The recent tide of misselling of Payment Protection Insurance in the UK , in particular the outlawed single premium PPI cover, is ripping back to catch those offending banks and lenders through the UK courts.
If you have been ‘sold’ either Mortgage Payment Protection Insurance, Loan Payment Protection Insurance or credit card insurance during the last four years, you more than likely have the opportunity to claim all of your premiums back!
Before you go running to many of the no-win no-fee PPI claims lawyers that are springing up everywhere, your first port of call should be to complain to the offending bank, lender or finance company that mis-sold you the protection. If you do not get any from them then you should immediately contact the Financial Ombudsman
The number of PPI mis-sold policy complaints being upheld against financial services companies has soared during the past year, according to the Financial Ombudsman Service Annual report, which deals with public complaints about Insurance.
The number of complaints about payment protection insurance misselling tripled to 31,066 during the last year, this followed a five-fold increase in complaints during the previous year.
The number of PPI complaints upheld by the Ombudsman was an astonishing 89 per cent proving that the policies were widely missold.
The Ombudsman blamed the situation on the economic downturn, saying some firms were not investigating claims properly before they were referred to the service because they were watching their bottom line.
It added that survey evidence suggested that many consumers were being put off pursuing complaints against companies because of the unhelpful attitude of the firms involved.
If you believe you have been mis-sold a PPI policy you should write to the company involved.
You should tell them that you do not believe that the PPI you bought was sold in your best interests.
you should tell them that unless they can prove that the policy was fair and reasonable and that yuo were treated fairly when sold the insurance – that you demand a full refund of all premiums, and subsequent interest on these payments, that you have paid in relation to this policy.
You should also inform them that you also expect 8% interest to be added to each payment you have made – as this is the statutory amount a UK court would pay.
Around half of the complaints against PPI misselling related to six of the UK’s largest financial institutions! PPI is still a good product for Accident Sickness and Unemployment protection, however it is wise and much cheaper to purchase this type of cover on a monthly basis from one of the leadinbg Uk independent PPI providers.
Some examples of these are:
Burgesses – the UK’s leading PPI suppliers
Personal Accident – Compare mortgage protection and Income protection insurance rates and plans
iProtect – offering free switch facilities at great rates
British Insurance – various PPI online offerings at competitive rates