Payment Protection News
Over the last six years payment protection insurance has made the news countless
times. It began back in 2005 when the Citizens Advice Bureau launched a 'super
complaint' regarding the cover. Two further investigations by the Office of Fair
Trading and the Financial Services Authority followed in 2006 revealing concerns
the cover may have been widely mis-sold. The story really gained the publics
attention; however, when the Financial Services Authority began handing out
fines to large lenders including Alliance and Leicester, Egg and Capital One.
Recent Payment Protection News
Following the investigations many unhappy customers began making complaints
regarding mis-selling and claiming back bank charges.
Payment protection hit the news in 2010, though, when the British Banking
Association requested a High Court review of new Financial Service Authority
guidelines regarding the cover. The Court returned its verdict in April 2011
finding in favour of the FSA.
Banks set aside funds
Following the High Court's decision, several manager lenders announced they were
allocating funds to compensate customers who needed to claim back PPI
mis-sold to them. As a consequence of this decision, several of these lenders
posted significant losses during this financial period.
Future Payment Protection News
Although it seems as though banks have finally acknowledged they need to address
the payment protection issue once and for all it is likely that the mis-selling
issue will continue to make headlines for months if not years to come. It is
estimated that there are currently 20 million payment protecion policies in the
UK and it is unknown just how many of these many have been mis-sold.
If you believe you may have been mis-sold a payment protection policy and would
like to make a claim or you would just like more information call our team on 0207 471 2000.
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