Mis Selling of Payment Protection Insurance
Consumers in the UK are still overspending as if the recent recession never occurred. Young people in their 20s are reported as being those most likely to overspend on credit cards and personal lines of credit. Of course the obvious danger in this is in the fact that there will come a time when all those bank charges will need to be paid. However, there is another worrisome aspect of overspending and that is specifically the mis selling of payment protection insurance.
Mis Selling of Payment Protection Insurance a Big Racket
The Citizens Advice Bureau called the payment protection industry the
country's 'biggest protection racket' in its 2005 super complaint. Their
complaint started a chain of events that exposed the mis-selling of the
insurance. Two official investigations later, and
Mis sold PPI has become a major
scandal. Since 2005 more than 1.5 million have made mis selling payment
protection complaints to the Financial Services Authority with that number
continuing to rise.
Lenders Selling PPI to Ineligible Individuals
Some of the worst cases of mis sold payment protection
are where customers were sold policies they were ineligible to use. There are a
number of reasons why a person may be ineligible to use. Common examples include
if a person is self-employed, has a pre-existing medical condition or is aged 65
or over. Where policies where sold to customers who were ineligible to use them,
they could be, in good faith, making payments for years unaware that they would
never actually be able to use the policy.
Have you been affected?
You may be wondering whether you are the victim of the misselling of payment protection if you have heard that your lender has had to pay PPI claims. It very well could be that this is true and perhaps the only way you will know for sure is to closely examine your original loan documents. There are a number of other ways in which to determine if you are paying PPI cover, one of them being to consider the amount you are paying on monthly instalments. If you find that you are paying an inordinately high amount on a loan that doesn't warrant such high payments and perhaps you really have been mis-sold PPI and are eligible to claim back any money you paid in.
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