How the banks haven’t been so ethical – PPI

Payment protection insurance is a type of insurance policy that repays loans or credit card payments when customers come across financial difficulty caused by sudden sickness, accidents or injury. Like any financial product, PPI had certain terms and conditions that had to be met to enable a claim on the policy, and had certain exclusions that applied.  These however, were often not relayed to customers, and neither were the eligibility criteria.  Those who were self-employed or retired, for example, were not eligible for a PPI policy so they shouldn’t have been sold one. But they were, and millions of customers were duped into purchasing this insurance and paying additional premiums on top of their borrowing repayments.

When the number of complaints about PPI reached a high volume, an investigation found that PPI was mis-sold to customers by banks and other lenders in about 90% of cases.  The law took the side of the consumer and the unethical practices of the banks were put in the spotlight.  The High Court ruled the banks were to refund all customers mis-sold the insurance policy, with interest added to the compensation amount too.

The Lloyds Banking Group takes the crown for the largest amount of miss-selling of PPI policies. By the end of 2012 they had spent approximately £4.3bn in compensating their PPI claims victims. The Lloyds Group had also been fined however, at the cost of millions, for delaying compensation payments to customers.  Like many of the banks, they were very quick to take people’s money and to demand repayments and induce fees and fines where it suits them, however when it comes to paying up themselves they are far from prompt.  HSBC and Barclays have also allocated millions to repayments for mis-sold PPI.

If you have been affected by mis-sold PPI, seek to claim your money back now.  Get your claim in as quickly as possible as the banks are doing their best to try to force a deadline for PPI compensation payments to customers. This is worrying as many customers (millions who still don’t even know they have PPI) are yet to make a claim.  Check your loan or card agreement now. To make your claim, see here on how to proceed.

The average payout amount for successful PPI claim compensation is £3,000 – an amount that could make all the difference to so many individuals and families out there today.