Mis sold PPI has become a huge issue in recent years with more than 1.5 million unhappy customers complaining to the Financial Services Authority and millions of pounds being paid out in compensation. If you have bought any kind of payment protection or loan protection insurance there is a significant risk that your policy may have been mis-sold.
There are many different ways in which PPI can be mis-sold. In some cases the policy was added without the customer’s knowledge or the customer was incorrectly told the cover was compulsory. Other forms of mis-selling can be less obvious such as instances where the costs of terms and conditions were not fully explained to the customer. This kind of failure can be a particular issue as PPI policies can often to be expensive and have a high number of exemptions. This means customers may be paying a high price for a policy that provides very little protection.
The cost of PPI varies depending on the type. On a credit card, E.g. PPI Goldfish, is usually charged on a monthly basis depending on the outstanding balance and is usually charged of a rate of around 79p per £100 outstanding. If, for example, the policyholder owes £5,000 on their credit card they may pay around £39.50 a month for PPI.
The cost of PPI becomes more of an issue when the high number of exemptions are taken into consideration. Most policies do cover pre-existing medical conditions or common ailments such as stress or back pain. In fact a 2008 Competition Commission survey found that just 11% of people who tried to use their credit card PPI policy received a payout. This means the vast majority of claims were rejected and that many customers were paying for cover they were ultimately unable to use.
To start your PPI Goldfish claim call 0207 471 2000.
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