Once upon a time, individuals would often use the same local bank for their entire lives. In those days, bank customers believed their bank was prudent, reliable, and averse to risk. Over the past decade, it appears that banks’ approach may have changed considerably, with one of the shakiest new financial products on offer being PPI, or Payment Protection Insurance.
As more data comes to light, it seems clear that PPI may have been improperly marketed and sold to consumers in certain circumstances. As the PPI scandal continues to make its presence felt in financial headlines, consumers need to be aware of new developments on the issue.
What is the root cause of the PPI controversy?
According to consumer groups, Payment Protection Insurance claims have an extremely low rate of successful claims, as opposed to other forms of insurance. These high rates of denial are enough to have created considerable controversy and culminated in a major legal action being taken against the Banks. Commentators have pointed out that PPI has been sold to countless consumers who were in fact ineligible to receive the protection offered.
Remarkably, research shows that up to 40% of PPI holders may have been unaware that they had purchased the policy. Third party loan agents may have a particularly patchy record when it comes to mis-selling PPI. Many of these agents were alleged to have misled loan applicants in one of two ways. Firstly, by saying that a loan was “protected” without defining PPI and its costs. Secondly, by incorrectly claiming that purchasing PPI was “mandatory.”
Barclays was recently on the losing end of a major lawsuit on behalf of bank customers. Expecting a court victory for Barclays, major banks had simply stopped addressing consumer PPI complaints well before the resolution on that case. After the unfavourable ruling, banks now have to deal with an extensive backlog, as well as a flood of new claimants. It’s good news that bank customers are receiving some attention for their legitimate woes. Nevertheless, PPI claimants should consider hiring professional help in navigating the maze of PPI claims.
Sally Bowyer, Managing Director of Brunel Franklin, stressed that vendors had a responsibility to ensure their products were appropriate for individual customers before completing the transaction. “Unfortunately, the mis-sale of PPI policies is by no means unusual. Customers may well wish to protect their loan repayments, but all too often they have been sold products that were completely unsuitable for their needs.”
“BrunelFranklin.com has helped thousands of people who have been victims of PPI mis-selling. If you have grounds for a refund, it will be pursued by our dedicated staff, experienced in the complexities involved to give you the very best chance of securing the maximum payout.”
Learn more about PPI refunds and find out if you could apply for a refund today! Visit the website www.brunelfranklin.com or call Brunel Franklin, free, on 0800 051 54 51