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Payment Protection Scandal

 In 2006, investigations by The Office of Fair Trading and The Financial Services Authority revealed real issues with the way some lenders were selling payment protection insurance. Since the investigations, the number of unhappy customers reclaiming PPI bank charges has increased year on year and it is feared the sheer size of the payment protection scandal may not yet have been revealed. 

What was the cause of the scandal?

It is difficult to pinpoint one clear cause of the mis-selling scandal and it is likely to be a combination of factors combined. On one hand, lenders garner huge profits from selling the cover. PPI is estimated to generate in excess of £5.5 billion per year making it often more profitable than the interest from the loans to which it is attached. Because of this huge profitability, many lenders offer high rates of commission to their staff to sell the cover and, in some cases, this can result individual salespeople using hight pressure sales techniques and unfair practices. In addition, the eagerness od some lenders to sell the cover meant they did not always adequately train salestaff or put in place internal processes to protect customers. These facts combined contributed to the high number of mis-seold policies.

Types of mis-selling

Another unique aspect of the payment protection scandal is that there are many different circumstances under which customers may be able to begin reclaiming PPI. Some common forms of mis-selling include: policies being added without the customer's consent, customer's being incorrectly told they had to have the cover, customer's being sold policies they were ineligible to use and customer's being sold policies without the full terms and conditions being explained.

PPI Claims Companies Assist in Filing Claims

If you have been affected by the payment protection scandal and would like to make a claim, you can start today by calling our team on 0207 471 2000. We have already helped more than 45,000 customers to pursue claims and claimed in excess of £70 million.

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Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

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