PPI Mis-Selling
If you have taken out a loan or credit card, or secured a mortgage, in the past few years you need to understand what all the fuss is about PPI mis-selling, a subject that has dominated the financial pages for some time. An area of finance that is often very complex, many people may be unaware that they hold PPI policies, such has been the cloak and dagger method of many in the market of late.
PPI – payment protection insurance – is an area of insurance that covers many different instances. It is designed, basically, to ensure that should you find yourself unable to work you will have a policy to draw upon that enables you to keep up mortgage or loan payments for a given time. The problem comes with the very specific terms of some policies, and this is why PPI mis-selling has become big news of late. To find out more about PPI mis-selling, simply fill out the 2 minute form or call us on 0800 840 72 91 and speak to a member of our team.
A few years back the Financial Services Authority acted upon a number of complaints and PPI claims from various sources about malpractice in the industry, and their investigation was something of a revelation. What they discovered was that many people had been sold policies that were of no use – indeed, some retired people had been granted policies that were not applicable – while others had been sold policies they didn’t understand; in addition, some customers had been led to believe they needed to take a particular policy to be granted a loan – something that has never been the case as there has always been freedom of choice – and yet more did not even know they were paying into such a policy.
All of these examples of PPI mis-selling led to a major reorganisation of the regulations surrounding the manner in which such policies can be sold, let alone in fines being imposed upon those who had been guilty of such malpractice.
As a result, it is now against the regulations for a lender to sell a policy to a borrower at the time the loan is granted; instead they have to give a seven day period in which the borrower is entitled to shop around for the best deal. Furthermore, clearer explanations of the policies themselves have to be granted, ensuring that the customer fully understands the circumstances in which the policy will pay out.
All of these new rules have led to a once murky area of finance being comprehensively cleaned up, and to the consumer getting a much better deal all round. In addition, many people who have found they were the victims of PPI mis-selling have been able to claim compensation for the extra costs and inconvenience incurred, and as a result the industry is now at less risk from future compensation claims. If you’re a victim of PPI mis-selling or you want to find out if you are, simply fill out the quick and easy form or give us a call on FreePhone 0800 840 72 91 and speak to one of our friendly advisors.
