PPI Alliance and Leicester
If you have a loan with Alliance and Leicester it is quite likely that you may also have loan protection insurance. Loan protection insurance, often known as payment protection insurance, is a type of insurance that insures a borrower against financial hardship by stepping in to cover repayments if they are unable to work as a result of involuntary unemployment. The cover is controversial, though, and has made headlines because of issues surrounding the way it was sold.
In 2006 a Financial Services Authority (FSA) investigation into PPI sales found widespread issues and failings across the industry. Following the initial investigation the number of payment protection insurance claims rose sharply and several lenders were fined for mis-selling the cover. The lender who faced the largest fine of all, at a staggering £7 million, was Alliance and Leicester.
The FSA discovered that PPI Alliance and Leicester policies had been recommended to all customers even those that may not want or need the cover. The Group’s Chief Executive at the time, David Bennett, was quick to make a statement assuring customers that the lender had already ‘tightened up processes.’ The FSA’s investigation covered a period between January 2005 and December 2007 when approximately 210,000 policies were sold. It is not known how many of these may have been mis-sold.
The FSA’s investigations extensive investigations revealed many common problems with the way payment protection was sold including policies being added without a customer’s knowledge or sold to customers who were ineligible to make a claim. The FSA also highlighted the failure by some lenders to put in place adequate processes to protect customers from being sold an unsuitable policy.
If you believe you may have been mis-sold a PPI Alliance and Leicester policy you can start making your claim today by calling our team on 0207 471 2000. We work on a no win no fee* basis and we have so far helped in excess of 60,000 customers to make a complaint.
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