15 December 2014
Recently, we covered the news stories that 3 of the biggest banks in the UK have added even more their PPI compensation pots as they expect the flurry of PPI compensation claims to continue for some time yet.
And so, like most story lines that continue for long periods of time, here at Scottish PPI Claims we thought it would be useful to re-cap on the main issues… as well as how we can help you!
PPI is payment protection insurance. It was a policy that was sold to customers, with a promise that in the event they were unable to continue making repayments due to loss of income as a result of ill health, for example, this policy would kick in to action. In other words, the policy would make the repayments.
On the face of it, you would think so. It seems a responsible thing to do, taking out a product that could make repayments because you couldn't. This would allow you time to recuperate, as well as your valuable credit score remaining good.
Some blogs and articles may say there was nothing wrong with the product but consumer organisations such as Which? say that this is not the case.
The terms and conditions of the policy were failure rigid and narrow, which meant that some of the more 'common' health reasons why people sometimes take time off work were not covered, e.g. bad backs, mental health issues were not 'covered'.
It was a policy that also did not cover existing health conditions, something that many people were not made aware of.
In fact, the conclusion that many consumer organisations came to was the policy on sale by banks and lenders in the UK was far too expensive for the cover it offered.
Yes and no. It is widely accepted that the vast majority of customers 'sold' PPI are entitled to a refund. However, the onus is on the customer is to prove they were mis-sold it in the first place. In many cases, this is not hard to prove.
In other cases, however, it can be a little more difficult although pressure from the vast majority of regulators and consumer organisations to get this PPI mis-selling saga resolved as quickly as possible is making banks act in the right way, and do so within the specified guidelines.