PPI Claims News
PPI Claims News
Payment Protect Insurance is a type of insurance policy sold alongside credit cards, store cards, mortgages and loans. It is supposed to protect the policyholder from financial hardship if, due to accident, injury or redundancy, they are unable to work. The trouble with Payment protection is that it has often been mis-sold. As a result, it has become all too common to see PPI claims news stories in the press.
The mis-selling scandal was first exposed back in 2006 when separate investigations by The Citizens Advice Bureau, The Office of Fair Trading and The Financial Ombudsman Service revealed major failings in the way the policies were being sold. Shortly afterwards PPI claims news stories began to break, revealing how some lenders had used pressure selling techniques, mislead borrowers as well as selling many expensive, unsuitable policies. Below is a list of some of the most common methods by which policies were mis-sold.
- Customers were not told the cover was optional.
- Customers were not made aware of the full costs, terms or conditions.
- Customers unsuitable for the cover, due to age or circumstances, were commonly sold cover.
- Customers were told taking out cover would improve their chances of being approved for credit.
PPI Claims news stories regarding the issue damaged the reputation of many lenders and outraged borrowers. As a result, the number of formal complaints regarding mis-sold PPI increased dramatically. Many were dismayed when they examined the small print of policies and discovered what little protection they provided or when they discovered the true cost of the insurance.
Perhaps the most damaging PPI claims news story was the revelation of the fines handed out to lenders who had failed to sell PPI cover correctly. A list of some of the major lenders fined is below:
Alliance and Leicester (Fined: October 2008). Alliance and Leicester were fined for failings in telephone PPI sales made between January 2005 and December 2007. PPI Claims News revealed the lender would face a huge £7 million fine.
Capital One (Fined: February 2007). Capital One were fined in relation to PPI sales on credit and and loans made between January 2005 and April 2006. Some 50,000 customers were not provided with the important information concerning their payment protection insurance policy. PPI claims news reported the fine faced as £175,000.
HFC Bank, trading as Beneficial Finance and Household Bank (Fined: January 2008). HFC Bank were fined regarding in-branch sales taking place between January 2005 and May 2007. It was found the bank put its customers at an unacceptable level of risk in terms of being sold a PPI policy unsuitable for their needs. PPI Claims News reported their fine at £1,085,000.
Land of Leather (Fined: May 2008). Land of Leather were fined for allowing members of their sales team to sell payment protection insurance policies without appropriate training or monitoring. The failings took place between May 2006 and February 2007. Land of Leather received a fine of £210,000 according to PPI Claims News reports.
Liverpool Victoria (Fined: July 2008). Liverpool Victoria faced a fine of £840,000 relating to loans sold via telephone sales between Mid-January 2005 and early August 2007. The fine concerned the sale of single premium payment protection insurance policies. The bank agreed to refund policyholders who had been sold policies unsuitable for their needs as well as, according to PPI Claims News, compensating them with interest.
Loans.co.uk (Fined: October 2006). Loans.co.uk were handed a £455,000 fine for failing to implement systems and controls necessary to minimise the risk of inappropriate PPI sales.
In addition to the above, many other banks, building societies and brokers faced fines and the industry as a whole was forced to re-examine the way it sold payment protection insurance. PPI Claims News played a major role in focusing the public's attention on the issue and highlighting mis-selling. In some cases customers had even had PPI added to their loans without their knowledge and were shocked to learn they had been inadvertently making payments for something they did not want or need.
The good news is the awareness raised by PPI Claims News had allowed many people to step forward and make complaints for mis-selling and, as a result, many have been able to claim back their money. If you believe you may have been mis-sold a PPI policy and would like more information on how to make a claim, complete the quick claim form on our site.