Payment protection insurance, otherwise known as PPI, has been around in the UK for several years. It is a type of insurance policy designed to safeguard financial consumers in the event that they become unable to meet their loan, mortgage or credit card payments because of accident, injury or being out of work.
Despite being around for decades it was not until 1998, however, that it became apparent that PPI policies were being widely mis-sold by unscrupulous companies in the financial sector including almost all of the main high street banks. “Which?”, the consumer protection magazine, is often given credit for uncovering the PPI mis-selling scandal by highlighting the expense of PPI policies and the very poor claims settlement record. They deemed PPI policies largely ineffective and very poor value for money.
Many leading newspapers picked up and reported the scandal in the press between 1998 and 2004, publishing numerous shocking case studies of people who tried to claim on their PPI policy but were refused a payout, or who had been told they had to have PPI as a condition of a loan or credit card agreement when in fact this was not the case.
The Financial Services Authority (FSA) stepped in towards the end of 2004, and began to regulate the sale of consumer insurance policies, including PPI. In 2005 the CAB (Citizens Advice Bureau) published a report highlighting the problems with the systematic mis-selling of PPI which brought the scandal further forward into the minds of consumers and and the financial regulator alike.
In November 2005, the FSA wrote to all leading bodies within the banking as well as financial sector emphasizing their particular understanding of the problems with PPI mis-selling and urging them to create significant changes and then to compensate those people who had been affected by their deceitful procedures. The time since 2005 has seen one bank after another exposed in the scandal and quite a few of the primary banks and financial institutions fined a large amount of money by the FSA in response.
In 2010 the major banks took an appeal to the High Court and for the period whilst the actual High Court hearing was pending most of the banks refused to progress PPI claims placing customers holding out and out of pocket with regards to settlement due. Nevertheless, the appeal process ended in 2011 with the banks being defeated in their pledge to actually move away from their particular accountability to pay customers over the mis-selling of PPI. Just what exactly does all this mean to you? As we move into 2012, banks have been strongly advised to proactively interact personally in the computation and also settlement of compensation for those customers who have been affected by PPI mis-selling.
Just what exactly does all this imply to you? As we move into 2012, banks have been strongly told to proactively cooperate in the computation and also settlement of compensation for those buyers who have been impacted by PPI mis-selling. Though the window of opportunity is unlikely to be open for a long time, therefore individuals who have PPI attached to any type of loan, credit card or perhaps mortgage need to get their claim ahead as soon as they possibly can if they really feel it was actually mi-sold. Hence examine the paperwork associated with any kind of loan, credit card or perhaps mortgage you took out during a period of no less than 10 years and consider whether you have cause for a compensation claim with regard to mis-selling.
Go Claim PPI have a 100% success rate at helping people to gain compensation for valid PPI Claims in the UK.
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