Northampton, England—11/04/2016 – .The PPI scandal is considered one of the biggest financial mis-selling scandals of all time to hit the UK due to the sheer number of complaints received. Here we provide you with all the information about PPI scam.
PPI stands for Payment Protection Insurance. This insurance is intended to provide customers with cover if they are unable to repay their bank loan or credit card loan due to the following reasons Unemployment, Injuries, Illness or Death
However banks started to aggressively sell these policies to their customers because they were highly profitable. PPI’s were expensive with premiums inflating the loan amount by 20% or in some cases by 50%. Due to this PPI’s were mis-sold on an almost industrial scale to customers who either did not need the policy or those who were not aware of paying for the policy.
The Financial Services Authority or FCA (now defunct) told parliament that around 53 million PPI policies have been sold of which around 45 million were sold by banks. FCA’s initial estimates revealed that almost 3 million people were mis-sold PPI’s. However, by January 2016 12 million customers have been compensated for being mis-sold PPI’s. The average compensation paid out by banks so far to customers is around £2000. However, there have been instances of customers receiving sizeable compensations for mis-sold PPI’S. BBC has reported an instance of a businesswoman from Hertfordshire who received compensation of £65000 pounds from her credit card company.
The financial conduct authority or FCA has announced its intention to impose a deadline by June 2019 for PPI claims. Talks are ongoing to enforce this deadline by the middle of 2017. This will be followed by a public awareness campaign.
“Putting a deadline on PPI complaints will bring the issue to an orderly conclusion in a way that protects both consumers and market integrity.” Andrew Bailey, FCA chief executive
However, this announcement has met with some opposition from consumer groups who believe that compensation amounts set by banks are insufficient.
”If a PPI deadline is to be introduced, when millions of pounds are still being set aside for payouts, the FCA must work with banks to ensure that customers who might not know they were mis-sold PPI get back the money they are owed.” Alex Neil, Director of policy at WHICH?
If you are unaware of having PPI then there is an easy way to do that by using the free PPI check service provided by iSmart consumer solutions. To know more log on to http://www.ppirefund.co.uk/.
About iSmart Consumer Solutions
iSmart Consumer Solutions offers assistance to claim PPI refund through easy and clear-cut methods. The website also showcases solutions to check PPI for free.
Company Name: iSmart Consumer Solutions
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