Banks Make A Killing On Hidden PPI Sales Each Year
Major high street Banks and other financial service providers have recently offered a product called Payment Protection Insurance (PPI) to cover the consumer against the unforeseen lack in ability to repay a loan agreement.
Banks aren’t obliged to offer this service but if they do they are required to ensure they understand the background of the customer and are certain the PPI would cover them in the unforeseen.
Banks can exploit PPI in a few ways and the most common is simply allowing the customer to select PPI, simply by ticking a box and this releases the bank from the responsibility to correctly sell a customer the right product. If that customer happens to be unlucky enough to need the PPI, the chances are they will not be eligible for the product they have paid for.
The consumer would then remain unaware that they are completely ineligible for the product and if they did find themselves unable to make repayments they would not be provided with any insurance. Many thousands of customers have fallen on hard times only to find out there is no back up plan to pay their mortgage even though they thought they had planned ahead.
A second method is much worse, by means of signing a contract a customer can be unknowingly accepting to pay for PPI when buying a financial service; this is likely to be complexly written into the small print thus avoiding any legal indiscretion.
This kind of scamming has accounted for almost 1bn profit for the UK banks in the last year and with the number of unemployed remaining high this figure is likely to increase. It has reportedly affected over 8000 families in the UK in 2009. Many families are seeking compensation to claim back their PPI payments.
Want to find out more about PPI Claims, then visit Dons LLP site on how to choose the best Mis Sold Payment Protection Insurance for your needs.
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