Competition Commission Set To Ban PPI
The financial world has suffered heavy losses over the last few years as we all know through the global economic downturn. And just as the UK banks thought it couldn’t get much worse, thousands upon thousands of the UK population started to get wise about a new scandal, commonly known as Payment Protection insurance (PPI).
PPI is ‘insurance’ sold when you take out a loan. The idea behind PPI is a sound one, for example, if you take out a mortgage and cannot pay the repayments due to illness the PPI would pay your mortgage for whatever period the amount of PPI taken allows, a good idea.
Unfortunately this has not been the case, and the truth is that the majority of people with a PPI has either been misold, didn’t know they had been sold PPI or have been sold the wrong type of PPI which doesn’t actually cover them. So we have a situation where thousands of people are paying their cash into a scheme that is of no use to them whatsoever and would not even pay out in any case.
So what was the point in PPI you might ask? The answer is pure profiteering by financial institutions, to the tune of 4 billion pounds annually, all based on false information provided to the customer.
Recently the Competition Commission has stated that it will no longer allow the sale of PPI products alongside the sale of other financial products such as loans, credit cards and mortgages. And on top of that millions of PPI customers are claiming back money they have unnecessarily paid out, to the tune of 177 million in the first 11 months of 2009.
This decision means that the banks will no longer be able to sell this highly controversial insurance product at the time they decide to borrow, or during a fixed term after they have taken out the loan.
There are many PPI Claim experts out there to help you claim back your PPI, contact Donns LLP to help withPPI Claims and for the best advice
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