Reasons For PPI Claims

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by: Gareth Hoyle
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Word Count: 400
Date: Mon, 7 Feb 2011 Time: 6:06 AM
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Following an extensive investigation by the Financial Services Authority (FSA), it has been discovered that Payment Protection Insurance or PPI has been mis-sold in a lot of cases. FSA investigators found a variety of ways in which it had been mis-sold including although by no means limited to a failure to provide adequate information during the sale, overly aggressive sales claims, or a complete failure to inform the consumer that they were paying for PPI as part of their loan or other financial agreement.

Inaccurate Information
 
One of the findings of the FSA was that lenders did not inform consumers of all the details regarding PPI, including the process and criteria for filing successful PPI claims. For this reason, approximately 90% of all PPC claims are unsuccessful and consumers are left footing a bill that they thought was covered by their insurance policy.

Scare Tactics
 
Scare tactics were also employed by lenders that essentially forced consumers to purchase PPI even though they may not necessarily need or want it. It’s possible that brokers and salespeople worked on commission or had targets to hit that could have led to them using such tactics.

Not Informed Of PPI Premiums
 
Many consumers were simply not told about PPI, but inflated prices were added to their loan or financial quote. This bumps prices for the loan agreement up while the lender knows that very few people will ever make successful PPI claims. In contrast, banks and building societies have made an estimated £5.5m a year profit through the sale of Payment Protection Insurance.

Forced To Purchase Payment Protection
 
It should not be necessary to have to purchase Payment Protection Insurance in order to obtain a loan but many financial consumers were told that it was a necessary part of the application process. Again this could give cause for you or others to make PPI claims and receive any paid premiums from your policy back.
 
The Increase In PPI Claims

PPI claims have become increasingly common as more and more people determine that they were mis-sold Payment Protection Insurance for one reason or another. If you believe that you too have a case then you should speak to a professional to receive useful and accurate advice.

About the Author

Contact Gladstone Brookes Limited today to discuss your case with a professional and knowledgeable PPI claims expert.