Alliance and Leicester PPI Claim
Mis sold PPI has dominated the financial headlines in recent months after the High Court chose to reject The British Banking Association’s challenge of new Financial Service Authority (FSA) rules regarding the sale of payment protection insurance. The decision was excellent news for consumers and it is hoped it will led to a real and permanent solution to the ongoing issue of mis-sold PPI.
Issues surrounding the sale of payment protection cover were first revealed by The FSA in 2006 when they conducted an investigation into the industry. As a consequence of their investigations, several lenders were fined. One of these lenders was Alliance and Leicester who was fined £7 million for failures connected with PPI sales. As a consequence, there has been a significant uplift in the number of customers making Alliance and Leicester PPI claims.
The FSA investigation discovered Alliance and Leicester had sold 210,000 PPI policies between January 2005 and December 2007. The main problem with the way some of these policies were sold was that advisors had been trained to recommended cover which customers may either not want or need. It also discovered instances where customers had been put under unacceptable levels of pressure and staff had failed to fully explain the costs of the cover. Many of the customers effective have now made an Alliance and Leicester PPI claim.
Even if your lender was not one of those fined by the FSA it does not mean that your individual policy was not mis-sold. The FSA fines were handed to companies who had significant or widespread failures that affected a large number of customers.
Whether or not your payment protection policy was sold or not depends on the information you were given by the salesperson at the point of sale. Policies will ordinarily be considered mis-sold if your lender failed in some significant way. Some examples are shown below.
The customer was not told the cover was optional – shockingly, some sales staff incorrectly told customers that they had to have PPI and did not have a choice.
The customer was told taking out PPI would guarantee the approval of their application – some sales staff took advantage of customers in a financially vulnerable position by making this claim. It is not true.
The customer did not have the terms and conditions fully explained to them – in order for you to make an informed decision your lender should have fully explained the terms and conditions of the policy to you. It is particularly important that you would made aware of anything that was not covered by the policy.
The customer did not have the full costs explained to them – PPI can be very expensive so it is vital that a customer is made fully aware of the financial commitment involved. PPI can significantly increase borrowing and may mean it takes the customer longer to repay the debt or that their monthly instalments are considerably higher.
If you are interested in making an Alliance and Leicester PPI claim or payment protection claims against another lender, call our team on 0207 471 2000.
blog comments powered by