MIS SOLD PPI EXPLORED

If you have a loan you could be owed £1,000’s in compensation, Mis sold Insurance is the problem, you may not even know you have it; the seller may not even know that they mis sold it. The Citizens advice bureau describes it as a protection racket. Press here for .pdf of their summary.

Which? said people were wasting their money buying any form of PPI policy. "Credit card PPI is a modern day snake oil - it's a useless product, expensive and poorly designed," said Doug Taylor of Which? "In this time of economic uncertainty, people are effectively throwing away £970 million each year, when they should be encouraged to seek independent financial advice about protecting their finances as a whole," he added.

This was rejected by the British Bankers Association (BBA), who said the insurance was a valuable "plan B". "Taking out PPI is not a condition for agreeing to provide the borrowing facility and people are free to shop around if they want to," a BBA spokesperson said.

Experts predict that £5 Billion's worth of Payment Protection Insurance has been mis sold in the last 5 years. Our legal team;s primary role is to help you get back your proportion of that money. We will represent you and also establish and formulate the precise technical reasons to support the claim. We do not charge an upfront administration fee for this service.

THE COMPETITION COMMISSIONER JOINS IN

The Competition Commission has criticised the Payment Protection Insurance (PPI) market after a flood of complaints of mis selling by consumers. It found that it is highly profitable for the seller and there is little if any competition between providers. The report also found that there is little scope for customers to search for alternatives and switch products. Separately, the Financial Services Authority is taking action against unfair practices by PPI providers.

PPI is typically sold alongside a loan and provides cover if the debt repayments cannot be met. In June this year, the Competition Commission concluded that banks and credit card companies were overcharging their PPI customers by a staggering £1,400,000,000 (£1.4 Billion) each year. It blamed a lack of competition at the point of sale when people took out a loan, and suggested that selling PPI at the same time as approving a loan should be banned.

PPI DOES NOT COME CHEAP

PPI premiums as a proportion of the loan: cases reported by breaux 2009