Many are asking in unison, ‘what happens now?’ after the much awaited decision of the British Banking Association to drop their legal battle over Payment Protection Insurance (PPI).
PPI became very successful as an insurance policy on mortgages, loans, credit cards and repayment if an individual became ill or unemployed. During the 1990’s – the time of its launch – the banks tuned into how profitable the loan actually was, and began forcing it upon clients, but could not hide from the major problems people were beginning to become aware of.
The product was becoming increasingly expensive, with premiums adding 20% – 50% to the cost of a loan. It was also becoming to be so carefully structured, it was minimising the chances of individuals being able to make a claim if and when they needed too. The banks were mis-selling the product to clients who knew nothing of it, or to those who would never be able to claim, e.g. – the self-employed. The final problem, something which is still happening is those who were claiming and had a chance of getting back what they were owed, were facing a lengthy and complicated claims procedure.
The tension building up over the years finally lead to the Financial Services Authority (FSA) stepping in and having their say. Bringing in strict rules about PPI, the FSA have insisted the banks should give the correct refunds to those who have been affected by a breach of the PPI rules.
Following a lengthy court battle, the banks finally gave into the new rules and the top British banks have since agreed to pay victims the refunds they deserve.
The message from the FSA is to check if have ever taken out a PPI policy and to check whether or not it was mis-sold to you. Go over what it covered, whether it suited your needs at the time, when it was sold to you and most importantly, if you knew you were being sold it. If you are unwilling to go it alone, contact a PPI provider, such as Brunel Franklin, to begin your claim and get back the money you are owed.
Sally Bowyer, Managing Director of financial claims specialist BrunelFranklin.com says that the public are slowly becoming wiser to the tactics of mis-selling, but that a lot of the damage is already done: “It is important to realise that we may all unwittingly have taken out PPI during the years when lenders were offering a seemingly endless line of credit in the form of loans and credit cards in particular. It costs nothing to check your paperwork for insurances that you may not even know you are paying for. PPI per se is not a bad product, however the onus is on the vendor to ensure the product is the best for your needs at the time of sale. If the best product for your needs was not offered, or if you were unaware of the true cost, for example, you may have grounds for a refund.”
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.