The mis selling of PPI began during the 1990′s when the product was first introduced to the UK market. Banks incorrectly marketed the product into their financing services. As a result, millions of UK citizens were mis sold PPI. The Financial Services Authority validated this as fact in 2005. The complaints of many customers and consumer groups led to the investigation of the sales methods of banks, which proved to be unfair for customers. Banks recently provided a £3.2 billion compensation package for the entire UK for their mis selling. In order to receive their part of money from the package, UK citizens must file PPI claims as soon as possible.
PPI or Payment Protection Insurance is intended to protect borrower’s loans from incurring large interest rates and late repayments in the event they encounter loss of income or financial problems. Single premium PPIs can provide loan repayments in case borrowers become extremely sick, have severe injuries from fatal accidents or become unexpectedly unemployed. The PPI requires their holders to remain healthy for a particular period of time before they can receive their benefits. They must also be within the claiming age to receive it as well.
Many UK citizens complained about bank representatives who did not thoroughly explain the PPI’s terms and conditions. This is clearly a violation of law. The Financial Services Authority states that bank representatives and insurance brokers are responsible to make clear to their customers all details of the products they provide. Banks also stipulate the requirement of loan security. It is reported that banks favoured secured loans, which is unfair according to consumer groups. They state that banks should only approve loans for applicants who have suitable financial capabilities.
Experts state that banks earn as much as millions per year because of mis sold PPI premiums. Ineligible customers, those who purchased the PPI even if they initially had medical conditions, were unemployed or self employed or beyond the claiming age, were forced to forfeit their premiums to banks. Bank representatives, earning through commission, also earned a lot in PPI mis selling. Banks earn more through the penalty fees of late-paying customers because of mis sold PPI. The added PPI repayment amounts increase the likelihood of customers to pay late.
If you intend to get all your refunds through a PPI claim, it is best that you consult with www.ppico.org.uk. They have the experience, expertise and knowledge to make your PPI claim work in the best manner for you. Ensure that you are working with a no win no fee claims handling service to help you get the refunds you deserve while not placing your finances at risk.