The PPI Mis Selling Scandal Continues
It has been reported that there may be over one million mis sold PPI cases (Payment Protection Insurance) in the UK. People borrowing money via loans and other finance agreements came under pressure to buy PPI insurance at the time they took the loan.
In addition to unfair pressure being applied to borrowers there were cases where borrowers were misled about how the premiums would be collected, and cases where the borrower was sold insurance which was not relevant to their needs. If you have paid PPI in association with any type of loan it could be worth while checking if the PPI was mis-sold to you. If it was then you will be able to ask for your money back.
It is also now recognized that PPI is not necessarily a good deal for the borrower, and it is suggested that other insurance such as critical illness insurance may provide more appropriate protection.
The situation with PPI mis-selling has been identified by the UK’s financial regulating agencies in the last couple of years. It is believed that most major UK banks may have been involved in some cases. PPI was sold in connection with numerous credit arrangements including home improvement loans, hire purchase agreements, and credit card agreements. It has been found that unfair pressure was applied, and incorrect or incomplete information was supplied, and as a result the borrower was unfairly persuaded to take out an inappropriate type of insurance cover.
Sometimes people felt pressured that their loan application would be turned down if they did not buy PPI. Sometimes people were not properly advised that their policy required a single up-front PPI payment which would be added to the total loan amount. The repayments were then unnecessarily high. Another problem was that people often were persuaded to have insurance which they could never claim against. For example people not in employment ended up paying for insurance against losing their job, or people who became unwell due to a pre-existing medical condition found that that condition had been excluded from their protection.
Anyone who has a PPI policy at the moment, or even anyone who has finished paying off their loan may be able to claim their money back if the PPI policy was mis sold.
You can read more about then mis-selling practices which commonly happened on UK finance websites, and in the UK press (financial pages). If you think you might have a claim there are many PPI claims specialist firms which will work with you to review your policy. These firms can be located via their adverts which are quite common in most newspapers and on television, or by searching for them online.
According to consumers’ groups borrowers should consider other types of payment protection insurance instead of PPI. It is now seen that PPI is good at protecting the lender’s repayments, but doesn’t give the borrower any help with the other expenses (such as living expenses) which he is likely to have if he become unemployed. Income protection and critical illness policies would often be more cost effective solutions for borrowers.
Learn more about PPI Claims. Visit www.PPIClaimsUK.co.uk where you can find out all about how to make PPI compensation claims and start to get your cash back.
