Greedy banks presented an oversimplified explanation of the benefits of payment protection insurance policies and convinced people who were not eligible to purchase the same to pay for 20 million policies. People who did not need it ended up purchasing PPI because they had been told that it would help them avoid loan defaults. In many cases, customers were never told that their account was being charged the cost of the PPI policies.
Instances of individuals paying for payment protection insurance without knowing about it have become very common in the United Kingdom in the past 10 years. Lenders offering a loan, mortgage or credit card often include the cost of PPI in the transaction without the consent of the borrower. It is important to check whether you too are a victim of this malpractice. It was only after the media intervened did instances of misselling by financial institutions become known to the public. Customers were told that these policies were mandatory. Continue reading
The High Court’s verdict favoring the customers of loans, mortgage and credit cards has resulted in the banks forced into making ppi compensation to millions of customers. New reports say that British banks face a payment of £4.5 billion towards the ppi refunds, when the new proposals from Financial Services Authority (FSA) are in place.A set of new rules to ensure genuine payment protection insurance deals will be put in place soon. These rules sate that the banks shall have to accommodate all the past cases of mis sold ppi and these cases can go as far back as 2005, says Telegraph. Continue reading