PPI for Lender’s Interests
PPI (Payment Protection Insurance) was mis-sold to many people in the UK in recent years. PPI was mis-sold if you did not want it, need it or ask for it. Many, if not all, major UK banks and building societies have had to pay compensation to people who have been mis sold PPI. PPI claims can be made by any person using advice found from the financial ombudsman, or from consumer groups such as which? But many people may find it more straightforward to contact one of the companies specializing in PPI claims. These companies are familiar with the most common grounds for making a claim, and with the correct procedures to follow.
PPI, or Payment Protection Insurance, was sold to protect the lender’s interests alongside loan agreements for various forms of consumer credit in the UK. The PPI would cover the repayments, or often just cover the interest, in the event that the borrower was unable to pay for various reasons, which included loss of income due to redundancy and illness. PPI was sold for various types of credit agreement, including PPI personal loans, hire purchase agreements and credit card agreements.
Mis-selling of PPI occurred where the customer did not want PPI, or did not need PPI, or did not ask for PPI. The banks involved, or their agents, have on occasion acted in ways which are contrary to the rules laid down by the UK financial regulation authorities. In cases where PPI was mis-sold the customer will be eligible for PPI compensation. This will usually be the cost of the premiums charged to the customer, plus interest.
In some mis-selling cases the bank’s representative or agent unfairly pressured the customer to take the PPI. These include cases where the customer was told that the loan would not be authorized unless PPI was taken.
In other cases the PPI sold was not appropriate to the customer’s needs. In effect the customer was charged money for a useless product. These include all cases where the customer was either retired, unemployed or self-employed. These people would never be able to claim for loss of income due to redundancy or illness, and the bank was not allowed to sell this type of insurance to them.
Also some classes of employee, particularly in public sector occupations such as the NHS, teaching, police, civil servants etc have good sickness benefits built into their contract of employment. Selling PPI to these people can be classed as inappropriate.
Finally there were mis-selling cases where the customer was not even aware that they had bought PPI. The bank simply added the premium onto the amount being borrowed. To add insult to injury the customers were then charged interest on the PPI as well as on the loan amount.
Most major UK banks, building societies and other financial institutions have been found guilty to some degree in the PPI mis-selling scandal, and have had to pay compensation to some of their customers. If you have had a personal loan, a hire purchase agreement, or a credit card agreement in the last few years, and PPI was mis-sold as part of that loan agreement then you may be eligible for some form of compensation. PPI was mis-sold if your did not want it, need it, or ask for it. You can make a claim as an individual, using information from UK consumer groups (eg which?), or you can contact a specialist PPI claims company.
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