Other types of insurance may also have been widely mis-sold
by Stephen Hunt, 26th May 2011
Banks may be continuing to sell insurance products that are of
no use to their customers, despite the prospect of paying out
billions of pounds in compensation after the PPI mis-selling
scandal.
Consumer groups are warning that another such scandal could be
on the horizon if the banks do not quickly buck up their ideas.
Complaints made to the Financial Ombudsman relating to mis-sold
insurance policies rose sharply in the last year, with most
pertaining to caveats in the policies which prevent people from
actually claiming.
A comparison has been drawn between these complaints and the
veritable tsunami of dissatisfaction over the way PPI was mis-sold
in such a widespread manner.
Millions of customers will be eligible to claim compensation
after most of the leading banks and financial service providers
mis-sold PPI to customers who either were not aware of it or could
not use it. PPI is not necessarily a rotten apple of a product per
se - it exists to help people keep up with their repayments should
they encounter financial difficulty of any kind - but many people
ended up paying for PPI when they weren't eligible to claim on
it.
The mis-selling of PPI is something which has been going on for
many years, but the Financial Services Authority are finally
putting their foot down, and ruled last month that banks and
lenders guilty of mis-selling must refund their customers in
full.
Due to this ruling the banks have been forced to set aside huge
sums of money to ensure that they can withstand the barrage of
claims which will be coming their way.
If you think you may have been mis-sold PPI by any lender, find
out how we can help you reclaim PPI with as little effort as
possible.
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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