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Alliance and Leicester mis sold PPI

In 2006 an investigation was launched into the credit card charges applied by lenders for late payments and over the limit fees. Headed by the Office of Fair Trading, the investigation sought to determine the fairness of these charges. It was found that some lenders charged up to £35 for these type of fees. Lenders attempted to justify these charges by claiming they were necessary to cover the costs of administrating accounts, but, after a thorough investigation, the OFT announced that £12 was the maximum charge that they regarded as ‘fair’ in relation to these type of charges. The figure took into consideration postage and staffing cost and some contribution to IT systems. Since the OFT investigation most lenders have lowered their fees to £12. The investigation has also opened the door for unhappy customers who believe they have paid unfair bank charges in the past to reclaim their money.

Also in 2006, the OFT, along with the Financial Services Authority (FSA), investigated the issue of mis-sold PPI. They discovered that many policies had been incorrectly sold and, as a consequence, some lenders were fined. Alliance and Leicester was one of the lenders caught up in the scandal and was handed a fine totalling £7 million. The fine related to failings that occurred during telephone sales taking place between January 2005 and December 2007. The media attention surrounding the fine led to a significant increase in Alliance and Leicester mis sold PPI claims.

Since 2006 the number of people making payment protection claims has increased dramatically and it seems mis-selling has affected, to varying degrees, lenders at every level. So far, more than 1.5 million complaints have been reviewed by the FSA and thousands of customers have received compensation. If you believe you may be entitled to compensation you can start your Alliance and Leicester mis sold PPI claim today simply by calling 0207 471 2000.

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