Over the last few years the financial world has suffered some heavy losses due to the economic downturn. And at the point where banks and other financial institutions thought they had hit rock bottom, the majority of the UK population that had been misold Payment Protection Insurance (PPI) began to realise that they could claim their cash back.
PPI is ’insurance’ sold when you take out a loan. The idea behind PPI is a sound one, for example, if you take out a mortgage and cannot pay the repayments due to illness the PPI would pay your mortgage for whatever period the amount of PPI taken allows, a good idea.
Unfortunately this has not been the case, and the truth is that the majority of people with a PPI has either been misold, didn’t know they had been sold PPI or have been sold the wrong type of PPI which doesn’t actually cover them. So we have a situation where thousands of people are paying their cash into a scheme that is of no use to them whatsoever and would not even pay out in any case.
PPI is a lucrative business for the company selling the product. It’s estimated that it brings 4 billion pounds annually to financial institutions.
Well it all looks to be over for the banks. On top of the millions of PPI customers claiming back money they have unnecessarily paid out (to the tune of 177 million in the first 11 months of 2009), the Competition Commission has recently stated that it will ban the sale of PPI alongside the sale of financial products such as loans, credit cards and mortgages.
This decision that the Competition Commission has made now means that financial institutions will no longer be able to sell PPI insurance products to their customers when selling a loan or other product.
There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice
Tags: bank, claims, credit, DUI insurance, insurance, loan, mortgage, payment protection, PPI