02 March 2015
Late February 2015 saw the announcement by the Financial Ombudsman Service (FOS), that claims for compensation for mis-sold payment protection insurance (PPI) were levelling off but, this could lead some people to think the mis-selling saga is nearly over…
You could be forgiven when you see this headline that this means the number of compensation claims for mis-sold PPI is decreasing; you may think this means that compensation claims are on the wane and that the writing is on the wall.
They were noting that PPI compensation claims being referred to them was levelling off; they also pointed out that there was a new wave of compensation claims that they were dealing with. These claims now being submitted to them were far more complex than the cases they had dealt with thus far.
Compensation claims for mis-sold PPI are still riding at a constant rate and, if you have not submitted your claim yet, then why not take some time today, to take a serious look at whether you could be the next successful claimant for PPI compensation?
Payment protection insurance was a product that banks, lenders and building societies sold their customers; they said that this insurance product would 'protect' their repayments on their loans etc. should they - the customer - be unable to keep up repayments due to loss of income. This loss of income could be caused by redundancy or ill-health, for example.
The issue with PPI is not so much the product itself but the fact that the product was not matched to the circumstances of the individual.
For example, people who were unemployed, self-employed or retired had no need for the PPI policy as it was based on a structure, regular income.
The cover that the policy offered was also narrow, and not really fit for purpose for the vast majority of people; for example, those people who had a pre-existing medical condition - the very thing that was most likely to interrupt their income - were not covered under this policy.
Also, some PPI policies sold to customers also excluded some of the more common ailments and illnesses that again, were likely to impinge on a customer's ability to earn an income. For example, mental health issues - depression etc. - and spinal injuries or problems were not covered in many cases.
Adding insult to injury was the fact that customers were paying well over the odds for an insurance product that offered them little or no cover. Would you pay for an insurance policy if you knew the possibilities of making a successful claim on it was as low as 15%?
Claim you money back! There are still thought to be many customers who are affected by the mis-sale of PPI who are yet to make a claim for compensation - are you one of them?