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Why is PPI Still a Big Deal ...

... (Even Though the August 2019 PPI Deadline is Just Around the Corner)?

Payment protection insurance (PPI) was a policy that mis-sold to thousands of people, possibly millions. Most major banks, building societies and lenders were involved in the biggest selling scam ever to have hit the British banking industry.

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But with the compensation process hitting its final year, why is PPI still such a big deal? Is there an end in sight?

Tip of the Iceberg

The issues with PPI were first raised back in the mid-1990s when a customer complained he was being forced to buy an insurance product he did not want or need.

This, along with other concerns prompted organisations, such as 'Which?' the question how and when the policies were being sold to people.

The issue was also raised in Government. PPI was expensive, it offered very little cover, it was a lengthy and complicated process to make a claim and the ways in which it was being sold to customers were also suspect when compared with consumer laws.

But these problems were the tip of the iceberg. What soon became apparent was that there were limited powers to force banks to act and change their practices.

It was a long and drawn out process but eventually, the banks backed down and the process of compensation customers began.

Growing Numbers

And the numbers kept growing and growing. From one month to the next, thousands more customers lodged complaints with banks and lenders. Banks thought that it would be a 'storm in a teacup' and that very few people would come forward to make a claim for PPI compensation.

But, people came forward in their thousands - and are still doing so today.

The scale of the problem is extraordinary. So far, £33 billion has been paid back to customers with compensation claims for mis-sold PPI. One businessman claimed back a staggering £120,000. Another businesswoman claimed back £84,000 after being mis-sold PPI policies on two business credit cards for many years.

Writing on the Wall for PPI

The August 2019 PPI deadline is looming closer and yet, in spite of all that has happened, the banks are still not getting it right. At the start of February 2019, the FCA told banks they had to write to 150,000 people whose PPI compensation claims they had rejected inviting them to claim againbecause the banks had got it wrong.Some of these customers can complain about the level of commission fees paid too, something that until the Plevin case was unheard of.

Can Payment Protection Scotland Help?

We have already helped thousands of customers to claim their money back and with a very high success rate, we are the go-to claim management company.

To find out more, just call us - there is no obligation and no pressure to continue with a claim.

 

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