Payment protection insurance, referred to more often as PPI, has emerged as a particularly controversial subject over quite a substantial number of years now. The mis-selling of PPI which has been exposed within various financial institutions, including building societies, loan providers and banks, has resulted in one of the largest financial scandals to hit the news for a very long time. It is difficult for anyone to avoid hearing about the high court judicial review that lead to new information regarding PPI, wherein the banks were attempting to get out of the guidelines that had been stipulated by the FSA. These guidelines ordered financial institutions to actively review customer records and discover any and all customers who may have been sold PPI that they didn’t need, want, or ask for, even if that customer had not yet registered a claim for PPI themselves. Luckily, they failed to overcome these stipulations, meaning that the bills that banks could be expected to deal with could total anywhere into the billions of pounds.
What is PPI and how is it mis-sold?
Once, payment protection was a type of insurance that had been designed as a way of protecting individuals who took out some form of credit, or loan, then found suddenly that they were unable to continue making repayments as they were supposed to, due to an illness, injury or sudden unemployment. On the surface, PPI was considered to be a reasonably responsible form of insurance for credit customers to take out. However, the problem emerges when financial institutions begin to mis-sell this form of insurance to people who don’t need or want it.
There are numerous ways in which PPI can be deemed ‘mis-sold’, for example:
- Lenders may have suggested that PPI was a compulsory part of taking out a loan for customers.
- Financial institutions might have sold PPI to a consumer that does not cover the full length of their loan, meaning they could not use it when it was potentially necessary.
- Some customers have had PPI added to their loan without even being informed of what was happening.
Thousands of people have been affected by this financial scandal, and those who believe that they, or someone close to them has been affected by it may be encouraged to take action now and claim back the compensation they deserve. First of all, making use of a website such as www.freeppicalculator.co.uk can help consumers to understand the amount of money that they may be owed as the result of a mis-sold policy. After you have logged onto this website and found out how much you are capable of claiming, you may then go on to speak with a financial specialist who has dealt with PPI based claims in the past. The most important thing you can do, is take action.