PPI means Payment protection insurance is sold by the banks alongside loans, credit cards, mortgages and other financial products in order to give borrowers the peace of mind that the loan or card will be paid in the event of an accident, illness or redundancy. However, it has been uncovered that many banks may have missold PPI insurance to unsuspecting customers as part of a sales drive due to the enormous profits that could be made out of this type of insurance.
Mis Sold Ppiis the biggest financial scandal to hit the lending industry in living memory. There have been, and will be billions paid out in compensation for blatant overcharging on bank accounts. The compensation for the mis-selling of PPI will make this seem like pocket change.
I have faced an uphill struggle against my bank,, but was given hope when the banks decided to pay up. As a young person, I took out a loan from bank to help me continue my studies. I, after 5 years was also sold PPI alongside the loan, adding an extra payable amount to the total repayments.
'I was told taking out the insurance would increase my chances of getting the loan, he says. I was also advised to borrow more money than I needed, because it was a lower repayment interest rate. At so young age, I didnt know any better.'
But the cover proved worthless. i, lives in southeast London, and works as a Software Engineer, says: 'I lost my job during a probationary period but my claim on the insurance was refused because they said it was not a proper redundancy. I got behind on the loan payments and have been trying to catch up ever since.'
I submitted a claim to Bank last year that has been in limbo pending the outcome of the court case. I says: Im hoping things will start moving along now. I have hired Refund Claims Ltd - The Mis-sold PPI Specialists to present my case. Which really helped me a lot and without its help it was impossible.
It is thought that the mis-selling of PPI may have affected up to 2.75 million individuals and more recently the banks have been ordered to review all their PPI sales over the last five years, whether or not there has been a complaint made. This means that over 20 million PPI policies sold in the UK will have to be checked against various ways of mis-selling.
However, the tide has turned and the industry is having to clean up its act. For the consumers who feel that they have been ripped off once too often by the financial services industry, this is something of a PPI bonanza average claims are reaching up to 2,500. But where should you look for help if you think you might have been a victim of this huge act of misrepresentation.
PPI insurance has been widely mis-sold and you may not even know you have it. We think that's unfair and now we can do something to stop it with the help of a good consultant company..
