Although UK banks have made many legal challenges, they are being forced to repay billions for oversold or missold Payment Protection Insurance. In fact, the court essentially affirmed the Financial Services Authority’s right to require the banks to pay back missold PPI and to pay back interest that they charged as a result of the misrepresentation.
Mis Sold PPI
This could result in a few hundred pounds in reimbursement for a consumer who has been a victim of this fraud. It could also result in thousands of pounds of reimbursement. The length of time in which payments were made also increases the amount of interest paid. Many consumers will receive restitution for this interest as well as for PPI payments.
Illegal practices by the banks included several activities. First, many borrowers took PPI with their loans because they were misled into believing they had to get it or face not getting the loan. In this example, the bank structured the loan so that the PPI was paid first. This increased the cost of the loan, driving up interest payments. This makes it imperative that consumers receive not only the money paid for PPI, but also the additional money that was paid as interest.
Compound Interest on PPI
For instance, if a consumer paid £3,000 in payments over four years, the consumer may also be owed another £1,000 in interest. Each borrower has an individualized claim that will result in an amount specific to the payments and interest that were fraudulently applied to the loan.
In a second, similar example, borrowers signed up for PPI who were ineligible for the benefits. The loan provider deliberately misled these consumers, and they did not receive ample counseling that would have prevented this situation. In this case, they made PPI payments and paid additional interest on the loan, as in the aforementioned cases. If they tried to make a claim against PPI, they were denied because they were ineligible for benefits under the terms of the very agreement that was forced upon them. In this case, the consumers are owed the money they spent on PPI and any interest that they paid as a result of PPI.
For instance, a person may have expected PPI to cover their mortgage during an illness or job loss. The consumer experienced this tragedy and applied for help through PPI. They were then denied. This person would definitely be entitled to reimbursement for PPI and any interest. Having been denied is not a prerequisite to filing a claim for restitution, however. If PPI was missold, it was missold, even if the Payment Protection was never applied for.
Credit Card PPI
PPI also was attached to credit cards in a similar manner. It may have been sold fraudulently to individuals who didn’t qualify. It may have been attached to the credit card without the knowledge of the borrower. The lender may have implied that PPI was a requirement for the credit card. In all of these cases, the consumer has a right to PPI reimbursement and interest reimbursement as well. The formulas may be complicated, but it is possible to determine the over-payments in both PPI and interest.
In all of these cases, the consumer has the right to apply to their financial institution for restitution. Many consumers have turned to experts to get their PPI back. There are several reasons that consumers tend to need help with their PPI claims.
One reason is simply that the financial institutions can stall claims, and individuals don’t have the know-how to push them to work faster. The second reason has to do with the interest payments. Banks may not help the consumer determine the amount they are owed for PPI or how much interest must be repaid. It’s a complex legal and financial quagmire that favors the big banks over the consumers, but it is the best hope that consumers have to recover money that was essentially taken from them under false pretenses.
The reimbursement fund is billions. If you have a claim, don’t wait. There are some time limitations. Get help soon to recover any money that the banks may owe you and your family.
PPI Claims Company News
Step-by-Step Guide to PPI Claims for Alliance & Leicester
Although Alliance & Leicester has been ordered to send notices to customers who have been mis-sold PPI, the real number of customers the bank mis-sold PPI to by far surpasses those who have actually received notices. If you are uncertain whether you have PPI from Alliance & Leicester, check through all of the paperwork that you were given at the time of taking out the loan, mortgage, credit card account, or other financial agreement. If you find evidence or think you have been mis-sold PPI, read on to find a step-by-step guide on how to claim back your PPI from Alliance & Leicester.
PPI Complaints Mis-Handled, Lloyds Banks Admits
Lloyds recently announced that one of its centres specialsing in handling PPI complaints has produced obvious shortcomings. The announcement comes on the heels of discovering that a Times reporter went undercover at one of the bank’s notorious complaints handling centres.
Can I claim PPI on Barclaycard?
If you purchased payment protection insurance (PPI) with your Barclaycard, then you may be able to make a claim against the company. The PPI scandal has rocked the nation and resulted in huge numbers of PPI claims involving the UK’s largest financial institutions. Customers who were victims of mis-selling have a right to file a claim for monetary compensation.
The Real cost of PPI to consumers
The cost of the PPI bank scandal to UK citizens can be measured both in pounds and the falling trust that consumers have in their banking institutions.
Which? has recently released an opinion to the Parliamentary Commission on Banking Standards that characterized the Payment Protection Insurance scheme as “a poor product that was sold badly.” Which? is a group that campaigns for the protection of consumer rights and offers an independent view on various subjects.
Tim Capper reports on Financial Mis-Selling for Maple Leaf Financial. Our aim is to ensure you get honest advice and proper guidance to ensure a suitable recommendation can be made to pursue a financial claim
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