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Archive for tag: Compensation Paid

Mis-sold PPI – another landslide victory for the consumer

Millions of customers have been mis-sold PPI by major UK banks and other high street lenders - and you are probably on of them if you had a loan, credit card, store card, catalogue account, mortgage or another 'loan' product from the mid-1990s onwards.

Victory

Payment Protection Insurance (PPI) is a niche product and was meant to cover people and their ability to make repayment on the loan should they be unable to do so because they lost their jobs or were too ill to work.

But, it was a product that mis-sold on a huge scale. The terms and conditions of PPI are narrow and limited, but this didn't stop the banks and financial companies from selling it their customers, even when they knew the customer would not be covered by the policy.

The case of Mr & Mrs H.* and their successful PPI claim

(*names have been changed)

This example looks at the case of a married couple, Mr & Mrs H. They had taken their financial problems to a debt management company. They had taken out a loan and credit card but due to a variety of circumstances, they found meeting the repayments difficult.

As a result, they took out consolidation loans etc. but this simply added to the financial burden they were facing. They sought the help of a debt management plan.

As part of the plan, they were asked extensive questions regarding their loans etc. and whether they had taken out any form of PPI on the loans. They were confident they had not, stating they had simply signed the forms sent to them.

As part of this debt management plan, Mr & Mrs H. had annual financial reviews and it was during one of these annual reviews with the debt management company that they gave authorisation for the firm to access their records and accounts with various banks to ascertain for certain if they had - or had not - taken out PPI policies on any of their loans.

Within weeks, it had been discovered that Mr & Mrs H. had actually been sold PPI on a variety of their loan products. Some of their loans and credit cards were over 10 years old and so it is difficult to remember whether they had been sold the policies properly or not (don't forget, you have to prove as part of your claim that you were mis-sold the PPI policy).

It transpired that the policies were of no benefit to Mr & Mrs H. If they had been asked the questions as part of the sale process, they would not have taken out PPI as it was of no benefit to either of them; effectively, their income would not have been covered.

Compensation Paid

Bearing in mind they had several loans and credit card accounts, at the time of writing Mr & Mrs H. have received £25,000 back in PPI compensation monies. They can still expect more as they have two more PPI claims currently being processed.

You too, could be in this position of waiting for a PPI compensation cheque to clear. And with our help, that day could come sooner than you think!