The Central Bank has stepped up pressure on banks and financial institutions who are suspected to be involved in misselling of PPI policies. The bank had started investigating this issue and has now ordered seven financial institutions to carry out a review of their PPI policies sales since 1997. This long overdue review is a clear indication that banks can no longer claim to be completely innocent in the ongoing PPI crisis. The Central Bank had also conducted a review of the processing of claims of PPI policies in 2009 and had Continue reading
A good performance in the first quarter has managed to bring some cheer for Lloyds. However, the organization is finding it difficult to get rid of the shadow cast by the mis selling of payment protection insurance policies.
Lloyds Chief Executive Antonio Horta-Osorio stated that the firm had paid out £1.8 billion towards payment protection insurance compensation and had set aside an equal Continue reading
More and more people are worried about payment protection insurance and this is evident from the fact that banks are receiving close to 12,000 complaints on a daily basis. This is a conclusion that can be drawn from information relating to July to December 2011. During this period, the number of complaints relating to loan insurance rose by 21% as compared to the first half. 85% of all complaints received were relating to payment protection insurance. People complaining to the Financial Services Authority about savings and current accounts no longer constitute a significant percentage of the total complaints.
The extent of misselling of payment protection insurance is evident from the fact that banks had to pay out £2.1bn to customers as compensation for missold policies in the second half of 2011. This meant that a policy that was very popular amongst borrowers no longer enjoyed their support. People preferred PPI policies because it helped them take care of repayments even when they lost their jobs or fell ill. However, misselling complicated the process and banks ended up paying billions of pounds as compensation to customers. The number of cases and claims being filed has compelled the Financial Services Authority to extend the original deadline of eight weeks for settlement of claims.
Consumer Groups- Misselling Widespread
Richard Lloyd, chief executive of consumer group Which?, said that the large number of complaints relating to PPI misselling is a clear indication of how common this problem was. He called upon the FSA to take strict action against institutions that were trying to slow the process of settlement of claims. Considering the fact that Barclays received more than 250,000 in the first half of 2011 and more than 280,000 claims in the second half, fears that customers may end up waiting for a long time for their money are genuine. Lloyds Banking Group has received the largest number of complaints amongst banking groups while Barclays has received the largest number of complaints per brand.
You have the right to recover money paid on a payment protection insurance policy if it was sold to you as a compulsory or mandatory option. If you were not given the freedom to reject the product altogether, then you can recover the money that you have paid till date. There are certain documents that must be collected and analyzed before the policy can be activated. Was your employment history checked? What about your medical history? These factors have a huge impact on the terms and conditions of the policy. If these points were not analyzed, then chances are high that you will not enjoy any benefit whatsoever. The best option is to take a look at any and every credit related transaction that you have finalized in the past 10 years. Check whether you are paying money towards payment protection insurance on these products. If yes, then you should not hesitate to take steps to recover the money.
Misselling of payment protection insurance has become a very serious problem in the United Kingdom. However, not every policy can be classified as a missold policy. If you were sold a policy that offers absolutely no benefit whatsoever because of your ineligibility or exclusion or if misrepresentations were made during the sale of the policy, then you can claim compensation from the lender. On the other hand, you cannot claim compensation just because you purchased the payment protection insurancepolicy. This means that you should analyze the transaction and look for certain characteristics that will help you claim compensation with a strong case. Keep the points given below in mind and you will be in a position to take the right decision.To be charged for this policy without being informed or without permission being obtained explicitly is not acceptable.
To be sold this policy when not eligible for the protection because of retirement, self-employment or unemployment is a ground for valid claims.
To be forced to purchase this policy when you were already covered for this risk can help you file valid claims.
If you were made to believe that purchasing the policy will increase your chances of getting the loan or that purchasing the policy was mandatory, then you can file a claim enjoy a refund.
You can seek refund if the policy did not cover the entire tenure of the loan.
The policy does not offer benefits if you are suffering from certain medical complications. If you were sold this policy when you were facing these complications, then you can file a claim and get a refund.
If you analyze the situation properly and file payment protection insurance claims sensibly, then you can enjoy a refund and join the club of millions of individuals who have recovered their hard-earned money.