Yorkshire Bank mis sold PPI
For well over a decade many customers considered taking out Loan protection insurance vital when undertaking any kind of significant borrowing. In the last five years there has been a shift in opinions, though, as a series of exposés have revealed significant issues with the cover and the way it has been sold in the past.
The high cost of PPI
Payment protection cover on loans can cost approximately 13% to 25% of the base loan value. On a £15,000 loan this could, therefore, add between £1,950 and £3,750. The cost of the insurance will also incur interest at the same rate as the rest of the loan.
If the full cost of your payment protection policy was not explained you may have Yorkshire Bank mis sold PPI and may be entitled to make a claim.
The low payout rate of PPI
A survey by the Competition Commission in 2008 found that just 15% of customers who tried to use their loan PPI policy received a payout. This statistic really brings into question the value represented by this type of insurance, but also highlights the huge profits lenders made from the cover in the past.
Mis-selling
In 2006 the Financial Services Authority first investigated payment protection cover. Further investigations came over the coming years and significant failings were uncovered. Several key lenders were handed large fines and the PPI industry as a whole was urged to improve standards. Mis-selling, generally, centres on one of two types of failings either (a) the customer is not given full information or is given information that is incorrect or (b) the customer is sold a policy that they are ineligible to use or that is unsuitable for their needs.
If you think you may have Yorkshire Bank mis sold PPI and would like to make a claim call our team on 0207 471 2000.
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