possible for you to continue paying back your loan.
Unfortunately, for literally millions of people, a PPI policy
was sold to them which they could never claim on. Others were
encouraged to take out PPI when they would not have otherwise
purchased it due to misleading claims and pressure selling from
insurance brokers, and some victims of mis-selling even had the
cost of a PPI policy added to the price of their loan without being
told that it was there.
One of the biggest financial scandals in recent history, the PPI
mis-selling saga has now begun to draw to a close - with millions
of disgruntled customers sent to reclaim billions of pounds in
compensation from unscrupulous banks.
If you have been a victim of this widespread mis-selling, then
why not claim
back PPI today?
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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