PPI (Payment Protection Insurance)
Payment protection insurance (PPI) is often sold to borrowers with the ‘peace of mind’ and reassurance that credit or mortgage payments will be covered if the buyers personal and/or financial circumstances change for the worse.
However, many find that they cannot make a successful claim on their policy because of exclusion clauses and administrative barriers. Premiums for PPI policies can sometimes add 40 per cent or more to the total amount to be repaid on a loan agreement, thus increasing people’s indebtedness rather than reducing it.
Although PPI may protect borrowers against indebtedness, the national charity the “Citizens Advice Bureau” evidence suggests that it fails a significant number of people; a survey of their clients in 2001 found that 85 per cent of those that had claimed on PPI had been unsuccessful. In contrast, alleged industry figures show around 85 per cent of claims are successful.
In 2006 The Office of Fair Trading (“OFT”) published a market study into PPI practices, which resulted in a formal referral of the PPI market in 2007 to the Competition Commission. In 2008 the Commission highlighted problems in the PPI market and the Financial Ombudsman Service asked the Financial Services Authority (“FSA”) to investigate how companies are handling PPI complaints. In 2009 the FSA banned sales of single-premium PPI and launched its consultation paper. In 2010 banks sought a judicial review of new PPI measures and in early 2011 a high court case commenced. The Ombudsman is continuing to handle consumers complaints about PPI, despite the judicial review.
Much of this information is taken from the Citizens Advice Bureau website. For more information, visit www.citizensadvice.org.uk.
How we can help
The Financial Services Authority has sactioned numerous lending institutions and many have been fined for customer abuse in mis-selling PPI insurance policies.
At Dissolve Debt, we can help you challenge mis-sold PPI and potentially claim back compensation, which could remove or reduce any existing liabilities to those same creditors. For more information, please contact us.
For a copy of our Terms and Conditions please click here.
Dissolve Debt Ltd is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.claimsregulation.gov.uk number CRM28077